hard · Order Flow Analysis absorption-exhaustion-imbalance
After a period of absorption in CL at $72.50, price pushes to $72.56. The breakout bar shows ask volume of 40, 35, 30, and 25 at the new price levels with a Δ of +180.
How should this be interpreted?
- Institutional 'Iceberg' buying, since the algorithm hides its true size by only lifting 25-40 lots at a time.
- A genuine 'Gap-and-Go' scenario in which sellers have completely and permanently withdrawn all resting liquidity.
- A false breakout, as the thin volume and weak Δ suggest the move is not being fueled by institutional initiative.
- A 'Single-Print High' exhaustion signal, suggesting an immediate long entry is required before price escapes higher.
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