medium · Order Flow Analysis footprint-delta
A Director of Trading notes a 'Bearish COT' at the high of a bar. Specifically, the P_COT (Commitment of Traders/Bar POC) is at the high, but the bar closes 10 ticks lower.
Why is this bearish?
- The market is simply in an equilibrium state at the high.
- Aggressive sellers swept through the order book to reach the high.
- Aggressive buyers at the high were absorbed and are now trapped.
- Sellers were unable to find any resting liquidity to sell into near the high.
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