Stacked imbalances
Volume Profile Analysis glossary · Volume Profile Technicals
Definition
Multiple imbalances in the same direction at consecutive price levels within a footprint bar; a strong continuation signal.
Stacked imbalances in plain English
An 'imbalance' is a spot inside a bar where far more aggressive buying happened than selling (or vice versa) at one price — one side clearly overpowered the other. 'Stacked' imbalances mean you see several of these lopsided spots piled up at consecutive prices all leaning the same way, which is like watching a tug-of-war where one team keeps ripping the rope another foot, then another, then another. Because the momentum is so one-sided and repeated, traders read stacked imbalances as a strong sign the move will keep going in that direction.
Related Volume Profile Analysis terms
Volume Profile Analysis practice questions · Volume Profile Analysis flashcards · Volume Profile Analysis study guide