Cumulative Imbalances

See the Imbalance Battle. As a Single Line.

Volume imbalance indicators show you where buyers or sellers dominated. But they don’t show you who’s winning overall.

Cumulative Imbalances tracks the running score:

• Buy imbalance detected → Line goes UP (+1)
• Sell imbalance detected → Line goes DOWN (-1)

Watch the cumulative total build over time. See trends, divergences, and shifts in control—all from one clean line.

WHAT IT SHOWS:

• Rising line = Buyers winning the imbalance war
• Falling line = Sellers winning
• Divergence from price = Potential reversal signal

KEY FEATURES:

• All 9 comparison methods from VAP Threshold Alert
• Minimum volume filter for ratio comparisons (no noise)
• Separate pane display for clean analysis
• Stacked imbalance highlighting (optional)
• Extension lines for key levels (optional)

TRADING APPLICATIONS:

• Trend confirmation (trade with the line direction)
• Divergence setups (price vs cumulative disagreement)
• Session bias analysis (who’s in control today?)
• Absorption detection (sharp moves = strong hands)

PERFECT FOR:

• Orderflow traders who want cumulative context
• Divergence hunters looking for reversal signals
• Trend traders confirming directional bias
• Anyone who wants imbalance data simplified

One line. Complete picture.

Documentation

Tracks the running total of bid/ask imbalances as a line graph, showing the cumulative buying vs selling pressure over time.

Cumulative Imbalances extends the Volume At Price Threshold Alert concept by maintaining a running count of imbalances:

• When a buying imbalance is detected (ask dominance), the line moves up (+1)
• When a selling imbalance is detected (bid dominance), the line moves down (-1)

This creates a cumulative delta-style indicator specifically for imbalance events, helping you visualize whether buyers or sellers are winning the imbalance battle over time.

How It Works

1. Scans each bar’s Volume at Price data
2. Identifies price levels meeting your imbalance threshold
3. Adds +1 for buy imbalances, -1 for sell imbalances
4. Plots the cumulative total as a line graph

Key Differences from Volume At Price Threshold Alert

Feature	VAP Threshold Alert	Cumulative Imbalances
Display	Markers on price chart	Line graph in separate pane
Output	Individual alert locations	Running total over time
Direction	Shows where imbalances occur	Shows net buying/selling pressure
Trend Analysis	Difficult	Easy – line direction shows bias

Subgraphs

Subgraph	Description
Cumulative Imbalances	Main line graph showing running imbalance total
Count of Alerts	Number of imbalances per bar (hidden by default)
Trigger 1-47	Individual trigger price levels (hidden by default)
Adjacent Alert Highlights	For stacked imbalance highlighting

Inputs

Input	Default	Description
Comparison Method	Total Volume	Method for detecting imbalances (see below)
Volume Threshold	100	Threshold for volume-based comparisons
Percentage Threshold	150%	Threshold for ratio-based comparisons
Minimum Volume for Ratio Comparisons	0	Filter out low-volume ratio signals
Volume Alert Number	0	Audio alert sound
Draw Extension Lines	None	Extension line options
Highlight Adjacent Alerts Group Size	0	Minimum size for stacked imbalance highlighting
Number of Days to Calculate	30	Lookback period

Comparison Methods

1. Bid Volume – Count when bid volume exceeds threshold (+1)
2. Ask Volume – Count when ask volume exceeds threshold (+1)
3. Total Volume – Count when total volume exceeds threshold (+1)
4. Number of Trades – Count when trade count exceeds threshold (+1)
5. Ask Volume Bid Volume Difference – +1 for ask dominance, -1 for bid dominance
6. Ask Volume Bid Volume Diagonal Difference – Diagonal version with direction
7. Ask Volume Bid Volume Ratio – +1 for ask ratio, -1 for bid ratio
8. Ask Volume Bid Volume Diagonal Ratio – Diagonal ratio with direction
9. Bid Volume and Ask Volume Separately – Both thresholds must be met (+1)

Interpreting the Line

Trend Direction

• Rising line: Net buying pressure (more buy imbalances)
• Falling line: Net selling pressure (more sell imbalances)
• Flat line: Balanced or no significant imbalances

Divergences

• Price up + Line down: Bearish divergence (selling into strength)
• Price down + Line up: Bullish divergence (buying into weakness)

Extreme Readings

• Sharp spikes up: Strong buying absorption
• Sharp spikes down: Strong selling absorption

Use Cases

Trend Confirmation

Align trades with the cumulative line direction:

• Long setups when line is rising
• Short setups when line is falling

Divergence Trading

Look for price/cumulative divergences at key levels for reversal setups.

Session Analysis

Reset at session start to see intraday cumulative bias.

Installation

1. Place CumulativeImbalances.dll in your Sierra Chart Data folder
2. Add study to chart: Analysis > Studies > Add Custom Study
3. Search for “Cumulative Imbalances”

Requirements

• Sierra Chart with Volume at Price data enabled
• Main chart must have VAP data (study displays in separate pane)