All language subtitles for 1) Price Action Imbalance

Price imbalance is a very
important concept to understand

as it can be incredibly
powerful. So imbalances occur

when either buyers or sellers
take control over a particular

piece of price action. Where
essentially it leaves gaps in

the market. That price will
eventually come back to in the

future so we can rebalance
price before either continuing

or continuing in that
direction. So when we learn at

a bearish imbalance it means
sellers have been mostly

dominant um in in moving price
down and the buyers haven't had

a chance to get involved. So
the same is true for when we

see a bullish imbalance. Buyers
take control and the sellers

don't get involved um in the
majority of that move. So

imbalances occur on every
single time frame. So from the

monthly all the way down to
even you know a seconds time

frame. Er you'll see it happen
on on every time frame. And

once you go through your chart
just to see how this works. You

will start to view the markets
differently and realise how

price refills these imbalances
sometimes perfectly to a tee

before you know continuing in
the other direction. Price

imbalance is when we either get
a large momentous candle or

where wicks are not meeting. So
the easiest way for me to show

you this is with the example
below where we're gonna look at

three bullish or bearish
candles in a row. So if we look

at this example here we have
three bearish candles in a row.

Okay so it's all selling
pressure. Now this would be

classified as a balanced bit of
price action because if we look

at the wicks, you can see
they're meeting. So, what does

that mean? Well, if we look at
the the low of this first

candle wick, you can see it was
down here. We then had price

come up and we had this candle
coming down. And then the top

of the third candle is meeting
with the bottom of the first

candle. So, you can see there's
no imbalance that has been

left. So, price has come down
pulled back a little bit come

down again and then it's pulled
back to rebalance and meet the

bottom of this wick here with
the top of the third wick as

you can see now an imbalance
would be here so we have the

exact same thing with three
candles but you can see how the

top of the the bottom of the
first wick here is not meeting

with the top of the third wick
so this whole move from this

week to this week. This bit of
um trading in here. This

selling pressure is called an
imbalance. So you can see where

the wicks are not meeting. So
that's basically what an

imbalance is. And we have the
bullish example here. So we

have three bullish candles in a
row. This is a balanced bit of

price section because the top
of the first wick is meeting

with the bottom of the third
wick. So it's balanced and

another word for it is is
efficient. So it's efficient

price action. This is
inefficient. This is efficient.

Now and the imbalance you can
see the same thing we we have

AA gap from the top of the
first week to the bottom of the

third wick. So this is the
imbalance in here. Now what I'm

gonna do is go through Euro
USD. Let's go onto that now.

And I'm just gonna go through a
month's worth of you know data

on the hourly time frame and
you can see some examples. So

I've drawn out some imbalances
and some order blocks. So let's

go through it. So zoom in right
into this bit of price section.

You can see we have the three
candles coming down. Okay so

one two and three. A bearish
push. If we take the low from

the first candle which is here
and the height you can see this

is an imbalance and I've put it
on so the line here from this

wick to this wig you can see
let me just get on

So from here to here this is an
imbalance. Okay? So price is

likely to refill that before
continuing. But if we also see

this this push down broke
structure and we have an order

block which will be the last up
move refined down to this

candle. Price tapped in. Before
then you're continuing. As you

can see. We tap in. We
rebalance that bit of

efficiency. Inefficiency sorry
and then we continue after

tapping into the order block.
This bit of price action here

you can see we've low, high,
low, high. We're sort of

pulling back each time we're
making lows. So we can classify

this as you know efficient
price action because all the

wicks are sort of meeting with
these pushes down. Which would

be more seen on a lower time
frame. These um efficient price

action sort of moves. But
continuing on the next bit is

here. So we have a breaking
structure. We have three

bearish candles. So if we look
at the low of this candle then

the higher the third. This
would be the imbalance. So you

can see we also have have an
order block which will be here

because the momentum came in
here. So price comes all the

way down here and then we
eventually come back up pull

back. We come up again and we
rebalance. So you can see this

wick here. Rebalances that
inner efficiency perfectly. Now

we do fall just short of the
order block but we could refine

it down on a 15 minute time
frame and you know get involved

in that trade. And yeah so if
you look here we have a low

lower high the price then
impulsively breaks structure

here and we get three bullish
candles in a row but if we look

at this candle so one two and
three we take the high of this

candle and the low we can see
we have imbalance price then

pushes up pulls back it just
taps into that imbalance but it

it leaves quite a lot left to
er refill. We then break

structure. We tap into this
imbalance before rejecting. We

form some liquidity around this
area but then we do eventually

tap into it. And you can see
the bottom of the imbalance is

here. We have an order block.
The price come down to tap into

the order block to rebalance
that inner efficiency perfectly

before continuing. So this
would be a very nice trade that

we can get involved with. But
if we just move on after

tapping in we break structure
and you can see from here so we

have 123 again three candles
the high and the low you can

see we're meeting so this is
what we call efficient price

action so as prices come down
now this week on a lower time

frame it'll obviously be you
know bearish candles we can

classify this as you know
efficient so price can come up

from here. We can move up to
new highs as we as we did. So

the next bit is here. The
higher this candle to the low

only a little bit of imbalance
but you can see price wicked

down um before you know
continuing to the upside. Next

bit is here so the high and the
low. This would be the

imbalance price comes down with
this wick. Excuse the drawings.

But then ultimately we continue
up before pushing down. Now

with imbalances it won't always
er refill price completely to

like 100 percent. What I've
seen from my testing is if we

get a an imbalance and it it
comes down to refill it by at

least 50% then that can be
enough for price to then

continue. Um in that direction
that we're looking at. So it

won't always refill price all
the way. Now another thing is

it won't always if we get a
certain impulsive move up um

like this. So this is a good
example. So we have this

impulsive move up but you can
see price never come back down.

