medium · Order Flow Analysis absorption-exhaustion-imbalance

During a 5-minute ES bar, the bid volume at 4520.00 is 580 contracts and the ask volume at 4520.25 is 140 contracts. At the price level above, the bid volume at 4520.25 is 520 and the ask volume at 4520.50 is 125.

Using a 300% threshold, what does the diagonal reading indicate?

  1. A buying imbalance at 4520.25 and 4520.50.
  2. Passive institutional buying absorption at 4520.00.
  3. A stacked selling imbalance across 4520.00 and 4520.25.
  4. Neutral market activity with no clear imbalances.

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