Disbalans

Disbalans — Market Imbalance Indicator
Concept and Philosophy

The market is a constantly moving system that spends most of its time in a state of relative equilibrium. During such periods, price fluctuations stay within certain boundaries, forming a "balance zone" — a corridor where supply and demand are roughly equal. Trading inside this zone often comes with high noise levels and false moves.

But sometimes the market breaks equilibrium. A sharp move, a volatility spike, a strong candle — these are moments of imbalance. Price makes a move that exceeds normal fluctuations for that instrument. It is at these moments that the market gives us a signal: balance is broken, one side is taking control.

Why Imbalance Matters

Our idea is simple and intuitive: the further a move deviates from the "norm," the higher the probability that this move has exhausted itself and a return will follow. This is not overbought or oversold in the classical sense. It is an assessment of how far the current price has moved from its natural, balanced state.

The Disbalans indicator does not try to predict direction. It shows you when movement becomes "excessive." And excessive movements tend to end.

How It Works

Imagine every instrument has its own "comfort zone" — a range within which price moves freely, without excessive tension. When price breaks below this zone — Long imbalance occurs (a situation where the market has likely fallen too far). When price breaks above this zone — Short imbalance occurs (the market has likely risen too far).

The indicator automatically calculates these boundaries, taking into account the instrument's individual characteristics: its volatility, historical data, movement patterns. The further price moves beyond the balance zone boundary — the stronger the imbalance, the brighter the signal.

Visual Representation

On the chart, imbalance is displayed as color fills:

Green gamma — Long imbalance zones. The further price has moved down, the more saturated and brighter the fill becomes. This is not a call to "buy immediately," but a marker of territory where downward movement becomes extreme.

Red gamma — Short imbalance zones. Similarly: the higher price has moved, the more intense the red color. A visual scale showing the degree of "overheating" in upward movement.

Additionally, the indicator displays an imbalance oscillator in a separate pane. It shows the current price position relative to the balance zone as a percentage:

0% — price exactly at the equilibrium boundary

-100% and below — Long imbalance zone

+100% and above — Short imbalance zone

This allows for quick situation assessment at a glance.

What "Imbalance" Means in Practice

Imbalance is not just a strong move. It is a move that exceeds the instrument's normal volatility. The market can move but remain in equilibrium. Or it can make just one large candle that creates an imbalance for several periods ahead.

The indicator does not repaint. A signal that appears on a strong move remains on the chart, even if price quickly returns. This is important: imbalance is not a forecast, but a recorded event. The market left equilibrium, and this fact remains in history.

INDICATOR SETTINGS
Support Levels Group
ATR Period Support
The ATR calculation period for determining volatility when building support levels.

• Lower values make the indicator more sensitive to short-term volatility changes
  
• Higher values smooth volatility, making levels more stable
  
• Default value (80) is recommended for most instruments
  

ATR Multiplier Support
ATR multiplier for calculating the base support level. Determines how far from the moving average the first (closest) balance zone boundary is placed.

• Lower values — imbalance zone is reached faster, more signals
  
• Higher values — only the strongest moves are considered imbalance
  
• Recommendation: start with 9, increase to filter noise, decrease for higher sensitivity
  

MA Length Support
Moving average length for calculating the support balance zone.

• Defines the "normal" price level from which deviation is measured
  
• Higher values — longer-term perspective, levels change more slowly
  
• Lower values — indicator adapts faster to market changes
  
• Value 365 (approximately 1 years on daily chart) provides a serious institutional perspective
  

Resistance Levels Group
ATR Period Resistance
ATR calculation period for determining volatility when building resistance levels.

• Similar to the support parameter, but for the upper boundary
  
• Can use different values from support if upside and downside volatility differ
  

Base ATR Multiplier Resistance
Base ATR multiplier for calculating resistance levels.

