If you are scalping or day trading- this bearish or bullish imbalance mostly happens at end of Tokyo session and/or start of London session. This is when big banks and/or institutions quickly do a FAKE move (like chart bearish/Red candles) then with double, triple money reverse price action (like chart bullish/Bull candles)- in direction of trend of day.
What happens is this combined move is so quick and has high liquidity and volume that price action leaves an area with only one sided trading (not area on chart where only sellers were and zero wicks filled area)- the arrhythmic computer does not like that this area is only one sided, so will push price action back into this area or close to get price action back in balance.
Note: on chart that price action did a bearish push back almost into the buyer only area during last 1 candle of the London session (doji on chart).
Things to look for to find imbalance on a chart: 1) One sided buying or selling only 2) Large candles on 1 hour or 4 hour charts 2) No candlesticks right or left of imbalance candle (its all alone) 4) Price action leaves either a buy only area and/or sell only area , where zero wicks or price action into area before trending away. 5) Forex computer does not like this imbalance and will push price action towards this one sided tradings to get buying/selling back in balance.
This imbalance happens after manipulation phase of Forex Master Chart pattern- which is mostly at end of Tokyo and/or start of London session.
Look for areas on chart with only buyers only or seller only areas (no candlesticks right and left of this imbalance)- price action will want to come back to area.
@Anbat does this happen every trading day?
Is it mostly buy or sell or depends on the day?
Is the strength of the move the same each day?
What's important to know about this particular price action in order to I'd false moves and get out of them in time?
Anbat
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@UnknownUnicorn25359856, imbalance happens infrequently in Forex.Easy to spot,not candles either right or left of current 1hr or higher candle and wicks are very important too. Please google and/or you tube this subject- you can get easy trades from imbalance.
Anbat
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@UnknownUnicorn25359856, They happen a lot with high impact news and/or big huge candles from Institution buying or selling. Sometimes institutions are moving aggressively on purpose to reverse and get more orders in imbalance areas left behind, then continue in the larger time frames direction again. good luck.
Is it mostly buy or sell or depends on the day?
Is the strength of the move the same each day?
What's important to know about this particular price action in order to I'd false moves and get out of them in time?