# Imbalances

### Market Inefficiencies <a href="#user-content-market-inefficiencies" id="user-content-market-inefficiencies"></a>

**Imbalances**—most commonly known as **Fair Value Gaps (FVG)**—occur when buying or selling pressure is so intense that price "skips" levels, leaving behind unfilled orders.

These gaps act as:

1. **Magnets**: Price often returns to "fill" or "rebalance" the gap.
2. **Support/Resistance**: Once filled, the zone often triggers a reversal.

### Gap Types Explained <a href="#user-content--gap-types-explained" id="user-content--gap-types-explained"></a>

#### 1. Fair Value Gap (FVG) <a href="#user-content-1-fair-value-gap-fvg" id="user-content-1-fair-value-gap-fvg"></a>

<figure><img src="/files/5poHQ15LFmgOR6FNGRzg" alt=""><figcaption></figcaption></figure>

The most fundamental imbalance pattern.

* **Structure**: A 3-candle sequence where the wicks of candle 1 and candle 3 do not overlap. The space between them is the gap.
* **Usage**: Wait for price to tap into the FVG (often the 50% level) for a high-probability entry.

#### 2. Inversion FVG (IFVG) <a href="#user-content-2-inversion-fvg-ifvg" id="user-content-2-inversion-fvg-ifvg"></a>

<figure><img src="/files/eXNPJpPtOyrwGJn1jiT5" alt=""><figcaption></figcaption></figure>

An FVG that has "flipped" its polarity.

* **Scenario**: Price smashes through a Bullish FVG without stopping.
* **Result**: That failed Support zone now becomes **Resistance**. We automatically label this as a **Bearish Inversion FVG**.
* **Power**: These are exceptionally strong signals for trend reversals or continuations.

#### 3. Volume Imbalance (VI) <a href="#user-content-3-volume-imbalance-vi" id="user-content-3-volume-imbalance-vi"></a>

<figure><img src="/files/y8eRHZYdFswj8ZCjfZ6N" alt=""><figcaption></figcaption></figure>

A gap formed by the difference between the **Close** of one candle and the **Open** of the next.

* **Context**: Often seen in low-liquidity environments or during high-volatility news events.

#### 4. Opening Gap (OG) <a href="#user-content-4-opening-gap-og" id="user-content-4-opening-gap-og"></a>

<figure><img src="/files/3jXC9s4TMraJdGMAI1kE" alt=""><figcaption></figcaption></figure>

The jump between yesterday's market **Close** and today's market **Open**.

* **Context**: Critical for Daily bias. If price opens huge gap up, the OG often acts as support for the day.

#### 5. Balanced Price Range (BPR) <a href="#user-content-5-balanced-price-range-bpr" id="user-content-5-balanced-price-range-bpr"></a>

<figure><img src="/files/WeVX9DstBRcWoSBUNkSn" alt=""><figcaption></figcaption></figure>

A complex pattern where a Bullish FVG and a Bearish FVG overlap.

* **Meaning**: The market has aggressively bought up and then sold down through the same price area. It represents a "knot" of equilibrium that price respects highly.

### Volume & Strength <a href="#user-content--volume--strength" id="user-content--volume--strength"></a>

<figure><img src="/files/D03NKAcbz2MqaM5pb4Pf" alt=""><figcaption></figcaption></figure>

Not all imbalances are powerful. We use volume analysis to grade them for you:

* **💪 Strong**: The imbalance was formed with high relative volume. Probability of holding: **High**.
* **⚖️ Balanced**: The imbalance had average volume. Probability of holding: **Medium**.
* **🥀 Weak**: The imbalance had low volume. Probability of holding: **Low**. Use with caution.

### Displacement

Displacement serves as a critical filter for identifying high-probability setups. It refers to the energetic price movement that often precedes the creation of an imbalance, signaling institutional intent.

<figure><img src="/files/3uMDxn8z1ytOR7VI0yke" alt=""><figcaption></figcaption></figure>

**Usage:** Look for the colored bars (Displacement candles) on your chart. When an FVG is formed by one of these candles, it carries significantly more weight than a standard FVG. These are the zones you should prioritize for potential entries.

**Value:**

* **Confirmation**: Validates that "Smart Money" is participating in the move.
* **Filtering**: Helps you avoid false signals in choppy or ranging markets by focusing only on moves with real conviction.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.candelacharts.com/toolkits/interbank-price-action-tm/imbalances.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.