easy · Order Flow Analysis absorption-exhaustion-imbalance
An ES footprint bar shows a high at $4518.00 with 3 contracts on the ask and $8 on the bid. The level immediately below, $4517.75, shows $180 on the ask and $45 on the bid.
How should this volume pattern at the extreme be interpreted?
- Aggressive buyers are preparing for a breakout.
- The market has rejected the high due to exhaustion.
- The market is accepting the high as fair value.
- An institutional seller is 'capping' the market with supply.
Sign up free to see the explanation and track your rank →
More Order Flow Analysis absorption-exhaustion-imbalance practice
- What market phenomenon is occurring?
- Where is the most structurally sound place to put the stop loss for a short entry?
- A trader is analyzing a bar in the 10-Year Treasury (ZN). Th… — What does this suggest?
- During the first 30 minutes of the RTH session, the E-mini S… — If the price breaks above
- Where should the entry and stop be placed?
- The treatise mentions a 'Self-Reinforcing Feedback Loop' reg… — What does this mean for pr
- According to the structural stop-placement guide, where should the stop be placed if enter
- A market opens with a 10-point gap up. In the first 15 minutes, the footprint shows heavy