easy · Order Flow Analysis market-mechanics-execution
You see price consolidate in a very tight range for 20 minutes exactly on the VWAP line. Total volume is high, but delta is near zero.
What does this indicate?
- The exchange matching engine is experiencing a 'latency' event.
- Retail traders are 'trapped' on both sides and will be liquidated soon.
- The market is 'thin' and a massive move is about to occur due to lack of interest.
- The market is in 'Equilibrium' or 'Absorption,' where buyers and sellers are perfectly matched at the day's fair value.
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