Support Board
Date/Time: Tue, 22 Apr 2025 13:45:22 +0000
[User Discussion] - Imbalance
View Count: 427
| [2025-01-09 12:16:49] |
| User266447 - Posts: 270 |
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I have some questions regarding the imbalance: If a chart shows the difference in contracts between buy and sell (imbalance), does this difference refer to open contracts, or is it simply the percentage difference in the number of contracts between buy and sell (on a given footprint)? For example, if there is a 550% difference between buy and sell contracts, and a blue imbalance (buy) is displayed on the chart while the price moves upward, does this mean that on the displayed footprint, there are open (i.e., unexecuted) contracts on the sell side, or on the buy side? Or should this be understood differently? Specifically, does the 550% represent the difference in the number of contracts (buy vs. sell), without considering whether those contracts are open (executed) or not? A print screen has been attached - just in case. Thank you in advance. |
 Imbalance-buy.jpg / V - Attached On 2025-01-09 12:16:13 UTC - Size: 295.29 KB - 53 views |
| [2025-01-09 14:52:53] |
| binaryduke - Posts: 378 |
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You're not understanding what a footprint (Numbers Bars) chart represents. It shows the quantity of contracts that have traded. It's taking all the trades from the time and sales and organising them by: - price - time period/bucket (i.e. chart bar) - the aggressive trade side (i.e. market order buy/sell) So you are seeing the traded volume. It seems you are getting confused between the difference between the limit order book... the liquidity that is presented in the DOM - advertised limit orders that can be consumed by market orders; and volume that has actually traded that's seen on a footprint chart. Date Time Of Last Edit: 2025-01-09 14:53:43
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| [2025-01-09 15:32:19] |
| User266447 - Posts: 270 |
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Thank you for taking the time and the detailed explanation. So, if there is a 550% difference (Volume at Price chart), and a blue imbalance line is displayed on the chart (print-screen attached) while the price moves upward, does this mean that there are open (i.e., unexecuted) contracts on the sell or buy side, side? Or should this be understood differently? Specifically, does the 550% represent the difference in the number of contracts (buy vs. sell), without considering whether those contracts are open (executed) or not? |
| Imbalance-buy.jpg / V - Attached On 2025-01-09 15:29:40 UTC - Size: 295.29 KB - 39 views |
| [2025-01-09 15:40:52] |
| binaryduke - Posts: 378 |
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You're welcome. You're not understanding what a footprint (Numbers Bars) chart represents. It shows the quantity of contracts that have traded. It's taking all the trades from the time and sales and organising them by: - price - time period/bucket (i.e. chart bar) - the aggressive trade side (i.e. market order buy/sell) So you are seeing the traded volume. It seems you are getting confused between the difference between the limit order book... the liquidity that is presented in the DOM - advertised limit orders that can be consumed by market orders; and volume that has actually traded that's seen on a footprint chart. Date Time Of Last Edit: 2025-01-09 15:41:14
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| [2025-01-09 17:34:02] |
| User266447 - Posts: 270 |
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Thank you again. So, what does the imbalance line on the chart stand for? What does it represent? |
| [2025-01-09 17:41:39] |
| j4ytr4der_ - Posts: 946 |
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As Binaryduke has explained, the Footprint is showing you market orders that have traded at each price. A Bid/Ask imbalance will be the difference between what traded on the bid at one price, and the ask at the adjacent price. I don't know what "imbalance line" you are referring to in this case, but in general I suggest learning to truly understand the difference between passive (limit) and aggressive (market) trades, and how they are displayed on the footprint chart. Also just to point out... imbalances are arbitrary. A 500% imbalance is not more important or less important than a 499% imbalance. Or a 300% imbalance. Or a 987% imbalance. I would caution you against getting too sucked into their magical significance. But also, to each their own. |
| [2025-01-09 20:49:08] |
| blt - Posts: 59 |
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... @User266447 be so kind and let me know what "Comparison Method" you opted for "aggressiveness" will not be shown unless you went for "diagonal" option also you do not have to use that indicator at all...it could be set as a column in NUMBERS chart with distinctive coloring user j4ytr4der said "showing you market orders that have traded at each price"...well also executed limit orders are in but market orders make "aggressiveness" user --------- correctly stated arbitrary nature of thresholds (I set mine at 300%) ... and this much nothing out there could be compared to SIERRA CHART data feed (mighty DENALI) ... if you fancy I can show you my complete set-up; images of NUMBERS chart without indicator you are about to use all free of course ... user binaryduke was so right you need full understanding of what is in front of you wish you all the best |
| [2025-01-09 20:56:53] |
| User266447 - Posts: 270 |
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Thank you, BLT. I appreciate your support. Yes, I would be interested in seeing your complete setup. I will attach my setup in the next message (more likely tomorrow). |
| [2025-01-09 21:32:44] |
| User266447 - Posts: 270 |
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Dear BLT, Please see the attachment. Many thanks for your support and the future file (setup) |
 Imbalance_SC.Cht - Attached On 2025-01-09 21:32:19 UTC - Size: 9.85 KB - 124 views |
| [2025-01-09 21:38:32] |
| blt - Posts: 59 |
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... you are welcome https://www.sierrachart.com/image.php?Image=1736458616547.png |
Attachment Deleted. |
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