medium · Order Flow Analysis absorption-exhaustion-imbalance
A footprint bar in Euro FX (6E) shows the highest total volume (COT) at the very high of the bar. However, the bar closes in the lower 25% of its range.
What does this footprint signature typically indicate?
- Retail exhaustion occurring right at the session's new high.
- A bullish breakout with high conviction as buyers push price forward.
- A bearish 'cap' where passive sellers overwhelmed aggressive buyers.
- An incomplete auction at the high that will draw in more aggressive buyers.
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