medium · Order Flow Analysis absorption-exhaustion-imbalance
In a $10,000-Volume chart for the ES, Bar 1 has a price range of 8 ticks and a Δ of +200. Bar 2 has a price range of 2 ticks and a Δ of -150. Both bars have exactly 10,000 contracts.
What is the most significant takeaway from Bar 2?
- The market has reached stable equilibrium, reflecting zero institutional flow.
- Heavy absorption is occurring, suggesting a potential directional breakout is imminent.
- Liquidity is drying up across the order book, explaining why the price range has contracted.
- Selling pressure is clearly increasing this session, as shown by the bar's negative delta reading.
Sign up free to see the explanation and track your rank →
More Order Flow Analysis absorption-exhaustion-imbalance practice
- What market phenomenon is occurring?
- Where is the most structurally sound place to put the stop loss for a short entry?
- A trader is analyzing a bar in the 10-Year Treasury (ZN). Th… — What does this suggest?
- During the first 30 minutes of the RTH session, the E-mini S… — If the price breaks above
- Where should the entry and stop be placed?
- The treatise mentions a 'Self-Reinforcing Feedback Loop' reg… — What does this mean for pr
- According to the structural stop-placement guide, where should the stop be placed if enter
- A market opens with a 10-point gap up. In the first 15 minutes, the footprint shows heavy