medium · Order Flow Analysis absorption-exhaustion-imbalance
In the ES, a bar closes with the COT (Commitment of Traders) at the low, but the candle body is red and the close is at the low.
What is the predictive implication for the next bar?
- Bullish reversal; the buyer volume at the COT proves passive demand has quietly taken control of the tape.
- Exhaustion; the sellers spent all their energy at the COT tick, so a bounce is now imminent on the next bar.
- Neutral; a close at the COT level always represents equilibrium between buyers and sellers on that bar.
- Bearish continuation; aggressive sellers remained in control even at the point of maximum engagement.
Sign up free to see the explanation and track your rank →
More Order Flow Analysis absorption-exhaustion-imbalance practice
- During the first 30 minutes of the RTH session, the E-mini S… — If the price breaks above
- A trader is analyzing a bar in the 10-Year Treasury (ZN). Th… — What does this suggest?
- A 5-minute ES bar shows buying imbalances in the upper wick… — What is the narrative of th
- Where should the entry and stop be placed?
- An ES footprint bar shows a high at $4518.00 with 3 contract… — How should this volume pat
- What market phenomenon is occurring?
- The treatise mentions a 'Self-Reinforcing Feedback Loop' reg… — What does this mean for pr
- A market opens with a 10-point gap up. In the first 15 minutes, the footprint shows heavy