Order flow: Stacked Imbalance
Sequences of footprint imbalances that signal decisive pushes.
In the footprint an imbalance is a level where bought volume clearly exceeds sold volume (or the other way round). When several imbalances of the same type stack up on consecutive levels, it is called a stacked imbalance.
What it is for
Identifying the zones where one side pushed decisively: they often act as supports/resistances and signal the direction of the pressure.
How to read it
- Imbalanced levels are highlighted on the footprint bar.
- A stack of consecutive imbalances (three or more, say) marks a zone of stronger push.
Parameters
- Threshold %, how far one side must exceed the other to count as an imbalance.
- Mode, diagonal or horizontal comparison between bid and ask.
- Minimum volume, ignores levels that are too thin.
- Colours and stack highlighting.
See also The footprint for the basic read of the bar.