---
title: 'Imbalance — The Best Formation'
source: 'https://youtube.com/watch?v=HSeXZ-T91lE'
video_id: 'HSeXZ-T91lE'
date: 2026-08-04
duration_sec: 1160
---

# Imbalance — The Best Formation

> Source: [Imbalance — The Best Formation](https://youtube.com/watch?v=HSeXZ-T91lE)

## Summary

This video explains the 'in-balance' (imbalance) trading formation, a three-candle pattern that reveals institutional order flow and areas of inefficient pricing. The presenter demonstrates how to identify bearish and bullish imbalances, where they form, and how to use them to enter trades with high probability, emphasizing the importance of context and liquidity.

### Key Points

- **Core Concept: Balance and Liquidity** [00:16] — The analysis is based on balance and liquidity, two key elements that drive price movements. The presenter builds assumptions about future price direction and opens positions based on these concepts.
- **Definition of In-Balance** [01:12] — In-balance is a 3-candle formation that displays institutional flow of drops entering the market. It forms when there is no liquidity on one side in a certain price range, indicating inefficient pricing.
- **Optimal Use of Bearish Balance** [02:18] — For bearish setups, it's optimal to use a bearish balance after liquidity for buying has been removed. This increases the probability of successful trades. It often forms after a single top or double top.
- **Frequency of Setups** [03:12] — Such setups appear every day without exception because there is an algorithm ensuring the efficient operation of the market, meaning price must be offered equally to both buyers and sellers.
- **Entry Strategy for Bearish Balance** [03:39] — A simple entry is placing a limit order short above the maximum of the 3rd candle. To improve risk-reward, place the limit order at 50% or full fill of the balance. Stop loss is placed behind the maximum of the 1st or 2nd candle.
- **When Balance Loses Relevance** [04:54] — A balance loses relevance when it is fully filled, meaning the price reaches the minimum of the first candle. Focus on areas where stop losses are concentrated and pricing was ineffective.
- **High Probability Patterns** [05:38] — Two patterns with high probability of working out are shown. They are easy to use and appear daily. Trade based on these patterns on any market and timeframe, but always consider context.
- **Backtesting Advice** [06:51] — Before trading on a real account, conduct a test by finding several dozen examples on different timeframes, understand the context, and then apply this to opening trades.
- **Bullish Balance Definition** [07:04] — Bullish balance is the same as bearish but inverted: three candles where the range between the high of the first and low of the third shows inefficient pricing. It's optimal to use after liquidity for sale is removed.
- **Entry for Bullish Balance** [08:02] — Place a limit order buy at the minimum of the 3rd candle, or at half/full fill. Stop loss is placed under the minimum of the 2nd or 1st candle.
- **Recent Examples** [09:14] — The presenter reviews last week's charts on 15-minute timeframe, showing obvious opportunities for short positions based on imbalance formations.
- **Analysis of Weekly Plan** [10:47] — The presenter shares a plan that worked out, relying on factors like manipulation of highs in premium market and formation of liquidity pools for sale.
- **Example of Short Setup** [11:18] — A 15-minute chart shows an aggressive update of old highs, forming a major block on hourly and an imbalance inside it. Optimal to open short at this zone.
- **Importance of Timing** [12:58] — Time is crucial; focus on London and New York openings for better opportunities. Weekend trades have reduced volatility and lower predictability.
- **Handling Weekend Trades** [13:13] — Processing a position may drag on, and the next day might offer better entries. The presenter avoids trading on weekends due to reduced volatility.
- **Liquidity Removal and Entry** [14:07] — After updating a high, liquidity for purchase is removed, and price may fill bearish balance. Open position after updating high, with stop loss behind high of 1 or 2 candles.
- **Example of Successful Short** [15:13] — Price updated the maximum of the day, then aggressiveness began downward. Two opportunities to open short when price returned to balance.
- **Consolidation and Missed Trade** [15:40] — The next day, price consolidated between balances. The presenter missed a trade due to low risk-reward and end-of-day timing.
- **Similar Pattern Next Day** [16:22] — The next day, price updated a short-term high, offering a short entry. Stop loss behind max of 1st or 2nd candle, targets at equal lows and lower balance.
- **Why Not Wait for Full Fill** [17:19] — In most cases, price reacts from one problem area. Lower timeframes can show if there is inefficient pricing, indicating whether price will strive to that area.
- **Trade Management Example** [17:48] — The presenter opened a short with stop loss behind max of 2 candles, target at marked equal lows. After filling the balance, the fall ended and a small pump occurred.
- **Using Lower Timeframes** [18:30] — Lower timeframes help determine where reaction will occur. Instead of four-hour balance, hourly balance is used to wait for price to visit that area before reversal.

