Developing Imbalance Footprint Explanation
This morning we received the following question from a user. It's a great question and one that is clarified in the video below.
I have been noticing that when looking at imbalance footprint charts a lot of the time the imbalance will show up (green or red) as it does only to then be reversed back as if it never happened. Why does this happen and is there a way to only display the occurrences where the actual imbalance stays once it is presented?
We show the imbalance in real time, giving you the earliest indication of a potential imbalance. However, because the developing (current) bar has not yet completed. there is a chance the imbalance that first appeared will disappear as more trading occurs.
You cannot be assured of an imbalance UNTIL the bar closes and a new bar starts. Only then is the imbalance "locked" in the history of the bar and a confirmed imbalance.