Tools

Volume Imbalance

Volume Imbalance

Volume imbalances develop when price fails to trade efficiently between two price points. This array can behave like a magnet for price to gravitate back into. Detecting it visually is challenging, and automation is essential in a rapidly changing environment.


The occurrence of a volume imbalance is marked by a separation between the bodies of two consecutive candles, without any body overlap, although their wicks may intersect.

This signals that the algorithm has not efficiently provided prices to the market between these two points, creating a micro fair value gap. Such areas often attract the market to revisit and undergo repricing, leading to subsequent movements either in favor or against the trader.

Volume imbalances function like magnets, pulling price to reprice the area before making a move.

Source: https://www.youtube.com/watch?v=VLis0LcbUaQ&t=1347s


Features:


You can customize the appearance of volume imbalances according to your preferences. The settings closely resemble, if not identical to, how FVG Pro functions.


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