Type of clusters Bid/Ask Imbalance



This chart type uses a new approach to highlight cluster volume imbalance. In contrast with standard Delta (which compares Bids and Asks on the same price level), Bid/Ask Imbalance allows you to highlight volume imbalances in every spread accros the price bar.

It uses a variation and compares the bid traded volume of one price to the ask traded volume of the price located directly above. It then employs an algorithm that compares the ratio of volume between the two. The main goal is to automatically highlight imbalances between the volume traded at the price being offered and the volume traded at the price being bid.

It always compares the bid price to the ask (offer) price above and shows comparison relationship.


For example, let's analyze the value of 30 ask and the value of the overweight of 350%, 350% of 30 = 105, in order for the cluster to be highlighted, it would be more than 135 (105 + 30 = 135)


Now the imbalance value is in fact a percentage ratio of the diagonally compared volumes. By default, this value is 150%, but if you increase it, e.g. up to 300%, a more substantial volume will be highlighted. To change this value, simply go to settings then choose Cluster Settings tab and set the required Imbalance Rate value.

The optimal ratio always depends on the symbol liquidity and the time frame used. Here is an example of a Bid/AskImbalance chart: