Imbalance - Bootcamp Ep.4

Okay. Hello and welcome to episode 4 of

the technical boot camp. This week we

are talking about the topic of

imbalances. Now imbalance is a really

strong concept that gives you more

clarity around market directions and act

as magnet price areas that when you

understand how to identify imbalances.

You'll be able to find areas the market

is likely to be drawn into that before

you wouldn't have quite spotted. So, in

this class, we're going to go through

the theory of imbalance, why it happens,

how to identify and plot imbalances

correctly on the chart, and how to use

these correctly plotted imbalances to

identify strong entries and targets,

avoid premature trades, and make sure

the trades you get into are the highest

probability and the highest riskreward.

So, with that said, let's jump into the

class. Okay, so a quick warning before

we get into this class. This will not

make full sense to you unless you've

watched my supply and demand and market

structure videos which is episodes two

and three of season one of the boot

camp. Okay, so the previous episodes to

this. If you haven't watched those, go

and watch them now. Then this video will

make more sense. If you have, good.

You're set up to understand this. Okay,

so today as you know we're going to talk

about imbalance. Now imbalance we very

briefly covered on in the previous

class. It is an open price range between

a demand zone or a supply zone and then

where price is currently trading at the

end of a leg of price action. Okay. So

in the example we have marked on the

chart here, our imbalance would be this

run in price. It's basically the push

from this demand zone and then the

market hasn't retested the demand zone

yet. So we have an open price range

between these levels which becomes our

imbalance. All right. Now, the way that

we generally want to trade imbalance to

give it you from a very surface uh level

view before we go deeper into it is we

want to see imbalances filled. Okay? So,

we're going to be utilizing imbalance to

work out where the market might go to

next, which can be used for entries. For

example, if we see an uptrending market

like this, we have a demand zone open

like this and we've created an imbalance

in the market like this. Then we see

this imbalance as a high probability

kind of price range for the market to

draw back through to trade towards the

demand where we would then look to take

an entry. So when we get into this

range, we would be looking to take an

entry for a buy which would take us into

new highs. Okay. So that is the first

way we use imbalances. When we identify

one in line with the direction that we

want to trade, we use it to basically

await the market's return through the

imbalance and then we buy from there. So

it stops us in that right from

prematurely entering trades such as

getting into a buy up here. If we see

the imbalance is open, we know the best

thing we can do is to wait. Now another

use case for imbalance is for targets

for trades. Okay. So if we take a look

at this bit of price action, which

obviously if you watch the previous

classes, you'll understand is an

uptrend. Well, if we see that, for

example, we'll keep it broad for now,

but you'll see examples of this on real

charts. If we see that prior to this

movement, we had a area of supply, let's

say, uh, up here, and then we had a big

selling move and then we started to

shift that trend to the upside, well,

this whole price range here is actually

going to be then imbalanced because we

have a supply zone, this one here, that

hasn't yet been filled by price on a

return into that area. So we can

actually utilize this imbalance that we

have to take a trade up towards it. All

right. So they're also good not just for

entries but for identifying where to

take the market to. So we can use this

imbalance here to understand if we want

to buy it's going to be from this point.

And then we can use imbalances over to

the left previous imbalances that are

still open as high probability points to

target. Because if we know there's an

imbalance here, it's very likely that

the market will trade through that open

price range to fill that area for us to

trade from. Okay? So, it's basically a

way of seeing where the market's going

to go next. And we use this information

to basically find entries for trade

um and also to find targets for trades.

Okay? So, that's what imbalance is all

about. Where is the market going next?

Now the theory behind imbalance and why

these things work comes down to that

battle between buying and selling that

we saw previously. Okay, in the supply

and demand class and in the market

structure class, we discussed how these

movements, the protrend movements that

create breaks of structure and come from

areas of supply or demand. So in this

case, this is a bullish move. So we come

from demand, we have a rally higher,

breaking the high. This is an impulsive

move and what it indicates while being

an impulsive protrend movement that has

created a new uh leg of structure inside

of an uptrend. What it indicates is that

buying is clearly in control from this

point all the way up to the end of the

move. We know that buying is in control

because the price has appreciated

without resistance from sellers. And we

know they're in control cleanly because

they've pushed through a previous high.

