medium · Order Flow Analysis absorption-exhaustion-imbalance

Why do markets typically fall faster than they rise, as explained through order flow mechanics?

1. There are more sellers than buyers in the world.
2. Bids are often pulled during declines, and long liquidations trigger market sell orders that hit thin bids.
3. Buying is always a passive activity while selling is always aggressive.
4. The exchange limits how fast prices can rise but not how fast they can fall.

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