What does a lack of liquidity in a price range (FVG) suggest for entry?

What does a lack of liquidity in a price range (FVG) suggest for entry?

• A. It indicates the market is highly liquid
• B. It indicates a zone where price will not return
• C. It indicates a gap with no significance
• D. It indicates a zone where liquidity is scarce and can be targeted in the direction of bias

Answer: (D)

Lack of liquidity in a price range creates an imbalance where there aren’t many resting orders to hold price up or absorb selling pressure. When a fast move leaves a fair value gap, that zone becomes a liquidity void that price can sweep through quickly. Because liquidity is scarce there, traders expect price to revisit and fill that gap, and the move is often aligned with the prevailing bias. So the best approach is to look for an entry as price revisits or tests that FVG, aiming to ride the continuation in the direction of the bias. The other ideas don’t fit because they imply high liquidity, no chance of return, or a gap with no significance, which isn’t how these zones typically behave.

Lack of liquidity in a price range creates an imbalance where there aren’t many resting orders to hold price up or absorb selling pressure. When a fast move leaves a fair value gap, that zone becomes a liquidity void that price can sweep through quickly. Because liquidity is scarce there, traders expect price to revisit and fill that gap, and the move is often aligned with the prevailing bias. So the best approach is to look for an entry as price revisits or tests that FVG, aiming to ride the continuation in the direction of the bias. The other ideas don’t fit because they imply high liquidity, no chance of return, or a gap with no significance, which isn’t how these zones typically behave.