Understanding Volume Imbalances – The Market’s Unfinished Business
A Volume Imbalance occurs when price moves very quickly upward or downward, leaving behind price zones where little or no trading has taken place – often called No Trade Zones. These imbalances can be spotted on the daily timeframe and are similar in nature to gap ups or gap downs. They typically happen due to strong news, institutional activity, or sudden shifts in sentiment. Market behavior shows that these gaps are often “filled” within 2–3 months, as price revisits these levels to balance out trading activity. For traders, these zones act as important reference points for future support, resistance, or potential trade targets.
#VolumeImbalance #PriceAction #GapTrading #MarketStructure #TechnicalAnalysis #TrueDirections1
A Volume Imbalance occurs when price moves very quickly upward or downward, leaving behind price zones where little or no trading has taken place – often called No Trade Zones. These imbalances can be spotted on the daily timeframe and are similar in nature to gap ups or gap downs. They typically happen due to strong news, institutional activity, or sudden shifts in sentiment. Market behavior shows that these gaps are often “filled” within 2–3 months, as price revisits these levels to balance out trading activity. For traders, these zones act as important reference points for future support, resistance, or potential trade targets.
#VolumeImbalance #PriceAction #GapTrading #MarketStructure #TechnicalAnalysis #TrueDirections1
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.