Learning goal: Understand limited two-sided trading during a fast move.
1Learn
Imbalance
An imbalance/inefficiency is an area crossed so quickly under one-sided pressure that two-sided interaction was limited.
Simple and precise definition
An imbalance/inefficiency is an area crossed so quickly under one-sided pressure that two-sided interaction was limited.
The source calls it a footprint of a strong move. Orders may remain unmatched and price may later rebalance, but a revisit or full fill is never guaranteed.
Deep, source-grounded explanation
Check one-sided movement, limited overlap and location relative to structure/liquidity.
The source logic is: The source calls it a footprint of a strong move. Orders may remain unmatched and price may later rebalance, but a revisit or full fill is never guaranteed.
Separate observation from interpretation: the numbers show only a price path; an SMC label still needs this lesson’s criteria. 2700 → 2738 with little overlap
Why it matters
Its practical importance is that Imbalance is the broad category; FVG is a specific three-candle representation.
Place in the SMC sequence
Imbalance is the broad category; FVG is a specific three-candle representation.
How it works, step by step
First, Check one-sided movement, limited overlap and location relative to structure/liquidity.
Then, Valid case: Check one-sided movement, limited overlap and location relative to structure/liquidity.
Finally, Invalid case: Not every gap or fast move is meaningful; context gives value.
Define invalidation before turning an observation into a trade.
How to identify it
Check one-sided movement, limited overlap and location relative to structure/liquidity.
Valid case: Check one-sided movement, limited overlap and location relative to structure/liquidity.
Invalid case: Not every gap or fast move is meaningful; context gives value.
After the observation, wait for subsequent behavior to confirm it.
Distinction from a related concept
Imbalance
An imbalance/inefficiency is an area crossed so quickly under one-sided pressure that two-sided interaction was limited.
Ordinary gap
Not every gap or fast move is meaningful; context gives value.
Two directional scenarios
↗ Supported case
2700 → 2738 with little overlap: Valid case: Check one-sided movement, limited overlap and location relative to structure/liquidity. In a bullish scenario, Check one-sided movement, limited overlap and location relative to structure/liquidity.
↘ Interpretation trap
2700 → 2738 with little overlap: Invalid case: Not every gap or fast move is meaningful; context gives value. In a bearish scenario, Check one-sided movement, limited overlap and location relative to structure/liquidity.
⚠ Common mistakes
First error: labeling without criteria in Imbalance
Second error: confusing it with Ordinary gap
Third error: turning an observation into an immediate entry without a model or risk control.
✓ Practical checklist
Check one-sided movement, limited overlap and location relative to structure/liquidity.
Valid case: Check one-sided movement, limited overlap and location relative to structure/liquidity.
Invalid case: Not every gap or fast move is meaningful; context gives value.
This concept is not a guaranteed entry or profit; stop, position size and model rules remain mandatory.
2See an example
Guided exercise · 1
Guided: split the sequence into observable events and write only evidence actually present in the data. 2700 → 2738 with little overlap
Check one-sided movement, limited overlap and location relative to structure/liquidity.Which observation is a valid instance in the displayed scenario? Topic: Imbalance
3Practice
Practice
Guided practice
Guided: split the sequence into observable events and write only evidence actually present in the data. 2700 → 2738 with little overlap
?↔✓
Gold V3 Open Response
💡 The emphasized element is a clue; still submit the answer yourself. Check one-sided movement, limited overlap and location relative to structure/liquidity. Separate observation from interpretation: the numbers show only a price path; an SMC label still needs this lesson’s criteria.
Assisted: write one supported and one rushed interpretation of the same sequence, then state the filter that rejects the weak reading. 2700 → 2738 with little overlap
?↔✓
Gold V3 Open Response
Expected answer
پاسخ نموداری؛ ناحیه باید از رفتار کندلها قابل مشاهده باشد.
Independent practice
Independent: before seeing continuation, record the likely reading, required confirmation and invalidation on three separate lines. 2700 → 2738 with little overlap
?↔✓
Gold V3 Open Response
Expected answer
هر دو باید بهعنوان امکان پذیرفته شوند.
What to retain
Its practical importance is that Imbalance is the broad category; FVG is a specific three-candle representation.
Imbalance is the broad category; FVG is a specific three-candle representation.
Mental model: observe → label conditionally → wait for subsequent behavior → decide only inside a risk plan.