medium · Order Flow Analysis absorption-exhaustion-imbalance
In Corn futures (ZC), a 15-minute bar shows the Commitment of Traders (COT) at the very high of the range. The bar has a diagonal ratio of 4.5:1 Ask volume to Bid volume at that COT level.
If the bar's open was $378.00 and its close is $378.25, which of the following confirms a 'Cap' signal by a passive seller?
- The bar closes on its low with a delta reading of positive twenty-five hundred contracts traded
- The price fails to advance despite heavy Ask volume at the high, and the subsequent bar opens lower.
- The bar high shows absolutely zero Bid volume, and the COT sits located in the middle of the upper wick
- The 4.5:1 diagonal ratio of Ask volume to Bid volume is maintained consistently across the entire body of the bar
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