📉 Imbalance: Supply and Demand Imbalance

Imbalance (or FVG — Fair Value Gap) occurs when there’s a segment on the chart where the market moved too rapidly, leaving a “liquidity void.”
In other words, one side (buyers or sellers) overwhelmed the other, so there was no proper price balance in that range.

😀 How it looks:
– Usually, it’s a long candle whose body and wicks don’t overlap with the neighboring candles.
– It creates a zone that the market “jumped over” too quickly.

💡 Why this matters for traders:
– The market tends to return and “fill” these zones.
– These are excellent reference points for finding entry levels.
– After revisiting the Imbalance zone, the trend movement often resumes.

⚔️ How to use:

Find areas where the candles don’t overlap each other.

Mark the Imbalance range (from the high of the first candle to the low of the third candle).

Wait for the price to return to this area - this is a potential trade entry point.