Again, showing that buyers here are

stronger than buyers at any other point

previous in the range. Okay, so we have

strong buying and weak selling. Now,

when we discussed demand, we said that

this was like auction theory. Okay, and

to explain this to you just real quickly

again, all a demand zone is is a

discount price zone. So, it's two price

levels, which is basically going to be

from the low 161.52 to the high 161.61.

That is a price range that was seen

previously when the buying here took

place last time as a very good price to

buy this asset. Okay, so we've seen a

lot of people saw this as a good price

to buy the asset. They bought the asset

in massive numbers to the degree that

they overrote any pressure from sellers

and the market went and made a new high.

Now, this stands true. This is a

discount price zone. So, with that in

mind, and very much like what we

discussed in the previous class

regarding why demand zones and supply

zones get retested. Well, we have here

an open price range that isn't seen as

such a nice price price to buy this

asset. we know that any buyers would

much prefer to buy this from a discount

than at the current market prices. So

when we create that imbalance by

creating the impulsive drive higher, we

basically have a a good open range here

for the market to return through to

trade into the discount price area

because that's going to entice buyers a

lot more than if you know they were to

just buy directly at the high at a

premium price. So, an imbalance is

basically just an open price range

created by impulsive buying or selling

that essentially shows us where the most

premium and most discounted price areas

are to buy and sell from. So, here this

supply, this push down created a premium

price range that sellers would love to

sell at again. Now that we're trading

down here, it's less likely that we get

significant selling coming in than it is

to get significant selling coming in

from a premium price level. And then the

same on this buy side. Now that we have

this impulsive drive higher, proving to

us that this was seen as a discount or a

fair price to buy the asset. It's much

more likely that if we get back to this

point, we see massive amounts of buying

than it is to see massive amounts of

buying at what traders will see as a

premium price. Okay? So, you have to

think just behind the scenes of what

we're actually seeing in markets. It's

more about where is the good price to

buy or sell an asset. That is where the

high probability and biggest

opportunities will come from because

that is where the majority of buying

will take place, right? Would you buy a

car for $20,000 if there was a good

likelihood that you may be able to get

it very soon for $12,000? Probably not.

You'd wait and see if it returns to that

price that you like. And if it does, it

comes into that discount price range.

Well, now you think, wow, this is a

deal. I'm going to buy it up in mass.

Okay? And that is what we see in terms

of supply and demand in the markets. And

that is what imbalances just help us to

identify. When we see an open price

range, we understand there is a high

likelihood at some point in the near

future the market will return through it

to trade into a discount or premium

price area also known in this case as

demand zone or a supply zone. Therefore

allowing us to number one use those

areas as entries and number two use

those areas as targets. And number three

the final thing is just simply to avoid

taking bad trades. Okay? Instead of

buying up here when you understand

imbalances, you will almost always be

taking your buys down here. Instead of

selling down here when you understand

imbalance, you will almost always wait

for the market to return to that premium

price area where that bigger higher

riskreward, higher probability short

setup can commence. Okay, so that is the

basic concept of imbalances, why they

take place and what they help us to do.

With that said, we'll go a little bit

deeper into this just now. Okay. So to

identify an imbalance that's the first

thing of course we need to know. We are

looking for simple open impulsive price

ranges. It can be made up of one candle.

It can be made up of multiple candles.

