Imbalance

Definition

Imbalance in ICT terminology refers to an inefficient price move — a sequence of candles where one side of the order flow dominates so completely that price moves through levels without producing matched bid-ask transactions on the way through. Imbalances overlap conceptually with Fair Value Gaps (FVG) and are sometimes used interchangeably; technically an imbalance is the broader concept and FVG is the specific three-candle visualisation. ICT methodology anticipates imbalances will be rebalanced — price will return to fill the inefficient zone as part of normal order-flow rebalancing. Many ICT EAs use imbalance detection as a primary entry signal.