medium · Order Flow Analysis absorption-exhaustion-imbalance
If you observe heavy aggressive buying (large ask volume) but price fails to tick higher, what is the 'Other Forces' principle telling you?
- Retail traders are 'fat-fingering' market buy orders into a declining market
- The market is experiencing a liquidity vacuum that will lead to a rapid upward spike
- Hidden passive selling is stronger than the visible aggressive buying
- The Δ calculation is likely misclassified due to exchange latency
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