medium · Order Flow Analysis footprint-delta
A trader is monitoring Crude Oil (CL) and notes that as the price rallies, the 'Ask Volume' is significantly higher than 'Bid Volume' but total volume is declining.
What does this suggest about the trend health?
- The trend is weakening as buying conviction evaporates at higher prices.
- The trend is strong because aggressive buyers are still in control.
- Sellers are entering the market to absorb the buying pressure.
- The market is moving into a high-volume node (HVN) of acceptance.
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