But there is a simple rule to identify

an imbalance and we'll go through that

just now. Now the first thing with

imbalances is if we are looking at

protrend imbalances i.e. this market is

in a downtrend. We want to determine

which way this market is then going

which in this case due to this break of

structure and the continual formation of

lower lows and lower highs. This is a

downtrending market. So we would be

looking to sell from this market and we

would be looking to sell from supply

zones. Okay? So we don't look at demand

zones in this. We don't look at buys. We

look at sells from supply zones. So if

you were up to date with the boot camp

so far, you'll understand the supply

zones I'd be looking at would really be

this one. This is the last candle before

an impulsive candle. Okay? And then this

one here, which is the last candle

before the impulse. Now if you remember

what we discussed in supply and demand

as well, we know that this one is the

extreme zone. So the best way to

approach this can be sell limits. The

extreme zone is simply for anyone who

does not know or needs a reminder the

furthest zone in the current leg of

price action from where price currently

is. Okay, so it's like the final supply

or demand zone if you're faced with

multiple supply or demand zones. So we

have this zone here which obviously in

this leg of price action is actually

kind of in the discounted area. Not

great for selling to be honest at this

point, but it is still a valid supply

zone. And then we have the extreme zone

which is this zone here. And if you take

a look previous to this, there is no

extra supply zones. They've all been

filled. Okay? Now, you might be

thinking, why would this not be a supply

zone? And well, that's simply because

the imbalance no longer exists. Okay?

And this is how we begin to identify the

imbalances in the market and which zones

are good and are bad. So when we are

looking at a supply or a demand zone, we

want to make sure that it has imbalance

into it. If it does not have imbalance

into it, it is not something we would

look to trade from. So if the market was

to return to this top zone, we would not

want to sell from there, okay, from

inside of this zone because it's already

been hit. So we created supply. We had

an impulsive move away, but then the

market came back through and we see this

wick here. So from this candle and this

candle the wick fills the open impulse

that was created and that would be where

the imbalance was. So once this wick has

return to hit this area there is no

longer any imbalance in this supply.

Okay. If we take a look at the next

movement however this supply zone we see

that we have a wick here. So this candle

then we have an impulsive drive lower

and then the next wick is actually here.

So that creates we'll draw it as a box.

Here to here is an open imbalance.

Right? This wick does not fill the gap.

This wick does not meet this wick. So

the space between there is the

imbalance. Right? So let's call that

imb. And what we will do is we'll make

this gray for now. And we'll just keep

in mind that gray boxes will be used to

mark imbalance. Okay. So with this

imbalance remaining that means this

extreme supply zone is still open and

still probable to be retested. So if we

were looking for a sell from where we

are, we have of course this imbalance

and this extreme zone to consider. Now

the reason that this lower supply as

well is still valid is because there is

again a remaining imbalance. If we take

a look at where the wicks meet the

wicks, we've got a wick here. We have an

impulsive candle still not filled by the

wick and we have the wicks previous to

it still not filling this wick.

Therefore, we have another imbalance.

Okay. So here we have two supply zones,

two imbalances. There's a supply zone up

here that's been filled. So that is now

written off. We don't focus on that

anymore. And what we would do is

basically use these imbalances to

understand the market is highly probable

to come back to retest one of these

areas before we sell. Okay. Now

obviously as we've discussed, we like to

sell from premium price areas. With this

zone being so close to price, we would

be less interested in this one. And with

the remaining imbalance that sits above,

we still have basically a magnet price

area that the market is likely to be

drawn through to sell from the extreme

zone. So in a case like this, we would

heavily focus on the extreme zone and we

would focus a lot less so on this lower

zone because there's still imbalance

remaining into the higher point, the

extreme zone that is likely to basically

draw price in like a magnet. Okay, so

what we're going to do is now run the

market forward. See what happens. You

see here up to this point, we still have

imbalance open. Now with these new blue

candles, the imbalance is of course

shrinking. We are getting closer to the

supply zone, but again, we still don't

anticipate any notable movements until

the full imbalance is filled. So, if

you've learned ICT, uh there's a take on

imbalances. It's basically imbalances

remade um to to look like a new concept

called FVGs, right? It's fair value

gaps. The idea with those is you trade

out of imbalances. So, you would sell

like now for some reason. To me, it

doesn't really make much logical sense.

kind of goes against what um you know

this whole thing is showing us. But if

you trade FVGs or you know FVGs, this is

the kind of original way of doing it

before FVGs was created to sound smart.

