Imbalance

- Today we will talk about imbalance. What exactly is an imbalance, and how to recognize it?

- Imbalance can often occur in forex due to many reasons. Imbalance can move upwards or downwards.

- Most of the imbalances get filled up within minutes, hours or in one daily session. But it is not always like that, some can take days to fill up.

- Imbalance is like a gap, it drives the price to go in the direction where it made the imbalance in order to fill it up.

- We can use all that information in our favour to maximize our edge in the markets in different ways.

- Here we have 2 examples, on the left example, the price left an imbalance, but on the right, it did not.

How?

- At first glance, these 2 examples look totally the same, but they are not. In the example on the left, the price left an imbalance, and the wicks are not touching, while on the left side the wicks are touching and therefore we do not have an imbalance as in the first example.

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