medium · Order Flow Analysis absorption-exhaustion-imbalance
On a daily chart of Corn (ZC), a bar makes a new high but shows a massive buying imbalance at the top tick, while the bar itself closes lower.
What is the interpretation for the next month?
- The market is in a sustained bullish trend due to the high level of daily demand.
- The market is in equilibrium overall, as shown by the balanced two-sided daily absorption.
- This is a daily-timeframe trapped buyer pattern, suggesting a potential long-term reversal.
- Wait for the classic 'Unfinished Business' setup to be completed at the low of this daily bar.
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