easy · Order Flow Analysis absorption-exhaustion-imbalance
Why is a 500-lot stacked selling imbalance in ES considered a 'moderate' signal while the same 500-lot imbalance in Corn (ZC) is considered a 'massive' signal?
- Corn futures are dominated by retail day traders who structurally cannot manage 500 lots.
- Relative volume; 500 lots is near-average for ES but 3-5x the normal single-level volume for Corn.
- Corn is simply a faster-moving market, so raw contract volume matters less there than price speed itself.
- The tick value of Corn is much higher than ES's, making every contract traded there far more significant overall.
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