Imbalance, this is a zone / gap created when the price move with force in a given direction. It identify a zone where the price could potentially go back. This gives perfect targets for your trades.
Imbalance is created from the high and low of 3 candles. When the wicks the of 1st and 3rd candle does not fully overlap the middle one.
You can define the penetration ratio which will delete a tested zone from the chart. Usually find that 20% (0.2) is pretty accurate.
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Update screenshot with imbalanced zone displayed correctly
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Add alert on new imbalanced candle Fix deletion of triggered imbalanced zone
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Add note & fix screenshot
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Just update screenshot
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Add color option for boxes Add mid line for each boxes
The mid line can be used as specific target when using imbalanced zone as your potential target zone.
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In this update you'll be able to select the timeframe you'd like the imbalance to be computed and displayed with (eg: 15min imbalance on a 5min chart)
Also a reduce option which will reduce the imbalance based on price touch within it.
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Add new imbalance zone - daily and weekly open gap, which are relevant for non crypto market - volume imbalance with their own TF support
Wonderful script ! Kudos to you for this work ! :)
One more thing to have would be very nice : when an imbalance area gets partially filled, instead of deleting it, it would be nice to have an option to have it refined and redrawn.
store6152
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Can you write me an indicator that finds ftr zone zones?
avoterz123
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What is the purpose/meaning of the penetration ratio?
Dglittley1984
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Could you code in an alarm when imbalanced zones are hit? Would be great so could get a notification
Sultrades
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Thank you for this indicator. You have actually changed the way I trade and understand the market. Seriously, thank you.
Indyanguy12
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Kindly, Add option to change color of zones
frozon
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@Indyanguy12, thx for your request. I pushed an update with an option to change the color of the zones.
One more thing to have would be very nice : when an imbalance area gets partially filled, instead of deleting it, it would be nice to have an option to have it refined and redrawn.