medium · Order Flow Analysis absorption-exhaustion-imbalance
A 'Single Print' of 3 contracts occurs at the session high in the Euro FX (6E). The adjacent price level has 450 contracts.
What does this ratio (150:1) signify?
- Institutional capping; a large seller is distributing.
- Initiative buying about to break out.
- Buyer exhaustion; the last aggressive buyer has been filled and no one is willing to pay higher.
- A liquidity vacuum where price will likely spike higher.
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