📊 What Is Volume Imbalance?
Volume imbalance happens when buying and selling pressure are not equal at certain price levels.
One side dominates — and price reacts fast.
⚖️ How Volume Imbalance Forms
Aggressive buyers hit the market → buy volume overwhelms sells
Aggressive sellers dump → sell volume overwhelms buys
Thin order books amplify the move
This creates zones where price moves without fair two-sided trading.
🔍 What It Looks Like on Charts
Strong candles with high volume
Little resistance in one direction
Fast moves through certain price levels
Often overlaps with imbalance / liquidity void zones
🧠 Why Volume Imbalance Matters
Price often returns to rebalance these areas
Shows where smart money was aggressive
Explains sudden pumps or dumps
Traders chasing these moves usually enter late.
🚀 In Short :
✔️ Volume imbalance = one-sided buying or selling pressure
✔️ Causes fast, unstable price movement
✔️ Markets often revisit these zones later
Volume imbalance explains why price moves quickly… then comes back.
