easy · Order Flow Analysis absorption-exhaustion-imbalance
What is the primary difference between 'consolidation' and 'absorption' as seen in order flow data?
- Absorption requires price movement, while consolidation does not.
- Consolidation occurs at session highs, while absorption occurs at session lows.
- Consolidation is caused by institutional participants, while absorption is caused by retail noise.
- Consolidation is characterized by low volume, while absorption is characterized by high volume.
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