• Defines the initial distance from the moving average to the balance zone boundary
  
• In combination with the inverse ATR effect, creates adaptive levels
  

MA Length Resistance
Moving average length for calculating the resistance balance zone.

• Symmetrical values with support are recommended for a balanced picture
  
• Asymmetric settings are possible for instruments with different upside and downside dynamics
  

Inverse ATR Settings Group
Inverse Effect Strength
The strength of the inverse ATR effect. Determines how much resistance levels expand during periods of low volatility.

• 0 — effect disabled, levels are static
  
• 1–3 — moderate adaptation
  
• 4+ — aggressive level expansion during volatility compression
  
• Logic: the calmer the market, the smaller the move considered imbalance
  

Normalization Period
ATR normalization period. The time window for assessing the current volatility range.

• Determines what historical period is considered the "norm" for comparison
  
• Lower values — fast adaptation to changing volatility regimes
  
• Higher values — more stable but slower assessment
  

Long Imbalance Settings Group
Long Imbalance 1–9
Enable/disable display of each of the nine Long imbalance levels.

• Level 1 — closest to price, least severe imbalance
  
• Level 9 — maximum distance, extreme imbalance
  
• Allows flexible visibility settings: for example, show only strong signals (levels 5–9)
  

Color Scheme
Individual color and transparency settings for each imbalance level.

• Default gradient from bright green (near levels) to pale orange (distant levels)
  
• Transparency increases with distance from price, creating a depth effect
  
• Fully customizable to match your preferences
  

IMBALANCE OSCILLATOR
Located in a separate pane below the chart and shows:

• Green bars — price in Long imbalance zone (below equilibrium)
  
• Red bars — price in Short imbalance zone (above equilibrium)
  
• -100 level — entry boundary into Long imbalance zone
  
• +100 level — entry boundary into Short imbalance zone
  
• Background fill — visual highlighting of extreme imbalance moments
  

The oscillator is normalized and always moves within a range that adapts to the instrument's current volatility.

ALERTS
The indicator contains ready-made conditions for creating alerts:

Below Support Entry — price entered Long imbalance zone
Below Support Exit — price exited Long imbalance zone
Above Resistance Entry — price entered Short imbalance zone
Above Resistance Exit — price exited Short imbalance zone

You can configure notifications for these events in the TradingView interface.

HOW TO USE
Disbalans is primarily a contextual tool. It does not generate ready-made trading signals or tell you to "buy" or "sell." Its task is to show you when the market enters territory where movements become extreme.

You can use this information in various ways:

• As a filter: avoid short positions in deep green zones and long positions in deep red zones
  
• As a profit-taking area: strong imbalance often precedes a correction
  
• As an area of interest: entries against imbalance require stronger justification
  
• As a risk assessment: the stronger the imbalance, the higher the probability of a technical bounce
  

Important to Understand

Imbalance does not negate trend. In a strong uptrend, price can remain in the red zone for extended periods, continuing to rise. But each excursion into the imbalance zone is stress for the market. The longer price stays there, the further it moves — the more vulnerable the current trend becomes.

The indicator does not tell you exactly when a reversal will occur. It says: "Price is currently far from its equilibrium state." What you do with this information is up to you.

MARKETS AND TIMEFRAMES
Disbalans works on any instrument and any timeframe. The calculation parameters automatically adapt to the specific instrument's volatility.

On lower timeframes, you will see more signals, but also higher noise levels. On higher timeframes, each signal becomes a significant event.

Setup Recommendation:
Start with default parameters. If you see too many signals — increase the ATR multipliers. If you see too few signals — decrease the multipliers. Optimal values depend on your trading style and current market volatility.


INSTEAD OF A CONCLUSION
The market is a pendulum. It constantly deviates from equilibrium and returns. The trader's task is not to catch the pendulum at its extreme point, but to understand when the deviation becomes anomalous.

Disbalans is your coordinate system for assessing these deviations. Not a crystal ball, but a compass. It doesn't predict the future, but it helps you not get lost in the present.