### Conclusion

The imbalance formation is a powerful tool for identifying institutional order flow and high-probability entry points. By understanding context and using lower timeframes, traders can effectively apply this pattern across markets and timeframes.

## Transcript

in today's video, we'll talk in detail about in-balance, some kind of formation, what it looks like, where it forms, and how to use it. where it forms, and how to use it.
change significantly after you personally test what I'm about to talk about. My analysis is based on balance and liquidity because these are two key elements
elements due to which the price falls or rises. Based on this, I build my assumptions regarding the future assumptions regarding the future price direction and open my positions.
Even if you're an ardent fan of the technical analysis tradition and don't believe in this, you can go to the chart and manually check that it works better than everything you've used before.
Before we continue, I recommend subscribing to my Telegram channel. Here I write, brother, reading analytics and thoughts on the market. You'll find a lot of useful and interesting information for yourself as a trader. Follow the link in the description
below the video. In- balance is a 3-candle formation that displays the institutional flow of drops entering the market. Its formation occurs due to the fact that in a certain price range there is no
liquidity on one side. In other words,  There is a seller or buyer Turk, other words,  There is a seller or buyer Turk, To determine it, we must see the formation of three candles, where the minimum is the
first candles and the maximum is 3 candles will display the range in which the price was offered ineffectively. That is, in the blue square we see turbo offers and liquidity for sale, respectively, the price for buyers was
offered unevenly and in order to effectively balance this range, at some point the market will return to it, which will give the opportunity to will return to it, which will give the opportunity to anyone who wants to buy in this range
for a knife. This moment will provide an opportunity to open a short position. If you are bearish, you do not need to look for such ineffective areas everywhere. It is optimal to use a bearish balance
after removing liquidity for buying. This will transfer a high probability of processing your transactions. Usually, you will find it reforming a single over, as shown here,
or when a double top is formed, as shown in this diagram. This does not mean that their balance can only be applied in this context. But
for starters, while you are just starting to use it, I recommend limiting yourself to only this. Then you will begin to have ideas on how to use it in other situations.
Such setups appear absolutely every day without exception in such a  Pricing will always be the same logic because there is an algorithm that ensures the efficient operation of the lens,
that is, the price must be offered equally to both buyers and sellers. How to enter a position based on their How to enter a position based on their balance and where to place the floor? A
simple option for opening a deal is placing a limit order short above the maximum of 3 candles. It's very simple, but this way you will definitely not miss a deal. I often do exactly this when such an
entry results in an acceptable risk-reward ratio. But in most cases, before the reversal, you will see that the price fills their balance halfway or completely.
Therefore, to increase the risk- reward ratio, you can place your limit order to sell at 50 percent of their balance or at its full In order to accurately determine how much the balance will be filled before
the reversal, you can go to lower timeframes and there you will see the exact area where the price will strive when we reach the chart. I will show you what it will look like. Stop loss, regardless of your
entry point, will always be placed behind the maximum of the first candle or behind the maximum of 2. I will immediately answer the popular  The question is when does their balance lose its relevance of being
You can't expect it to react in the future. By " fully filled," I mean reaching the minimum of the first candle. When analyzing a chart, you should focus on the area where
focus on the area where stop losses are concentrated and where pricing was ineffective. This is where the price will always strive to balance the price and activate the stop loss.
When you begin to analyze a chart with such paradigms of market perception, you will begin to see traces of smart money and you will have enough opportunities to have enough opportunities to make a profit on a series of transactions.
These schemes show two patterns that have a very high probability of working out. They are easy to use and appear every day without exception. You can trade the Turk based on it on any market and timeframe. This will never
lose its relevance and will always bring positive results on a series of transactions. When forming, you need to please withdraw both liquidity for purchase and the subsequent breakdown of the structure.
If, after withdrawing liquidity for purchase, there is a fall in wialon, then I will not be the opposition. It is important for us to see a sharp drop, on which the structure will be broken and a bearish balance will be formed.  There
