easy · 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.
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