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ICT Volume Imbalance: What It Is and How It Differs from an FVG

The Volume Imbalance is the lesser-known sibling of the Fair Value Gap. Where an FVG requires three candles and a gap between candle 1 and candle 3, a Volume Imbalance forms across just two candles — specifically where the body of one candle and the body of the next leave a gap with no overlap. They look similar, fill differently, and carry different weight in the ICT PD array hierarchy.

The Inner Circle Traders

Updated July 2026

8 min read

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Key Takeaways

A Volume Imbalance (VI) forms between two consecutive candles when the close of the first and the open of the second leave a gap — there is no opposing wick or body overlap between them
Unlike a Fair Value Gap (three-candle structure), a VI is a two-candle structure — it does not require a middle displacement candle
Volume Imbalances fill from the edge inward — price returns to fill them partially or fully, but tends to fill more quickly and less cleanly than FVGs
VIs are lower in the ICT PD array hierarchy than FVGs and Order Blocks — they are used as supporting context, not primary entry zones
The most significant VIs are those that overlap with or sit adjacent to FVGs — the combined zone creates a larger institutional imbalance with higher fill probability

What is an ICT Volume Imbalance?

A Volume Imbalance (VI) is a two-candle price structure where the body of one candle and the body of the next candle leave a gap between them — specifically, where the close of the first candle and the open of the second candle do not overlap. The gap represents a range of prices where transactional volume was severely one-sided: so heavily weighted in one direction that price moved through the range without meaningful opposing participation.

The name “volume” in Volume Imbalance refers to this one-sidedness — the ratio of buying to selling through that price range was so skewed that effective two-sided trading did not occur. Like a Fair Value Gap, the VI represents an institutional inefficiency that price will typically return to fill before continuing.

Key distinction

An FVG is a three-candle structure measured wick-to-wick (candle 1 high to candle 3 low, or candle 1 low to candle 3 high). A Volume Imbalance is a two-candle structure measured body-to-body (candle 1 close to candle 2 open). Both represent institutional imbalances — they form at different scales and fill with different characteristics.

VI vs FVG: The Structural Difference

The structural difference between a Volume Imbalance and a Fair Value Gap is in the candle count and the measurement method.

A Volume Imbalance requires exactly two candles. The gap exists between the close of candle 1 (the body’s end) and the open of candle 2 (the body’s start). For a bearish VI: candle 1 closes at a price, and candle 2 opens at a lower price — the range between the close and the open is the VI zone. There is no wick from either candle that crosses this range.

A Fair Value Gap requires three candles. The gap exists between the high of candle 1 and the low of candle 3 (bearish FVG) or the low of candle 1 and the high of candle 3 (bullish FVG). The middle candle — candle 2 — is the displacement candle that creates the gap. The FVG is measured wick-to-wick, not body-to-body.

In practice, VIs are often smaller than FVGs because they only capture the body-to-body gap rather than the wick-to-wick gap. They also tend to fill more quickly than FVGs — often within the same session — because they represent a smaller, more recent imbalance.

How Volume Imbalances Fill

Volume Imbalances fill from the edge inward — meaning price enters the VI zone from the near edge (where price is coming from) and moves toward the far edge. For a bullish VI (where the gap is above current price), price will approach from below, enter the VI zone, and move upward through it toward the top boundary.

VIs fill more quickly than FVGs in most cases. Because the VI is a body-to-body gap rather than a wick-to-wick gap, it is typically a smaller price range and represents a less significant institutional imbalance. Price will often retrace to fill a VI within one or two sessions after it forms.

A full VI fill means price has moved through the entire body-to-body gap. A partial fill — where price enters the VI and reverses — is also common, particularly when the VI sits at a significant PD array like an OB or FVG boundary. In those cases, the VI provides additional context for the entry at the larger PD array, rather than being an entry zone itself.

Where VI Sits in the PD Array Hierarchy

In the ICT PD Array hierarchy, Volume Imbalances rank below Fair Value Gaps and Order Blocks in terms of standalone entry significance. This does not mean VIs are unimportant — it means they are best used as supporting context rather than primary entry triggers.

The ICT PD array hierarchy from highest to lowest entry significance is broadly: Balanced Price Range → Order Block → Fair Value Gap → Volume Imbalance → Rejection/Mitigation Block. A VI that aligns with a higher-ranked PD array (an OB or FVG at the same price level) creates a higher-confluence zone. A standalone VI without other confluence is a lower-priority trade.

Use VIs in the following ways: as a confirming factor when an OB or FVG also exists at the same level; as a fill target when planning where a retrace is likely to reach before reversing; as an early warning that price is approaching a larger imbalance zone just beyond the VI boundary.

VI + FVG: The Combined Imbalance Zone

The most significant Volume Imbalance setups occur when a VI sits adjacent to or overlapping with an FVG. In this configuration, the VI acts as the near-edge entry for a move that eventually fills the FVG, creating a layered imbalance zone with two distinct levels of institutional interest.

The sequence: price moves into the VI zone first — filling the smaller, more recent imbalance. As the VI fills, price approaches the FVG boundary. The FVG is the higher-significance entry zone: when price reaches the FVG top (for a bullish setup), that is where the strongest institutional buying interest sits. The VI fill was the preliminary move that brought price to the higher-value FVG entry.

In practice: if you see a VI and an FVG at nearby price levels, plan the trade around the FVG as the entry — the VI gives you advance warning that price is being pulled into the zone. When price fills the VI and continues, it confirms directional momentum toward the FVG. The entry is at the FVG, not the VI.

