medium · Order Flow Analysis absorption-exhaustion-imbalance

What does this combination most precisely indicate?

1. Aggressive buyers are increasingly committing (rising CVD) while a passive seller absorbs them so price can't make a higher high, and the shrinking up-ranges show buyer effort yielding diminishing result — absorption building toward exhaustion
2. CVD diverging above price at this key resistance retest reads as a clearly bullish accumulation signal here, meaning the lower high in price is simply a bear trap forming, and a decisive breakout above resistance should soon follow
3. The smaller ranges on each successive attempt mean volatility is merely contracting ahead of an eventual expansion, so directional bias stays entirely undefined, and the CVD divergence against price should be treated as pure noise and disregarded
4. Price made a lower high simply because buyers stepped away from the level at that exact moment; the rising CVD reading is stale exchange data lag from earlier prints and does not reflect the genuine live order flow occurring at this particular retest

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