Volume Imbalance
Also: VI
A Volume Imbalance is a gap between the bodies (open/close) of two adjacent candles where the wicks bridge the gap between them. Unlike a Fair Value Gap which requires three candles and a gap between wicks, a Volume Imbalance has no gap in the wicks — the wicks overlap — but the bodies leave a price range where only one side of liquidity has been delivered via the candle bodies. Volume imbalances are PD arrays that act as support/resistance levels and are pertinent to future price action. Of all ICT's PD arrays, volume imbalances are the ones that "get used a lot" by price, but require flexible interpretation because the wicks have already bridged the gap.
Identification4
- Two adjacent candles where the close of one candle and the open of the next candle leave a gap between the bodies.
- The wicks of the two candles bridge (overlap) the gap — there is no wick-to-wick gap, only a body-to-body gap.
- Bearish volume imbalance: the close of the first candle is higher than the open of the second candle (bodies gap down).
- Bullish volume imbalance: the close of the first candle is lower than the open of the second candle (bodies gap up).
Entry2
- Use volume imbalance levels on lower timeframes (1m, 5m, 15m) when identified on a higher timeframe (daily, weekly).
- Volume imbalance can act as an inversion fair value gap level when price trades below/above it.
Stop1
- Stop beyond the opposite side of the volume imbalance range.
Target1
- Sell side or buy side liquidity beyond the volume imbalance.
Invalidation2
- Price delivers the opposing side of liquidity through the volume imbalance range (body closes through the gap).
- Requires flexible interpretation — volume imbalances are less rigid than FVGs because the wicks have already bridged the gap.
Inferred Conditions (Unvalidated)
- Volume imbalances function as building blocks for suspension blocks — a single candle framed by two volume imbalances is a suspension block (see suspension-block.yaml).
ICT Quotes
"volume imbalances out of all my PD arrays, they are the ones that get used a lot. Okay. You have to be very flexible with their interpretation. Um it's just it's one of those things because it's a it's a imbalance between the bodies even though the wicks are actually bridging the gap between the two."
"even though the wicks are actually bridging the gap between the close of this candlestick and the open of this candlestick, it's still a volume imbalance and those levels are pertinent to future price action."
Timeframes
Version History1 version
02 - ICT 2026 Market Commentary ⧹ March 25, 2026.en.srt
"volume imbalances out of all my PD arrays, they are the ones that get used a lot. Okay. You have to be very flexible with their interpretation. Um it's just it's one of those things because it's a it'…"
First dedicated extraction of volume imbalance as a standalone concept. ICT defines it during market commentary on the dollar index daily chart: body-to-body gap where wicks bridge the gap. Notes that VIs are the most frequently "used" (traded through/reacted to) of all PD arrays but require flexible interpretation. Can act as inversion FVG levels.
Notes
Volume imbalance is referenced as a building block in many other concept files (suspension-block.yaml, algorithmic-price-delivery.yaml, breaker-block.yaml, etc.) but had no dedicated YAML until this extraction. The concept is well-established in ICT's framework from at least 2022. This file captures the first verbatim definitional quotes available in the transcript corpus. Earlier mentorship content likely has more detailed teaching — update this file when those transcripts are processed.