easy · Order Flow Analysis absorption-exhaustion-imbalance

What is the primary difference between 'consolidation' and 'absorption' as seen in order flow data?

  1. Absorption requires price movement, while consolidation does not.
  2. Consolidation occurs at session highs, while absorption occurs at session lows.
  3. Consolidation is caused by institutional participants, while absorption is caused by retail noise.
  4. Consolidation is characterized by low volume, while absorption is characterized by high volume.

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