easy · Order Flow Analysis absorption-exhaustion-imbalance

A footprint bar displays 500 contracts of ask volume at the session high, but only 5 contracts of bid volume. The bar closes lower. This is an example of:

  1. Institutional stop-running where sellers are being flushed out.
  2. A bullish breakout signal because of the 500-lot aggression.
  3. Bearish COT-at-high with trapped buyers.
  4. Market equilibrium as both sides transacted significant volume.

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