medium · Order Flow Analysis footprint-delta
When comparing two bars on a volume-based chart, one bar has a price range of 20 ticks and the other has a range of 4 ticks.
If both bars have a volume of 5000 contracts, what does the 4-tick bar suggest?
- High slippage caused by a very thin order book at this level.
- Exhaustion, since the market simply ran out of 'fuel' to move price.
- Heavy absorption where both sides are fighting in a narrow range.
- A 'Gap and Stall' scenario that typically occurs right at the market open.
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