medium · Order Flow Analysis absorption-exhaustion-imbalance
How does the 'Wick-Body Imbalance' signal identify a shift in control within a single footprint bar?
- It identifies where the Δ Max occurred and compares it to the final bar Δ to see if aggression stayed high
- It shows buying imbalances in the upper wick (failed effort) followed by selling imbalances in the body (active reversal)
- It measures the ratio of volume in the wick to the total volume of the preceding three bars
- It requires the COT to be perfectly centered between the open and the close of the candle
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