Imbalance in Forex
A clear definition of Imbalance, with practical context for reading markets and making better trading decisions.
Definition
A condition where aggressive buying or selling moves price so quickly that the auction leaves an inefficient area behind. It is a clue to context, not unfinished business that must be filled.
Practical forex example
A large impulsive candle can create an imbalance between prior and subsequent trading.
Why Imbalance matters
Understanding Imbalance helps traders interpret market information, plan decisions, and manage risk with more context.
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