hard · Order Flow Analysis
A trader sees large bilateral volume (1,500 contracts on both bid and ask) at a single price level in the ES, with the market ranging within 3 ticks for 20 minutes.
What is the distinction between this and consolidation?
- Absorption occurs at session highs; consolidation occurs at session lows.
- Absorption is always bullish; consolidation is always neutral.
- Absorption involves high active participation; consolidation involves low interest/waiting.
- There is no functional difference; both represent a pause in the market.
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