medium · Order Flow Analysis absorption-exhaustion-imbalance

A 15-minute Corn (ZC) bar at a session low of $365.00 shows 1,200 contracts on the Bid and $150 on the Ask. The next bar closes higher with a Δ of +400. Two bars later, price returns to $365.25.

Which condition makes this a 'Slam Dunk' long trade?

  1. Cumulative Δ instead makes a fresh new low while price recovers to $365.25 on the chart.
  2. Confluence: Passive absorption at $365.00, positive Δ on recovery, and VWAP is above current price.
  3. The session's market open was simply a gap down that has still not yet been filled by price action.
  4. The retest bar instead shows clear and quite persistent diagonal selling imbalances printing through $365.25.

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