medium · Order Flow Analysis absorption-exhaustion-imbalance
A bar makes a new session high, but the footprint shows a 'Commitment of Traders' (COT) at the very high price level followed by a close near the low of the bar.
What is the most likely narrative for this bar?
- Initiative buyers are driving a healthy uptrend.
- Sellers are exhausted and price is consolidating for a further move up.
- Aggressive buyers at the high are now trapped.
- HFT market makers are providing equal liquidity on both sides.
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