easy · Order Flow Analysis absorption-exhaustion-imbalance

What does a very high diagonally compared ratio (e.g., 10:1) with low absolute volume (e.g., 10 lots vs. 1 lot) typically signal?

  1. A liquidity vacuum where the market will soon gap 50 ticks.
  2. A 'slam dunk' high-conviction trade setup.
  3. Market noise with no institutional significance.
  4. The presence of a stealth institutional iceberg order.

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