will be zones of interest from which a short position will be opened. You should trade based on only the cartridges without taking into account the context, because without taking into account the context, because this will greatly reduce your win rate. Try
to look for such patterns and only when, based on higher timeframes, you are bearish and open such trades, you will see open such trades, you will see positive results in the shortest possible time.
Before practicing on a real account, first conduct a test, find several dozen examples on different timeframes, understand the context and how to work with them, and then
apply this to opening trades. Now, with the topic being my balance, it is the same as a bearish balance, determined by three candles,
the range between the high of the first candle and the low of the 3 candles and the area where the price was offered unevenly to buyers and sellers. In the blue square, we see only buyers, that is, so much liquidity was offered
for purchase. Rinat will strive to return the price to to balance it, which will give the opportunity to anyone who wants to sell in this range. It will be optimal to use a bullish balance when the price
removes liquidity for sale before its formation. the moment when the price returns to its partial or complete filling, you can place a limit order form at the minimum of the third candle. This is
the easiest way to enter, so you will definitely not miss the so you will definitely not miss the opportunity in such a situation. Depending on where you enter from the minimum of the 3rd candle, or when it is
half filled, or when it is completely filled, the stop loss will always be placed under the minimum of 2 or 1 candle. Based on these cartridges, you can trade effectively. Use a trained
balance by analogy with bears. Here we see examples that they use balance when forming a single piggy bank or when a double bottom is formed. It is
upward movement. We will cover it, a balance will be formed by it, and after the structure is broken, we will use it to enter a trade. Read growth, the price will most likely return to its partial or complete
filling, and at this moment there will be the best opportunity to open a long position. When you start backtesting, and this simple pattern, you will realize that this is your
simple pattern, you will realize that this is your main tool when analyzing the chart. Now let's look at a few recent examples. For this, let's take last week and see how much there was.  There are obvious
opportunities for opening trades based on the information I just The minimum timeframe I will use is 15 minutes, but if you use is 15 minutes, but if you look at a lower timeframe, you will
opening trades based on this pricing. It is quite simple to decide in which direction it is more important to work when opening a new week in this range. Highs are being manipulated
in this range. Highs are being manipulated in the premium market and large pools of liquidity are being formed for sale, which will be the main target for a future fall. We will see signs of distribution and, with a
high probability, I assume that when a stop loss is activated for sale, which is highlighted, my dear, there will be increased volatility, that is, an impulse fall.
that is, an impulse fall. Think about what the goals of this fall are. Activation of a stop loss for sale is a price rebalancing. We will wait for a fall to these values, and here a reversal may occur and the
upward movement will continue. Therefore, until the price reaches this balance, we will look for bearish formations to open a short position.
I shared my thoughts regarding this pricing on my public telegram channel and at the moment this plan has completely worked out the main factors on which I relied in my I have already voiced the analysis above, there is
nothing complicated here, after a little practice you will be able to use the balance very simply to determine the general direction of the price and find the best opportunities to open trades. Now let's look at the obvious
opportunities for opening a short position that were in the previous week. This is a 15-minute DM frame and here you can see that the [ __ ] update of the old x began
aggressively and the fall on which the major block was formed on the hourly timeframe and also their balance inside it is the area where our zone of interest acts. Here it will be optimal to open a short
position. Why does this work this way and why should the price range? Simply because buyers have a fixed interest in a certain price range. They
do not buy an asset or are ready to buy it only at a certain price to make a deal with another organization or company. This is how this business works and there is nothing in common with
technical analysis tools. The mustache of this balance formation. The price almost immediately returned to its partial filling. We could place a limit order of short for a maximum of 3 candles. ASU requests
were placed above 1 or 2. The priest poet in the corner would have closed such a position for everyone. They can, but I try such things.  If I were to skip trades out of two, this
opportunity arose on the weekend, and I was trying not to trade at that time because such days are characterized by reduced volatility. The charts become less predictable, and the mathematical expectation of the traders is significantly reduced.
