easy · Order Flow Analysis absorption-exhaustion-imbalance
Using a 3:1 threshold, adjacent ask-to-bid ratios are 3.2, 3.8, and 4.1.
Do the three levels form a qualifying buying stack?
- No; adjacent levels cannot be compared
- Yes; all three adjacent ratios meet or exceed 3:1
- No; only ratios above 4:1 count
- Yes; therefore price must rise
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