Inverse imbalances are indications of trapped traders. They occur when there are multiple stacked buy imbalances at in a red bar, (or multiple stacked sell imbalances in a green bar).
These imbalances mean traders went a long (or short) trying to trade a breakout but prices reversed on them and now these traders are trapped in a losing position.
RULES
- red bar with multiple stacked buy imbalances at the top of the bar
- green bar with multiple stacked sell imbalances at the bottom of the bar
An example is attached where price breaks out from a consolidation area. Traders go short , trying to trade the breakout, but then the price reverses up again.
The traders who got short got trapped and are now in a losing position.
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In review
💡 Feature Request
About 1 year ago

nookie
Get notified by email when there are changes.