emarucci1977-hub/liquidity-void-predicotor

This repository contains a script written in Pine Script, the programming language used to build custom indicators on the TradingView charting platform. It is built specifically for trading the EURUSD currency pair in the forex market. The script's job is to spot what it calls liquidity voids: price zones where the market moved so fast that very few trades actually happened at those price levels. According to the README, this occurs when large institutional investors place very big orders, causing sharp, almost straight price moves with barely any back and forth. The idea, drawn from trading concepts known as Smart Money Concepts and ICT theory, is that the market eventually tends to pull price back into these thin zones later on, to fill in the trades that were skipped the first time around. The indicator works by studying how much trading volume happened at each price level, rather than over time, looking for spots where almost no volume occurred compared to nearby levels. It then highlights those zones directly on the chart, often by drawing colored boxes, so a trader can see at a glance where these gaps are and where price might be pulled back to next. The README also explains how this differs from a related, more commonly known concept called a Fair Value Gap: a Fair Value Gap is usually a small three-candle gap that often only gets partially filled, while a liquidity void covers a much larger, more violent price move and tends to get filled in completely over time. Finally, the README describes two ways traders might use these signals: a reversal strategy, betting that price will turn around and head back into a void once the original move loses steam, and a pullback strategy, entering a trade once price re-enters the void and continues in the direction of the original, larger trend. No license information is given in the README.