Okay. So basically what we're looking

for is not a trade out of the imbalance.

We are looking for a full fill of the

imbalance into there and then we look

for a sell once the zone has been met

and when there is no more remaining

imbalance. And if we think about why

this is just you know dial it back to

the supply demand class supply zones

show discount price areas where

significant selling has taken place

previous as indicated by the initial

impulsive move. So therefore if we can

come back between these two discount or

in this case premium price levels. We

are then likely to see new selling step

in from what is seen as a proven premium

price to sell from. Okay. So the

imbalance shrinks with every candle that

pushes close to the zone. But until the

zone is fully retested and the imbalance

is completely closed, no trading is to

be done. So there we go. You can see at

this point just here, this wick, this

has filled the remaining imbalance. Now

that there is no imbalance, the market

is what we call efficient. And we're

going to talk about efficient ranges in

the next class. But this becomes the

point of which you would then want to

sell from because there is no remaining

imbalance in this entire leg of price

action from the high to the low.

Therefore, this is the most probable

point for us to make the next leg of

bearish price action, which would give

us a clean trade from the supply down to

the low. Okay? Because we are expecting

the market to continue the downtrend now

that all open imbalance has been filled.

So now the price has hit the premium

price range, the premium selling area.

We then get a new influx of sellers from

the area of supply that brings the

market to a new low and therefore fills

a profitable trade of around 5.6R. Okay,

so that is how we utilize imbalance or

how we identify imbalance and then we

always just have to think about the

story behind the market as we've done

here working out why would we not focus

on the lower zone. Why do we focus on

this one? Well, that's because the

imbalance is large. It's still open.

This is the most premium price point in

the range. This one although yes, it is

still a valid supply with imbalance,

it's more of what we would call an

inducement. We'll get into that in

liquidity. Um but to explain it simply,

it's still kind of a discount price,

right? It's a pretty low price in

comparison to if we were to see a full

reversal and retest of the full higher

extreme zone. That's going to be the

more premium price area for selling to

take place. So there you go. That is a

quick visualization of how to mark

supply and demand in line with

imbalances. To identify imbalance,

you're pretty much always going to begin

with a supply or a demand zone, which

therefore means you need to begin with

identifying which way the trend is

going. And when you have the supply or

demand zone, so just to show you very

quickly, when you have that in this

case, supply marked, you are looking for

an open price range where wicks do not

touch wicks, candle bodies do not touch

candle bodies. There is just an open

push in price and there is no fill of

that just yet. That becomes your

imbalance. And then when the imbalance

is filled, that is your trigger point to

get you into a trade. Okay. Now, as you

can see, obviously with the imbalance is

highly probable to be filled. We don't

have to just use this for entries. We

can also use this for targets. Now, it's

more contextual. You don't want to just

counter trend everything. But, for

example, if we were to be given the

opportunity to make a buy from here,

this becomes a very, very simple target

because we see that imbalance above. And

we know that's likely to be filled,

which allows us to take a buy from down

there up to that point. And we know for

a fact this is the perfect place to get

out of that trade because the imbalance

will then be completely filled and

redundant. Okay. So in this case, I

would say there was no opportunity to

make a buy here. But in some

opportunities, as you will see, there is

room for us to actually buy through

imbalance ranges towards open supply or

demand zones before we shift that bias

and go the other way. Okay, so let's

take a look at an example of this in the

market. Then this is a market that is

trending to the upside. Now, we're on

UJ, so we're kind of into blue skies

really. There isn't too much in the way

of using imbalances as targets for this

that we would want to do. But if we

built the buyers to buy and then we saw

this pattern in the market which you all

know as the standard confirmation

basically we have lower lows and lower

highs. We've seen the initial shift into

higher highs basically confirmed here.

Now we haven't seen it confirmed

perfectly at this point because of

wicks. But when we make this large

bullish closure here we basically have

then the understanding that we likely

want to buy this market. We use

imbalances then to identify the best

point for us to actually make these buys

from. We can see that this impulsive

candle has created a large imbalance

between the wick here and then where

price is currently trading all the way

up here. Okay. So, if we want to buy,

are we going to market execute from

here? Are we going to market execute

from here? Are we going to buy up here?

