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Stacked Imbalance detects zones where multiple consecutive price levels within a candle exhibit a strong directional volume imbalance. When three or more adjacent price levels all show buying dominance (or selling dominance) beyond a configurable ratio, it signals aggressive institutional commitment at that price zone. These stacked zones frequently become future support or resistance levels.

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How Imbalance Stacking Works

At each price level within a cluster candle, the indicator calculates the ratio between buy volume and sell volume. An imbalance exists when one side exceeds the other by the configured ratio threshold. For example, with a ratio of 150% (1.5:1):
  • A level with 300 buy volume and 180 sell volume has a ratio of 1.67:1 — buy imbalance detected.
  • A level with 100 buy volume and 200 sell volume has a ratio of 2.0:1 (sell side) — sell imbalance detected.
A stacked imbalance occurs when three or more consecutive price levels in the same candle all show imbalance in the same direction. This is significant because it means aggressive one-sided activity was sustained across a range of prices, not just at a single isolated level.

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Buy Stacked Imbalance

When multiple consecutive levels show dominant ask (buy) volume, it indicates aggressive buying across a price zone. The base of a buy stacked imbalance (the lowest price level in the stack) often acts as future support, because buyers demonstrated willingness to aggressively lift offers across that entire zone.

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Sell Stacked Imbalance

When multiple consecutive levels show dominant bid (sell) volume, it indicates aggressive selling across a price zone. The top of a sell stacked imbalance (the highest price level in the stack) often acts as future resistance, because sellers demonstrated willingness to aggressively hit bids across that entire zone.

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Core Settings

The minVolume filter is critical for avoiding false signals on low-liquidity instruments or during low-activity periods. A level where 3 contracts bought vs. 1 contract sold has a 3:1 ratio, but it is statistically meaningless. Set minVolume appropriately for your instrument’s typical volume per level.

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Line Settings

Stacked imbalance zones are visualized as horizontal lines on the chart. These lines extend to the right from the candle where the imbalance was detected, serving as dynamic support and resistance levels.

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Style Parameters

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Width Scaling

Line width is dynamically scaled based on the total volume in the imbalance zone. Zones with more volume produce thicker, more prominent lines. For example, with minLineWidth: 1, maxLineWidth: 5, and volumeStep: 1000:
  • A zone with 500 total volume renders at width 1.
  • A zone with 3000 total volume renders at width 3.
  • A zone with 5000+ total volume renders at maximum width 5.

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Labels and Visibility

Enable hideCrossedLines to keep your chart focused on active levels. Lines that have been crossed are generally less reliable as future support or resistance, although some traders watch for retests of crossed levels.

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Glow Effects

Premium glow effects make stacked imbalance lines visually prominent, especially on dark chart backgrounds. Glow is available with all line visual styles but is most effective with the neon style, which adds a colored aura that matches the line color.

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Premium Styles

Stacked Imbalance supports Cluster Terminal’s premium rendering engine for line visuals:

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Alert Rules

Alerts for stacked imbalance line retests are valuable for notification-based trading workflows. When a known imbalance zone is retested, you can evaluate whether the level holds (potential entry) or breaks (invalidation of the thesis).

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Reading Stacked Imbalances

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Strength Assessment

Not all stacked imbalances are equal. Several factors determine the strength of a zone:

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Location Matters

Stacked imbalances at the extremes of candles (in the wicks) are generally more significant than those in the candle body:
  • At the candle low: A buy stacked imbalance at the low indicates aggressive buyers stepped in to halt the decline. This is classic demand.
  • At the candle high: A sell stacked imbalance at the high indicates aggressive sellers capped the rally. This is classic supply.
  • In the body: Imbalances in the candle body show directional aggression during the move, but they may not create as reliable support/resistance as extreme-level imbalances.

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Practical Usage

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Best Timeframes

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Tuning for Your Instrument

Different instruments require different settings due to varying liquidity profiles:

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Confluence Setups

Stacked imbalance lines are strongest when they align with:
  • Absorption Alpha levels: A stacked imbalance zone that also shows absorption confirms that institutional activity occurred from both aggressive and passive sides.
  • Volume Profile POC or HVN: An imbalance zone at a high-volume node indicates institutional defense of a fair-value level.
  • Unfinished Business: A stacked imbalance near an unfinished auction level creates two independent reasons for price to react at that level.
  • Session highs/lows: Imbalance zones that coincide with previous session extremes gain significance from the structural level.
Higher consecutive levels (4 or 5) produce significantly stronger zones. If you find yourself overwhelmed by too many lines on the chart, increase consecutiveLevels to 4 before adjusting the ratio. Lines that hold on their first retest become high-priority levels for future trading sessions.