medium · Order Flow Analysis absorption-exhaustion-imbalance
When price reaches a 1.618 Fibonacci downside extension level and the footprint shows 1,200 lots traded at the bid versus only 150 at the ask in ES, yet price fails to break lower, the trader is observing:
- Responsive buying (Absorption)
- A stacked buying imbalance
- Initiative trend reversal
- Initiative selling into a vacuum
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