easy · Order Flow Analysis absorption-exhaustion-imbalance
The market opens with a 15-point gap up. In the first 5 minutes, a stacked selling imbalance forms at the opening price and the Delta is strongly negative (-1,200).
Which gap scenario is unfolding?
- Gap-and-Fill; institutions are selling the gap and expecting price to return toward yesterday's close.
- Initial Balance expansion; the market is establishing a new daily high.
- Gap-and-Stall; the market is waiting for news to decide the direction.
- Gap-and-Go; the negative delta represents sellers being trapped by the high open.
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