🕳️GAP and Imbalance Finder

Automatically display all market imbalances!

Identifying GAPs and market imbalances is not very complicated but it quickly becomes tedious when analyzing multiple assets in multiple time units.

That's why I developed this indicator that allows you to quickly and easily identify GAPs and imbalances.

This tool will probably be added to the Trend Candles indicator.

BTC CME, GAPs are in orange and imbalances in yellow

Market imbalances are areas where the price has not returned to fill the imbalance. Unfortunately, it is impossible to know when the price will return to these areas.

BTC CME, we can see that the price returns in these areas

The imbalance (in yellow) is an area where the price has not returned. To calculate the imbalance, you have to take 3 consecutive candles and check that the price never came back in this area.

GAPs (in orange) are also areas where the price has not returned. To calculate the size of a GAP, we take 3 consecutive candles and the middle candle must be missing. This happens when the financial markets are closed.

BTC CME

However, we can easily see that sooner or later, the price comes back very often to fill the imbalances.

When the trend is strong, it is considered that the gap and market imbalances should be filled to at least 50%. We often observe rebounds on this famous 50%.

BTC CME with imbalance in yellow and 50% line.

The yellow box representing the imbalance disappears if the price closes the imbalance by more than 50%.

In the settings, you can:

• Display GAPs and imbalances separately,

• Change their color and width,

• Change the maximum number of boxes to be displayed,

• Choose the percentage at which you consider these imbalances to be filled.

Settings