Volume imbalances are subtle, highly sensitive market structure gaps that occur when candle bodies fail to overlap.
Spotting Volume Imbalances
A volume imbalance occurs when there is a gap between the close of candle 1 and the open of candle 2, but the wicks of the candles overlap.
Because the wicks overlap, retail charts see no gap. But because the bodies do not overlap, it represents a volume delivery failure. Algorithms treat this gap as a highly reactive support/resistance level.
