Imbalance Volume Trend

📌 Imbalance Volume Trend — Fair Value Gaps + Volume Imbalance + Trend Shifts

Imbalance Volume Trend is a price-action-driven indicator that automatically detects Fair Value Gaps (FVGs), measures the volume imbalance inside each gap, and builds a dynamic trend structure based on the sequence and strength of imbalances.
It visualizes the true power behind impulsive moves and provides early signals of potential trend reversals.

🔍 Core Concept

A Fair Value Gap appears when the market moves aggressively in one direction, leaving an “unfair” price zone caused by a strong imbalance between buyers and sellers.
These zones are often revisited by price, providing high-probability trading opportunities.

This indicator not only marks FVGs but also evaluates how strong the imbalance truly was by analyzing buy/sell volume dominance on the breakout candle.

📘 How the Indicator Works

1. Automatic Fair Value Gap Detection

The indicator scans for the classic 3-candle FVG pattern:

Bullish Imbalance

• Candle 2 forms the bullish impulse.
  
• A gap remains between the High of Candle 1 and the Low of Candle 3.
  
• The indicator draws a bullish rectangle covering this area.
  

Bearish Imbalance

• Candle 2 forms the bearish impulse.
  
• A gap remains between the Low of Candle 1 and the High of Candle 3.
  
• A bearish rectangle is drawn around the imbalance.
  

The breakout candle (the middle candle) forms the core of the imbalance and shows the directional expansion of price.

2. Volume Imbalance Percentage (%)

A unique feature of this tool is the calculation of buyer vs seller volume dominance inside each imbalance.

• Can analyze lower-timeframe volumes or tick volumes.
  
• The indicator computes how much buyers or sellers dominated during the formation of the FVG.
  
• A colored percentage label appears near every imbalance, showing:
  
  • Buyer dominance % for bullish gaps
    
  • Seller dominance % for bearish gaps
    

This helps traders understand the strength of each imbalance.
Often, during late stages of a trend, the percentage value starts to weaken — giving early warning of trend exhaustion.

3. Imbalance-Based Trend Structure

Another powerful component is the Imbalance Trend Engine, which builds a trend direction using consecutive FVGs.

A trend continues as long as new imbalances form in the same direction.

A trend reversal is detected when:

• A new imbalance appears in the opposite direction, and
  
• Its body breaks through a specified level of the previous imbalance of the current trend.
  

When this event occurs, the indicator plots a colored arrow marking the change in Imbalance Trend.

This creates a clean and logical price-action trend model built entirely on institutional-style imbalances.

4. Alerts & Notifications

The indicator supports TradingView alerts for:

• New Imbalance Detected
  
• Imbalance Trend Reversal