medium · Order Flow Analysis absorption-exhaustion-imbalance
During an 'Absorption Breakout' setup in Crude Oil (CL), price has been stuck in a narrow range for 20 minutes with high bilateral volume. A breakout bar then closes 8 ticks above the zone.
Which footprint signature confirms this as a 'Genuine' breakout rather than a 'False' one?
- Negative delta is observed on the breakout bar as aggressive sellers are finally capitulating.
- Bar volume is above average and stacked buying imbalances are present through the breakout prices.
- Total volume on the breakout bar is lower than during the absorption phase, indicating a lack of sellers.
- The COT is located in the middle of the absorption zone, suggesting the 'point of control' is migrating higher.
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