9 Ağustos 2022
Liquidity Vacuum Fade

Good Morning.

I wanted to share one of the setups I’ve learned over the years. It is a high probability trade that offers solid risk management.

A liquidity vacuum fade occurs when there is a large spike in price because there was no liquidity. You then fade (trade against the big move) because the vacuum that was created still holds orders and positions.

This happens during NFP, Central Bank meetings, Rate statements, etc.

I have one specific trade example I took on Friday and was able to close this morning. The others that I have I noticed but did not trade due to the small range.

[Weekly pivot at 0.75353. Also source of the most recent nosedive. 4:1 RR. The only one I traded](https://imgur.com/a/hEHKjcv)

[CL (Crude Oil Future). Big run up into previous supply. Then, after some bullshit, you see distribution back down to the source.](https://imgur.com/gpP6Ely)

[6E (Euro Future). Same scenario all though smaller scale and a bit quicker so I broke it down into 2 timescales. This is the 15m for reference to previous supply](https://imgur.com/a/wW3PFmA)

[6E 1m. To give you a better perspective of zones and movement](https://imgur.com/a/xAsLbR7)

You can also think of this as “fading a gap”. I look at gaps as large candles when trading them.


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