http://www.orderflows.com/oft6.html

An imbalance occurs when there are significantly more trades (orders and/or) volume transacting on the bid or offer side. This is a direct result of aggressive traders in the market. This shows an asymmetry between supply and demand.

Stacked imbalances in order flow refer to multiple imbalances that build up on the bid or offer side at subsequent price levels.

When multiple imbalances stack up on top of each other at subsequent price levels, it indicates strong aggressive tradinge. It reveals a willingness of traders to trade aggressively to lift the offer or hit the bid on one side of the market.

Stacked imbalances form visible levels of market generated support or resistance and when tested and hold indicate strong levels. If the level is never tested indicates a quick moving market and when it fails simply shows a big order going through the market.

Being able to read and trade off stacked imbalances early gives you an edge. You gain real-time insight into building momentum before it becomes visible on the price chart.

So buckle up traders, and let's dive into mastering order flow stacked imbalances!