Time is crucial for a trader because with this we can volatility, therefore, then there will be better opportunities to open trades and quick processing, as I expect. In
this case, I always focus on the opening of London and New York. you should understand in advance that processing such a position, at best, can
drag on for a long time, and most likely, the next day when new ones open, and during next day when new ones open, and during the week you will see a position better than the one that was already open. Look at what happens before the
opening on Monday. The price before the update and this large pool of liquidity for sale reverses. Such pricing usually occurs before aggressive development in a downward
direction. You see a short-term increase on the faucet will be removed. Liquidity for purchase in the premium market will also be partially or completely filled with bearish  balance,
and only after that will it begin to aggressively and fall when the price returns to fill this balance. We can open a position after updating this high, and a stop loss will be placed behind the high of 1 or
2 candles. When you conduct a big test, pay attention to such situations and you will see that this happens absolutely always. I will have my own videos, I have already
shown such examples many times, but also be sure to consider what time it happens. We want to convince the withdrawal of this liquidity and reaching the zone of interest in London or New York. This will be the best opportunity to enter
because with a high probability, immediately after this, aggressiveness will begin and immediately after this, aggressiveness will begin and development in the expected direction.
maximum of the day, after which aggressiveness began and development in the downward direction, which was expected based on the previously voiced factors. In two cases, when the price returned to balance the price, you had the
balance the price, you had the opportunity to open a short position. Let's look at the following examples. The opportunity to open another ford position appeared the next day. The situation is very similar to yesterday's, but
here we see that towards the end of the day, the price began to consolidate between this black balance and this bearish one.  Is it worth considering opening a position at the moment when the price has updated the maximum of
this candle and partially filled the balance with it? when opening trades, you will have too low a risk-reward ratio, which
trades. Also, keep in mind that this trade will be opened at the end of the day, so you should not count on any development before the opening of the next daily candle. At
least, I missed such a move because I expected that at the opening of the next day, the price would behave in the same way as yesterday, that is, a short-term high would be updated, and then I will
short-term high would be updated, and then I will consider opening a short position and see what happens at the opening of London. yesterday, even the timing of these movements completely
coincides. After updating this short-term high, you have opportunities to open a short position. The soup will be open a short position. The soup will be placed behind the maximum of the first candle, or the 2
main targets will be these equal to the ILE and the balance of the lower. You may wonder why we do not wait for the bearish wait for the bearish balance to be filled, which is located and everything is better
simply because in most cases, the price gets a reaction.  from 1 problem area, which in this case will be marked balance, and we can also go to the lower timeframes and see that there is no
inefficient pricing here, this means that most likely the price will not strive to this area before continuing the fall
filling the hourly balance with it. I opened such a position, the stop loss was set behind a maximum of 2 candles, the main target was the marked equals, and target was the marked equals, and when removed, the transaction was completely closed as a
result, after filling what would be the balance with it, the fall ended and a small pump occurred where the bearish balance was filled, which was formed bearish balance was filled, which was formed where we analyzed the second example,
these are absolutely the same opportunities for opening positions as in the previous two examples. I will not analyze them because here I will not analyze them because here the logic of these positions is 1 floor. By the way,
regarding lower timeframes, with their help we can more accurately determine where the reaction will most likely occur, therefore, here, instead of the four-hour balance, the hourly balance is marked with it inside it and we
will wait for the price to visit exactly this area before the reversal. in  balance, but this is the basis that will allow you to use it correctly and effectively
in the future. I will definitely release a second part on this topic. If you learned something new in this video and you liked it, then like it and write a comment because this will greatly help promote
this video. And also, don't forget to subscribe to my Telegram channel. The to subscribe to my Telegram channel. The link is in the description.