easy · Order Flow Analysis absorption-exhaustion-imbalance
A trader is analyzing a bar in the 10-Year Treasury (ZN). The high of the bar shows an ask volume of 2 contracts, while the price immediately below shows an ask volume of 520.
What does this suggest?
- An institutional breakout is about to occur at this exact price level.
- The auction at the high is unfinished and must be revisited by price at a later time.
- Buyer exhaustion at the high, often called a 'single-print' or 'small print'.
- Passive sellers are heavily capping the market at the high, absorbing every buyer.
Sign up free to see the explanation and track your rank →
More Order Flow Analysis absorption-exhaustion-imbalance practice
- During the first 30 minutes of the RTH session, the E-mini S… — If the price breaks above
- A 5-minute ES bar shows buying imbalances in the upper wick… — What is the narrative of th
- Where should the entry and stop be placed?
- An ES footprint bar shows a high at $4518.00 with 3 contract… — How should this volume pat
- What market phenomenon is occurring?
- The treatise mentions a 'Self-Reinforcing Feedback Loop' reg… — What does this mean for pr
- A market opens with a 10-point gap up. In the first 15 minutes, the footprint shows heavy
- What is the most likely outcome?