medium · Order Flow Analysis absorption-exhaustion-imbalance
A bar in the ES shows a stacked buying imbalance at its low but closes at its open (neutral candle) with a near-zero delta.
What is the most likely microstructure interpretation?
- Institutional participants are liquidating longs at the low
- Aggressive buying at the low was absorbed by passive sellers
- A breakout is imminent in the direction of the imbalance
- The market has entered a liquidity vacuum
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