---
title: 'VI & GAP Formations #smartmoney #trading'
source: 'https://youtube.com/watch?v=nlmXi-8P7ks'
video_id: 'nlmXi-8P7ks'
date: 2026-08-04
duration_sec: 111
---

# VI & GAP Formations #smartmoney #trading

> Source: [VI & GAP Formations #smartmoney #trading](https://youtube.com/watch?v=nlmXi-8P7ks)

## Summary

This video explains two trading formations: the 'VI' (volume imbalance) and the 'GAP', focusing on how they form between candle closes and opens, and how traders can use them to predict price movements. It distinguishes between the two by their shadow overlap and provides examples from Bitcoin futures on the CME exchange.

### Key Points

- **VI Formation Definition** [00:04] — The gap occurs between the closing of the first candle and the opening of the second, where shadows overlap. It acts as a price magnet and resistance zone; price is expected to reach level 0 and continue falling.
- **Bullish VI** [00:18] — Bullish VI forms on rising candles and acts as a support zone, expecting a correction and continued growth.
- **GAP vs VI Difference** [00:31] — In a GAP, the lower shadow of the first candle and the upper shadow of the second do not intersect, unlike VI. The range is determined by bodies from close to open, not shadows.
- **GAP Behavior** [00:45] — Expect the gap to close by at least 50% and then decline to continue. It acts as a magnet and resistance zone.
- **GAP in Growing Market** [01:01] — In a growing market, the gap acts as a support zone; expect the level to reach 50% and then continue upward.
- **CME Bitcoin Futures Example** [01:16] — A gap formed between trading days on the CME Bitcoin futures chart; the price reacted well and growth continued.
- **VI Example and Rebalancing** [01:31] — A VI formed between close and open; the next day price covered it completely, and upward movement continued. This rebalanced another VI.
- **Core Principle** [01:46] — Both gap and VI indicate that the market will strive to balance out.

### Conclusion

The video teaches traders to identify VI and GAP formations as price magnets and support/resistance zones, using them to anticipate market corrections and continuations.

## Transcript

the gap occurs between the closing of the first candle and the opening of the second.  In this case, the shadows overlap each other.  This is both a price magnet and a resistance zone.  We expect the price to reach level 0 and continue to fall.  That is, the operating principle is
completely identical to a conventional imbalance.  Bullish will imbalance is formed on rising candles.  This is a support zone where we expect a correction and continued growth.  On the right are diagrams with gaps.  Here you can see that the lower shadow of the
first candle and the upper shadow of the second do not intersect.  This is the key difference from will imbalance.  In this case, the range itself is determined by the bodies from the closing of the first candle to the opening of the second. It is incorrect to determine gaps solely by shadows.
We expect the gap to close by at least 50% and for the decline to continue.  It acts as a magnet for price and resistance zones. Here is the same gap, but in a growing market.  This is a support zone.  We expect the level to reach 50% and then
see more options for their formation.  Resistance zones are highlighted in orange , support zones in grey.  This is a chart of a Bitcoin futures contract on the CME exchange.  Here we see the gap that formed between the close of one
trading day and the opening of the next. Already on the next candle the price showed an excellent reaction, and the growth continued. Next we see the will imbalance.  It also occurs between the close and the opening of a new trading day.  The next day
the price completely covered it, after which the upward movement continued.  When forming this pig, we completely rebalanced another will imbalance. absolutely identical to the classic imbalance.  Both gap and will imbalance are
that the market will strive to balance out.  y