Supply and Demand Imbalance Indicator

[VP7]

I've recently been watching videos on Supply and Demand Zones and came across a video that informs the viewer to validate supply and demand zones with identifying imbalances. An imbalance is when there's a rush of supply or demand that creates a gap between candles (see attached). If there's no gap, the zone is technically not valid due to the fact that on lower timeframes the zone has already been exhausted (i cant validate this claim, it's just what I heard).

What I'd like to code, either myself or with some help from the community, is an indicator that identifies these imbalances so I can quickly and accurately draw supply and demand zones.

Is there any feedback on the validity of this approach and is this indicator even possible to create?

Thank you

 

[Chemmy]

I've recently been watching videos on Supply and Demand Zones and came across a video that informs the viewer to validate supply and demand zones with identifying imbalances. An imbalance is when there's a rush of supply or demand that creates a gap between candles (see attached). If there's no gap, the zone is technically not valid due to the fact that on lower timeframes the zone has already been exhausted (i cant validate this claim, it's just what I heard).

What I'd like to code, either myself or with some help from the community, is an indicator that identifies these imbalances so I can quickly and accurately draw supply and demand zones.

Is there any feedback on the validity of this approach and is this indicator even possible to create?

Thank you

The price action you're referring to is what most traders call a fair value gap (FVG) -- there are several great studies and conversions on this site that should highlight these for you.
Three bar gap
Fair value gaps

 

[VP7]

The price action you're referring to is what most traders call a fair value gap (FVG) -- there are several great studies and conversions on this site that should highlight these for you.
Three bar gap
Fair value gaps

Thank you. I'm greatly impressed on how response these forums are. I appreciate your help.

 

[Hardlock]

I've recently been watching videos on Supply and Demand Zones and came across a video that informs the viewer to validate supply and demand zones with identifying imbalances. An imbalance is when there's a rush of supply or demand that creates a gap between candles (see attached). If there's no gap, the zone is technically not valid due to the fact that on lower timeframes the zone has already been exhausted (i cant validate this claim, it's just what I heard).

What I'd like to code, either myself or with some help from the community, is an indicator that identifies these imbalances so I can quickly and accurately draw supply and demand zones.

Is there any feedback on the validity of this approach and is this indicator even possible to create?

Thank you

See: https://usethinkscript.com/threads/volume-imbalance-mtf.17649/