easy · Order Flow Analysis absorption-exhaustion-imbalance
In a 5-minute bar, you see buying imbalances in the upper wick but a stacked selling imbalance in the body, and a red close.
What is the narrative of this bar?
- Buyers tried to push the high but were overwhelmed by sellers who took control and drove price down.
- This is a balanced auction where fair value was found precisely at the bar's volume-weighted midpoint.
- The market remains in a healthy uptrend since aggressive buying pressure is still clearly visible up in the wick.
- Institutional buyers are absorbing the selling pressure down at the low of the bar's body.
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