medium · Order Flow Analysis absorption-exhaustion-imbalance
A 5-minute bar in the ES starts with heavy aggressive buying (green) in the lower half of the range, but then shifts to heavy aggressive selling (red) in the upper half before closing near the midpoint.
What does this internal color transition suggest?
- The bar indicates a 'Gap-and-Go' scenario where the open price was defended by institutions.
- The market experienced a failed rally within the bar, as sellers took control at higher prices.
- Passive buyers absorbed all selling pressure at the top to prepare for a breakout.
- Buyers established strong initiative control throughout the entire duration of the bar.
Sign up free to see the explanation and track your rank →
More Order Flow Analysis absorption-exhaustion-imbalance practice
- What market phenomenon is occurring?
- Where is the most structurally sound place to put the stop loss for a short entry?
- A trader is analyzing a bar in the 10-Year Treasury (ZN). Th… — What does this suggest?
- During the first 30 minutes of the RTH session, the E-mini S… — If the price breaks above
- Where should the entry and stop be placed?
- The treatise mentions a 'Self-Reinforcing Feedback Loop' reg… — What does this mean for pr
- According to the structural stop-placement guide, where should the stop be placed if enter
- A market opens with a 10-point gap up. In the first 15 minutes, the footprint shows heavy