An imbalance occurs when aggressive buying dramatically outweighs aggressive selling at a specific price level (or vice versa). Typically, a ratio of 3:1 or 4:1 between the diagonal Bid/Ask comparison triggers an imbalance signal. Multiple stacked imbalances form an aggressive zone that price will often defend on a retest. Absorption
Application: Trade in the direction of the imbalance after a breakout. order flow trading for fun and profit pdf 2021
No 2021 order flow strategy is complete without Volume Profile. It shows you where the most trading occurred. Absorption Application: Trade in the direction of the
: Non-executed orders become less likely to fill over time, which is critical for timing entries and exits. UBA Universidad de Buenos Aires Recommended Tools and Setup Centralized Markets : Non-executed orders become less likely to fill
Look for aggressive buying or selling that creates a 3x or higher imbalance (e.g., sellers at one price).
: These reveal buy and sell imbalances at specific price levels within a single candle.