hard · Order Flow Analysis absorption-exhaustion-imbalance
Why does the 'Ratio of adjacent-to-extreme' volume (V_adjacent / V_extreme ≥ 28) serve as a strong exhaustion signal?
- It represents an application of the Fibonacci golden ratio to order flow market microstructure patterns
- It means the market is currently in a state of high-volatility initiative trend activity
- It suggests market makers are spoofing the tape by faking 28 times more resting volume than they actually trade
- It quantifies that participation at the extreme tick was negligible compared to the rest of the bar
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