medium · Order Flow Analysis absorption-exhaustion-imbalance
A trader observes a bar where the 'Top-Heavy' ratio (R_top) is 0.25. The bar closed lower.
What does this suggest about the activity at the high of the bar?
- The auction at the high is unfinished and will likely be revisited.
- Retail buyers successfully broke out but the move lacked volume follow-through.
- Aggressive sellers were exhausted at the top.
- A large participant was selling passively at the extreme high.
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 trader is analyzing a bar in the 10-Year Treasury (ZN). Th… — What does this suggest?
- 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