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 'single-print' exhaustion high.
- R ≈ 1.0, signifying a standard balanced auction.
- R ≈ 0.32, signifying a 'top-heavy' bar where an institutional seller is capping the high.
- R ≈ 3.11, signifying an initiative buying breakout.
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