To rebalance it. Now this just
means that it can be used for a

later date. They won't always
all straight away. So that's

just something to keep in mind.
But if we just continue, you

can see we push down. We have
three candles here. You know

low momentum candle but we do
have an imbalance. Price comes

up to mitigate as I was saying
to at least 50% then continued

but then we do see some bullish
pressure breaking structure.

And this is the imbalance that
I was talking about. That you

know we have a lot of buying
pressure here. Price never

comes back down to test it. We
just continue up. But if we

continue we can see we push up.
We have one candle here which

would be a bit of imbalance on
a lower time frame. But then

this sort of move up we have
imbalance. Price comes down to

mitigate most of it. But
ultimately most of this move is

efficient. We then impulse
outbreaking structure and we

also have this little bit of
imbalance that price feels

here. We have efficient price
action with these wicks. But we

do have an order block. So
price come down eventually

tapping into that order block.
So the last down counter which

is here. We tap in before
continuing. Er nimmt mich auf

die sowie

And you can see we we are on
this pair we are clearly

bullish. So we're not coming
below the higher lows. And you

know we're respecting these
order blocks that are forming.

So again we break structure to
the upside. We have the high of

this candle to the low which is
an imbalance. Price comes back

down to rebalance. We tap into
the order block and you can see

we tap in three or four times.
We push off and then we come

back down to mitigate to the
50% or just um you know around

7075 percent of the order block
before continuing. The next

imbalance would be from this
wick to this wick. So this

whole move is just nothing but
buying. Which you know we had

this push down which was
mitigating this move. So this

was just probably a news
candle. But yeah moving on.

This is all efficient. You can
see how the wicks are you know

matching. They're meeting with
each sort of move. And free

candles here. Wick to wick. You
know it's efficient price

action. So moving on. We have
here sort of one two three.

This imbalance price comes down
perfectly. Which would be seen

you know more in a lower time
frame. But we come to balance

price. We push up. Push back
down. And then we have an

imbalance here. Price comes up
but then ultimately just breaks

right through it impulsively.
So let's keep an eye on this

bit of price for a future
movement. So we have an

imbalance and we have a clear
imbalance here as well. Which

you can see price comes down.
Okay so moving on we break

structure. The high and low
price comes down to mitigate

pushes back up and then we do
see price. Move to the downside

but as we broke structure here
we could take the last up move.

Refine it down to this candle.
Price tapped into an order

block. And if you wanna say we
had an imbalance we could argue

from this low to this high. A
little imbalance. Only little

but you know we still come up
to refill that. We have an

imbalance here so a lot of
buying pressure here comes down

pushes off and then we we fill
it all here and we do reject

off of this order block we wick
below. And this wick was

ultimately just trying its best
to you know refill this large

move here. And as you can see
we do feel around 50% of it. As

I was saying you know 50% is a
good sort of level where it

likes to rebalance before
continuing. But if we continue

we can see the next imbalance
would be here from this low to

this high. Price doesn't quite
come down to refill it all. We

do break structure. We have
these little imbalances here.

We tap into the order block. We
reject it. We tap in again.

Reject it. And then imbalance
here. I'm sure you can get the

the um the concept of how
powerful this is. Just from

looking at this you know 1
month of data. So Next

imbalance is here. We come down
and order block is formed. We

respect it. We tap in. We break
off. Tap in again. We leave

this imbalance from this high
to this low. Price comes down

and again probably due to some
news. Weak below the imbalance

tapping into an order block and
then we see some heavy momentum

to the upside. And price comes
back down. We have a bit of

imbalance that was left with
these three candles.

We have a bit of imbalance
here. Price wicked it. And we

had an order block that was
formed. Because we broke

structure. More seen on a lower
time frame. And then we have a

lot of sellers coming into the
market. So the lowest candle to

the high. It's all imbalance as
I'm sure you can see by now.

Price comes back up. We fall
just short of the order block.

But again it can be refined
down on a 15 minute time frame

where we can get involved in
this trade. And I believe this

was a trade that I did take.
Now with imbalances what we can

do is just use them as extra
confluence when looking at a

trade. I don't never recommend
you trade solely off

imbalances. Because it's simply
not enough to have as a

compliments to trade in. So
it's better to use it. So if

we're looking at this as you
know our so hourly time frame

we we're looking at this as a
push down a pullback and a new

low. So this would be our lower
high. Where we can look to get

short from. Now what we can do
is use the imbalance from here

to here as just more of a
confluence. So if we was to you

know push down come back up and
rebalance this move. But fall

short of this order block. As
you can see we did before we

put in a new low. Then we can
still enter on our lower time

frame breaks in structure
because price is now efficient

even though we just fell short
of the order block. Price is

efficient as we have rebalanced
this move. So we can still you

know take advantage of this
trade. Okay moving on. We put

in this new lower low. We have
an imbalance from this wick. To

this wick. We pull back
rebalance and then continue. We

have the exact same thing here.
So from this wick to this wick.

Also from this wick down to
here. You can see if we

rebalance it to the 50% before
continuing. Well we we respect

the imbalance we push off and
then ultimately we see some

heavy momentum to the upside
but I'm sure you can get the

the rough idea of how a
powerful imbalances are. Now

what I would want you to do is
go onto your chart just like

I've done here. You know choose
a pair. You can use any asset

on this um that's tradable. In
the markets use anything you

want. Any type frame and a bit
of homework. Just go through

it. Maybe you know a month
data. Really dig deep into it

like I have. Plot on your
imbalances and all the blocks

and just see how it works. Um
I'm sure you'll get to get to

um start seeing the market
differently. And how it it

respects these imbalances. Um
but yeah I hope this was

helpful and let me know how you
get on with your own um sort of

back testing.