Trading Volume Imbalances: Entry and Target Logic

Volume imbalances are traded similarly to Fair Value Gaps but with an important distinction: the entry within the VI zone is at the boundary where the gap begins rather than at the 50% midpoint (CE) used for FVG entries. The reasoning: unlike an FVG where price gaps completely over the zone, a volume imbalance still has some tick trades within it — the overlap of the adjacent candles’ wicks means the zone is not completely empty. Entering at the boundary rather than the midpoint gives a better price and a tighter stop.

For a bullish VI entry: the VI zone forms when two adjacent bullish candles have the low of the later candle above the high of the earlier candle (wick-to-wick gap, not body-to-body). Enter at the upper boundary of this wick gap (the high of the first candle’s wick) when price returns to it. Stop goes below the low of the second candle. Target is the next BSL above — the same draw on liquidity you would target from an FVG entry in the same zone.

Volume imbalances in conjunction with a Fair Value Gap at the same price zone deserve special mention. When a VI forms and the FVG from the same displacement also sits at the same price level, the overlap creates a combined imbalance zone with both structural (body gap of the FVG) and tick volume (wick gap of the VI) confirmation. This is the combined VI + FVG zone and represents one of the deepest confirmations of institutional imbalance at a price level. Treat these zones as your highest-priority re-entry zones during any retracement.

Volume Imbalance vs FVG: Which Takes Priority?

In the ICT PD array hierarchy, FVGs generally take priority over volume imbalances because the FVG represents a more complete institutional imbalance — the body gap means no trades occurred in that price range at all, not even wicks. A VI is a partial imbalance — some wick trades occurred but no body closes. The FVG is the stronger imbalance signal.

However, when an FVG is not present in the current delivery zone but a VI is, the VI becomes the actionable entry level. Do not discard the VI just because it is lower in the hierarchy than an FVG — in the absence of an FVG, the VI is the next best structural entry zone and should be traded as such.

The most common practical application: use the VI to define the boundary of the re-entry zone when the FVG is partially filled. As a retracement moves into a bullish FVG zone, price may fill the upper portion of the FVG but leave the lower portion unfilled. The VI within the lower portion of the FVG marks the point where the strongest remaining imbalance exists — it is where the most institutional buying is likely to defend the zone. Identifying the VI within an existing FVG provides the most precise possible entry within an already-identified bullish zone.

Watch: ICT Volume Imbalance: What It Is and How It Differs from an FVG

Original ICT teaching on this concept from the Inner Circle Trader YouTube channel.

Frequently Asked Questions

Is a Volume Imbalance the same as a gap on a candlestick chart?+

Not exactly. A candlestick gap (where the open of a new candle is above or below the close of the previous candle, leaving a visible space on the chart) is one type of Volume Imbalance. However, a VI can also occur without a visible gap if the candle bodies touch but the close and open are at the exact same price — in ICT terms, a VI requires no overlap between the bodies. Traditional candlestick gaps are always VIs; not all VIs are visible as traditional gaps.

Can I use a Volume Imbalance as a standalone trade entry?+

It is possible but not recommended as the primary approach. VIs as standalone entries have lower probability than FVG or OB entries because they represent a smaller, less significant institutional imbalance. The better use is to combine a VI with a nearby FVG, OB, or dealing range boundary — the VI provides additional context, the higher-ranked PD array provides the entry.

Do Volume Imbalances always fill completely?+

No — partial fills are common, especially when the VI sits near a significant structural level (swing high, equal high, PDH). In those cases, the larger structural level causes a reversal before the VI is fully filled. Always consider what sits beyond the VI before assuming it will fill completely — if the next significant PD array or liquidity pool is just beyond the VI top, price may reverse there rather than at the VI edge.

How do I mark a Volume Imbalance on my chart?+

Identify two consecutive candles where the body close of one and the body open of the next leave a visible gap — no overlap between the two bodies. Draw a rectangle spanning from the higher body boundary to the lower body boundary. The interior of that rectangle is the VI zone. Mark it the same way you would mark an FVG — with a coloured rectangle — but in a different colour or shade to distinguish it from FVGs visually.

Are Volume Imbalances more common than FVGs?+

Yes — because VIs require only two candles and a body-to-body gap (rather than the more specific three-candle wick-to-wick structure of an FVG), they form more frequently. On active instruments like EURUSD or NQ during kill zones, multiple VIs may form in a single session. This frequency is one reason they rank below FVGs in the PD array hierarchy — scarcity contributes to an FVG's significance.

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The Inner Circle Traders

Educational Content Team

This article is part of the free ICT Trading education programme — 118 articles written from scratch covering the complete Inner Circle Trader methodology. All content is for educational purposes only. This site is independent and is not affiliated with Michael Huddleston or the Inner Circle Trader.

ICT Volume Imbalance ICT VI ICT FVG vs VI ICT PD Array ICT Two-Candle Imbalance ICT Institutional Imbalance

← ICT NDOG and NWOG Next: ICT Propulsion Block →

ICT Volume Imbalance: What It Is and How It Differs from an FVG

What is an ICT Volume Imbalance?

VI vs FVG: The Structural Difference

How Volume Imbalances Fill

Where VI Sits in the PD Array Hierarchy

VI + FVG: The Combined Imbalance Zone

Trading Volume Imbalances: Entry and Target Logic

Volume Imbalance vs FVG: Which Takes Priority?

Watch: ICT Volume Imbalance: What It Is and How It Differs from an FVG

Frequently Asked Questions

Test Your Knowledge

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