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Volume Imbalances (VIB)

Volume Imbalances (VIBs) represent price gaps with active trading, unlike traditional gaps that show an absence of trading activity. These imbalances often indicate institutional activity and potential reversal points.

Volume Imbalance Trading Example

Understanding Volume Imbalances​

VIBs come in two main types:

  1. Bullish Volume Imbalances
    • Opening above previous close
    • Closing above previous close
    • Overlap between current low and previous high
  2. Bearish Volume Imbalances
    • Opening below previous close
    • Closing below previous close
    • Overlap between current high and previous low

Trading VIB Patterns​

Key aspects to consider:

  1. Entry Points

    • Wait for price to revisit VIB zone
    • Look for additional confirmation
    • Consider market structure

  2. Confirmation Tools

Pro Tip

Combine Volume Imbalances with Fair Value Gaps for stronger trade confirmation.

FAQ​

Next Steps​

Explore Order Blocks

Learn how Volume Imbalances align with Order Blocks

Market Structure

Master market structure for better VIB trading