medium · Order Flow Analysis absorption-exhaustion-imbalance
A trader is monitoring a 15-minute CL bar. At the high of 74.50, the ask volume is 420 contracts. At 74.49, the ask volume is 135 contracts. The bar closes lower.
What is the R_top ratio and its signal?
- R ≈ 0.32, signifying a thin 'single-print' exhaustion high with no resting volume.
- R ≈ 1.0, signifying a standard, fully balanced two-sided auction taking place at the high.
- R ≈ 0.32, signifying a 'top-heavy' bar where an institutional seller is capping the high.
- R ≈ 3.11, signifying a strong initiative buying breakout that continues with solid follow-through.
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