medium · Order Flow Analysis absorption-exhaustion-imbalance
A 5-minute ES bar shows a high of 4,532.00 where 850 contracts were bought aggressively (ask volume), but the bar eventually closes at 4,528.50.
What is the likely market implication of this 'COT-at-high' signal?
- Bullish, because 850 contracts represents significant institutional interest in the high.
- Neutral, as the volume at the high represents standard market-making activity.
- Bearish, as massive passive selling absorbed the aggressive buying and trapped the buyers.
- Bullish, because the high Engagement Zone (COT) is near the top of the range.
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