medium · Order Flow Analysis absorption-exhaustion-imbalance
If the ratio R_top = fracV_ask, second levelV_ask, top level is less than 0.70 on a bar that closes lower, what does this signify?
- Retail exhaustion at the high.
- An 'Unfinished Business' pattern that must be revisited.
- Strong initiative buying pushing into new territory.
- An institutional participant 'capped' the market at the extreme.
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