medium · Order Flow Analysis absorption-exhaustion-imbalance
After a breakout from a long absorption zone in Crude Oil (CL), the next bar has very thin volume and no imbalances.
What is the most likely outcome?
- The market is simply resting quietly before a massive continuation move develops.
- The absorption zone has successfully trapped every remaining seller.
- The breakout is 'false' and price will likely return to the absorption zone.
- The trader should add aggressively to the position since there is clearly no resistance left.
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