No, we are not going to do any of that

because we would get a subpar entry.

Okay? If we were to place longs there,

get into a trade, stop loss would either

have to be in an incredibly dangerous

location. And by the way, if your stop

loss is inside of an imbalance, you're

basically asking to get destroyed. So

our stop would have to be at a minimum

down here and then maybe even under this

low. So the riskreward on this is really

not going to be all too good. So if we

want to kind of get the best possible

entry where we identify the imbalance

and then we take a look at where that's

going to lead us into. In this instance,

our demand zone is going to be from here

through to here. And there is a clear

imbalance into this point which makes

this a high probability point for us to

then buy from. Now, there is another

point as well. If you take a look here,

we've actually got some imbalance that

leads us into this point. And we could

call this one the extreme because this

is, of course, the furthest from price.

However, in this instance, if we take a

look at the size of the imbalance that's

been created, we've had a tiny imbalance

created at this point. Then, we had this

kind of reaccumulation, which is a

sideways candle, uh, indecision candle

with large wicks up and down. Then, we

had this very clear impulse away. And

this is still in what we would classify

as a discount price region. You know,

it's quite far away from where price is

currently trading. So factoring the size

of the impulses that have been made, we

can see that this zone created the

largest impulse. Therefore, this zone

saw the highest amount of buying. Okay,

the highest consideration from buyers

basically. So we could look at this zone

as a viable point to buy from. If we

wanted to be super safe about this, we

would go stops under the low entirely. I

would be completely fine with that way

uh executing trades here. So, what this

could look like, thanks to the imbalance

we've now located, would be a buy here

and a stop just under this low. The more

aggressive take would be a stop just

here, which would be fine. Again, this

stop is in an imbalance, but it's from a

very notable buying point, which created

a massive impulsive push higher. Okay,

so that would be okay in most cases.

We'll keep it very simplified for here,

though. And then, if you just wanted to

look for a let's call it four target,

why not? Uh, if you wanted to look for a

4% return, your trade would look

something like this. Okay. And what

we're doing here is we're seeing

basically the shift in structure which

really come through here. And now we are

identifying imbalance which is that open

price range to find the best possible

point for us to buy from. And we can

factor in here some of those other

lessons about momentum

and about impulsive moves and the real

you know true utility behind uh supply

and demand zones which is that they are

showing us areas of significant buying

or selling intent. And we can decipher

from that that this zone is less

interesting than this zone because this

zone created a much more significant

bullish move up. So that would pretty

much lock us in with this being our

trade setup. And then if we let the

market run forward, you'll see exactly

why we don't buy here. And we wait for

those imbalances to be filled cuz as you

see that we have this slow pull back

down. And as soon as that area of

imbalance is filled and the demand zone

is retested, we're back in that

discounted price range. And that sets us

up with a very nice opportunity to catch

a very healthy profit. Now, compare that

to buying without an understanding of

imbalances. If you were buying from the

market up here, you're looking at a 1.2%

return. Whereas buying down here with

the safest stop is actually going to be

3.75% return, which is obviously a much

healthier trade, almost 3x. So, that is

how we utilize imbalances to identify

where we should and shouldn't be getting

into trades. Now, we're going to take a

look at an example where imbalance, if

you don't understand this, can be rather

tricky, but if you do, is actually a

very, very good strong thing to know to

help you to take good trades and avoid

bad ones. Okay, so we're looking at

basically a downward piece of price

action right now. So, we'd be looking to

sell. If we take a look at from the high

of this movement, we have our first

supply, which is basically this blue

candle. We extended to the high of the

gray candle because of the wick that's

been retested. Then, we take a look at

the gray candle here. We see a new

imbalance formed there that's been

pulled back and retested. Then we have

these two points. So we have this one,

this large indecision candle just here

before an impulse away. And then just

beneath that, we have this more notable

one, which is a more confined indecision

candle before a larger, more significant

impulse. So taking a look at this one,

we had an impulse, but it didn't break

any structural points until we created

this new supply before we had a very

strong bearish impulse down. So, of

these two zones, if we think about that

battle between buying and selling, this

one is stronger than this one because

this one didn't create any meaningful

impulses that broke structure. This just

kicked off a small drive before a new

consolidation and therefore a more

significant impulse. So, of these two

zones, this would be the one that we

would be interested in selling from.

