hard · Order Flow Analysis absorption-exhaustion-imbalance
Calculate the R_top ratio for a CL bar where ask volume at the high of 74.50 is 420 and ask volume at 74.49 is 135.
What is the signal?
- Neutral signal (R_top = 0.68), suggesting the market is in equilibrium.
- Weak exhaustion signal (R_top = 0.32), suggesting a trend continuation is likely.
- Strong 'cap' signal (R_top = 0.32), indicating an institutional seller at the extreme.
- Strong breakout signal (R_top = 3.11), indicating aggressive and sustained initiative buying.
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