CandelaCharts - Volume Imbalance (VI)

어제

📝 Overview

Volume Imbalance occurs when there’s a noticeable gap between the bodies of two consecutive candlesticks, with no overlap between them. While the wicks of the candles might intersect, the candle bodies remain entirely separate. This phenomenon often signifies that the algorithm driving market activity did not evenly distribute prices between these two levels, leaving behind a small Volume Imbalance (VI).

• A Bullish Volume Imbalance forms when the body of a green candlestick gaps above the previous candle’s body, with no overlap, indicating strong upward momentum and insufficient sell-side liquidity.
  
• A Bearish Volume Imbalance forms when the body of a red candlestick gaps below the previous candle’s body, with no overlap, signaling intense downward pressure and a lack of buy-side liquidity.
  

This indicator can automatically identify volume imbalances by scanning candlestick patterns and detecting gaps between consecutive candle bodies. These volume imbalances act as price magnets, often attracting the market back to fill the gap before resuming its original direction. Recognizing and leveraging these gaps can be a powerful tool in technical analysis for predicting price movements.

📦 Features

• MTF
  
• Mitigation
  
• Consequent Encroachment
  
• Threshold
  
• Hide Overlap
  
• Advanced Styling
  

⚙️ Settings

• Show: Controls whether VIs are displayed on the chart.
  
• Show Last: Sets the number of VIs you want to display.
  
• Length: Determines the length of each VI.
  
• Mitigation: Highlights when a VI has been touched, using a different color without marking it as invalid.
  
• Timeframe: Specifies the timeframe used to detect VIs.
  
• Threshold: Sets the minimum gap size required for VI detection on the chart.
  
• Show Mid-Line: Configures the midpoint line's width and style within the VI. (Consequent Encroachment - CE)
  
• Show Border: Defines the border width and line style of the VI.
  
• Hide Overlap: Removes overlapping VIs from view.
  
• Extend: Extends the VI length to the current candle.
  
• Elongate: Fully extends the VI length to the right side of the chart.
  

⚡️ Showcase

Simple

Mitigated

Bordered

Consequent Encroachment

Extended


🚨 Alerts

This script provides alert options for all signals.

Bearish Signal

A bearish alert triggers when a red candlestick gaps below the previous body, signaling downward pressure.

Bullish Signal

A bullish alert triggers when a green candlestick gaps above the previous body, indicating upward momentum.

⚠️ Disclaimer

Trading involves significant risk, and many participants may incur losses. The content on this site is not intended as financial advice and should not be interpreted as such. Decisions to buy, sell, hold, or trade securities, commodities, or other financial instruments carry inherent risks and are best made with guidance from qualified financial professionals. Past performance is not indicative of future results.