Now, beneath that, we have, and this is

where people get caught out. This is the

thing I'm showing you. We have a supply

zone here, which does have imbalance

from it. And people would picture this

as a point to sell from. Now, this is

what we call inducement. We're going to

get into inducement later in the series.

It's important, but the time is just not

right just yet, but you will understand

at a base level what this is in just one

moment. So, we can see an inducement as

basically a trap. It's a zone that looks

good, but because of things like

liquidity and imbalances, it's actually

a point that is less likely to create

reactions than we would like it to. So

because of the imbalance we still have

this one would be more so the true zone

that we would want to trade from. Okay.

This one no impulsive break. So no

interest there. This one impulsive

breakdown. Definitely interest here.

This one again impulsive breakdown. But

we see between these two zones there is

this tiny piece of imbalance. And yes

although it's tiny it still matters.

Okay. Tiny imbalances are still likely

to be filled. And this is where people

go wrong because they will see, well,

the imbalance is so small, I can ignore

it. But you shouldn't ignore tiny

imbalances like this. Because at the end

of the day, it is still showing open

orders. It's showing an open price

range, a gap between where the market is

now and where the true impulsive,

decisive selling began. So for us on

this movement, we would prefer to

execute from this point. Okay? Right? So

we'll not worry about the stop.

Aggressive stops would go there. Safest,

most conservative stops would go up

there. Don't worry about that too much.

We're just looking at the focal target

entry area and then your entry rather

than going on this zone. So rather than

having a trade that looks like this, you

would have a trade that looks like this.

Okay? Or with the more conservative stop

if you want to. But the idea is what we

don't want to do is trust this zone and

put our stop loss where the imbalance

remains because with the remaining

imbalance, the probability of us trading

through that point is still very high.

