ICT Liquidity Imbalance Explained

What is Liquidity Imbalance in ICT?

A descriptive term for one-sided or uneven price delivery where price moves quickly with limited opposing trade/overlap.

Definition of Liquidity Imbalance

A directional imbalance in price movement; it may overlap conceptually with FVGs, volume imbalances or liquidity voids depending on usage.

How to identify Liquidity Imbalance

Look for fast directional candles and limited overlap; specify whether you mean a candle-body VI, three-candle FVG or broader void.

Bullish Liquidity Imbalance example

aggressive buying creates upward imbalance and later retracement may find support.

Bearish Liquidity Imbalance example

aggressive selling creates downward imbalance and later retracement may find resistance.

Liquidity Imbalance chart examples

Practical trading example

Mark the fast bearish leg and distinguish its FVG from the broader low-overlap region before planning a retracement trade.

Common mistakes and important notes

Broad label with variable usage. Always state the exact observable rule to avoid mixing different concepts.

Related ICT concepts

Part of Imbalances and Price Gaps. New to ICT? Start with the beginner guide.