medium · Order Flow Analysis absorption-exhaustion-imbalance

In a 'Volume Chart' (5,000 volume), what does a very narrow price range on a bar imply?

  1. High absorption; many contracts traded without moving the price significantly.
  2. Low participation; the market is quietly waiting on a fresh catalyst.
  3. The start of a strong, sustained, initiative-driven trend move higher.
  4. A liquidity vacuum where price moved through several levels with essentially zero resting interest.

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