Okay? And if you take a look what

happens when we run this market forward,

we get a drive up. We take out this trap

or inducement zone. We fill that final

imbalance and then we have our

significant sell-off. So even though the

imbalance is only tiny, it's still

absolutely relevant because any open

imbalance, be it a tiny one or a large

one, is still prone to being filled by

the market. And if you start trusting

that these small imbalances won't be

filled and you start taking trades from

this position and you're putting your

stop losses in these points, well,

you're going to get wicked out or

stopped out very lightly before the

market runs in your favor. So consider

imbalances even if they are small

because they are still relevant. Doesn't

matter if they're only one pip, doesn't

matter if they're 100 pips, they're just

as relevant as each other. If the

imbalance is still there from a core

high probability impulsive structure

breaking area and you definitely want to

keep that imbalance in mind, it's likely

to be filled and you don't want to get

caught on the wrong side of it. Right

now, let's take a look at one of those

examples we said where you can use

imbalances as targets. So, if we look

through this downward move that we have

from this point down, we see that

basically all of the supply zones that

have been created have actually been

filled by price. So, we have these two

here which have been filled. We then had

this huge rally which has actually

started to shift some of the structure

to the upside. Now if we were

predominantly bearish on this market

let's say from the daily perspective and

we think that once this uh market has

returned to an imbalance point it will

reverse back to the downside. Well that

sets up opportunity for us to actually

trade with the smaller trend which would

be this reversal we've seen towards a

notable point of imbalance. Now given

this huge impulse we've just had and the

break of this kind of internal structure

when we consider it to the context of a

larger daily downtrend, we would want to

identify where the supply zones are

previous. So we just look to the left

over here and find the core point which

in this case would be this open

imbalance which is the highest imbalance

in this price move and we would say well

now that we've shifted the structure

maybe we have some opportunity to trade

in this new small uptrend towards the

higher supply. So, because these

imbalances are likely to be filled,

right, whether it's near-term or

long-term, we basically can use these

imbalances as targets on the way into

larger trades. So, if we overall think

this market's going to go down, we can

say, okay, where's the core point that

it's likely to come down from? We see

there's still some remaining imbalance

just here. So, we could say the most

probable point for this to go short is

actually going to be from here. If we

then see on the smaller picture, we have

some potential uptrend forming with this

lower low, lower high, lower low, break

into a higher high, we could say, well,

if the market returns to our imbalance

here, we could potentially trade up

towards the imbalance here. And then we

could look to trade down from the

imbalance there. Okay? So we use big

picture context of a daily bearish

market, smaller picture context of a

4hour bullish market and we [snorts] say

if we think this market's going to

return to a core imbalanced area before

selling off, we can actually use that as

a target in the meantime. So we could

look at buying say from there up to

there. Okay, you can go conservative

stop under all imbalance or aggressive

stop under the near-term imbalance and

you can just run a trade using imbalance

as your target because your big picture

context says even if this market then

reverses bearish, it is highly likely to

at least first fill the imbalance supply

zone we've got. Right? So what we're

doing here is basically saying even

though the market may remain bearish

right now in the short term it's bullish

and we have this clear open imbalance as

a target that we can run the market

into. Now, just a small interruption

from this class. What you're learning

here about technicals is necessary, but

technicals alone are not sufficient to

get you to where you want to go. If

you've been struggling at trading for

some time, it's generally not because of

what you see on the charts, but more so

because of the habits, risk behavior,

decision-m under pressure, and

self-sabotage patterns that form inside

of the way that you operate. These are

things that simply don't show up in

technical analysis. And I've broken all

of this down in literally a 15minute

video. I've been through it without

wasting time. Making it as efficient as

possible to help you understand how

systems and things behind the scenes

that you can't see on the charts are the

things that actually push you to

success. So, if you want to learn all

about this and break out of the losing

cycle you've been in for however many

months or years that you've been

trading, check that out using the link

in the description, but watch it after

this class so that you absorb the

knowledge from this lesson before you go

over there. It's definitely worth the

watch. And with that said, let's get

back to the boot camp. When we scale

that forward, we see although this was a

slowmoving market, that's exactly what

happens. We traded into the imbalanced

demand zone tapped in creating the buy

opportunity. We use imbalance as a

target, the imbalanced supply zone. And

you see when that imbalanced supply zone

is then met, the buyer would be closed

out and you would shift into the short

side to follow the bigger picture down.

So as well [clears throat] as using

imbalances for entries for trades as we

did here, we can also use them for trade

targets by targeting imbalance areas

that are likely to be filled on the

bigger picture context. We can use

short-term buyers into selling

opportunities and that alone can become

a very good trade. And as you can see,

because we use this imbalance as the

target, well, this buy gets the perfect

exit before the market fully reverses.

So imbalance is a tool that can be used

to identify good entries and make sure

you don't get into trades too soon for

good targets to make sure you're getting

out at the highest probable point and

ultimately just to understand the

ultimate flow of the market based on

whether we have imbalances above and

below and pairing that with supply and

demand and market structure as we've

already been through to determine where

the market reversal points and magnet

price areas are likely to be. Markets

will be continually drawn towards

imbalances. So if you understand where

those imbalances are and which way the

market is going, you can use them to

identify pretty high probability

opportunities for trades. Okay? So it's

entries and targets and above all it's

magnet price areas. We use imbalances to

identify points that although it might

look like it now are likely to be filled

in the near future. And when you

understand this, you understand

imbalances, you set yourselves into a

very good position to continually

understand the markets better, have

better trading clarity, and catch better

opportunities. So, with that said,

that's the end of this class. I hope

this has been valuable. Head over to the

link in the description for the trading

diagnosis class to see what it is that

actually hold you back from winning away

from the charts. And other than that,

I'll see you in the next episode.