Volume Imbalance Study

Settings

This study requires some setup. “Volume At Price Threshold Alert V2” study must be on the chart twice. One configuration needs to highlight Bid price level imbalances and another study configuration needs to highlight Ask price level imbalances. See https://www.sierrachart.com/index.php?page=doc/StudiesReference.php&ID=386 . Once these 2 studies are on the chart, the Effective Volume Imbalance Study Input IN5 and IN6 need to have the study ID’s set.

Subgraphs

VolumeImbalanceUpTop, VolumeImbalanceUpBottom, VolumeImbalanceDownTop, VolumeImbalanceDownBottom,

Detects volume imbalances using configurable threshold settings (default: 3 minimum imbalances required). These imbalances identify price levels where bid/ask volume shows significant disproportion, indicating potential areas of supply/demand imbalance. Imbalances don’t need to occur at adjacent price levels and can span across different areas of the bar, making them versatile for identifying institutional order flow patterns.

SustainedImbalanceStartBid, SustainedImbalanceStartAsk,

// 10 sustained imbalances

Identifies imbalances occurring at identical price levels across two sequential bars, indicating persistent supply/demand imbalances. These sustained patterns suggest strong institutional interest or order flow concentration at specific price levels, often marking significant support/resistance zones where repeated volume imbalances occur. This persistence frequently signals areas where price may react strongly in future interactions.

StackedImbalanceBullish, StackedImbalanceBearish,

Detects clusters of 3 volume imbalances at consecutive adjacent price levels within a single bar. These stacked patterns indicate concentrated supply/demand zones where multiple sequential price levels show volume imbalances, creating strong directional bias areas. Stacked imbalances often signal institutional ladder orders or significant algorithmic activity, making them powerful indicators for continuation moves or major support/resistance levels.

SequencingBullishTop, SequencingBullishBottom, SequencingBearishTop, SequencingBearishBottom

Identifies patterns of sequentially increasing volume at consecutive price levels within a bar. In bullish bars, examines ask price levels for progressive volume increases. In bearish bars, analyzes bid price levels for sequential volume growth.

The configurable required levels setting (default: 5 levels) determines how many consecutive price levels must show increasing volume to trigger the pattern. This sequencing indicates aggressive institutional order flow moving through multiple price levels, often signaling strong directional intent and potential continuation of the underlying trend.