September 23, 2024
Imbalance (Price Disbalance)
- Imbalance (IMB) – price inefficiency (disbalance) caused by impulsive price movement due to an abnormal dominance of demand or supply at a price level.
- Equilibrium – the fair price of the Imbalance, corresponding to the 0.5 level of the entire zone on the chart.
- Full Fill – complete closure of the price imbalance.
- Swing Failure Pattern (SFP) – a false breakout of the high or low of the previous structural point.
Imbalance
Imbalance (IMB) refers to price inefficiency, which occurs due to impulsive price movements caused by an abnormal dominance of demand or supply at a certain price level. When the price doesn't meet resistance in the form of orders, it moves sharply.
This area will later act as a magnet for the price, and the imbalance will be filled.
To identify the Imbalance zone, the Fibonacci grid is used.
Imbalance in an Upward Movement
The zone is drawn from the high of the candle before the imbalance to the low of the candle formed after the impulsive movement.
Imbalance in a Downward Movement
The zone is drawn from the low of the candle before the imbalance to the high of the candle formed after the impulsive movement.
Equilibrium/Full Fill
- Equilibrium is the fair price of the imbalance, corresponding to the 0.5 level of the entire zone on the chart. Typically, the price reaching the 0.5 level is sufficient to close the price inefficiency.
Which Timeframes to Look for Imbalances:
From 1 minute to 1 day. In my case, I mostly focus on 1-minute to 15-minute timeframes.