medium · Order Flow Analysis market-mechanics-execution
The E-mini S&P 500 (ES) opens at 4525.00. You observe a 5-minute footprint bar where the topmost price level has a bid volume of 25 contracts and an ask volume of 0 contracts at the next tick above.
What does this 'unfinished business' suggest for the session?
- Sellers have established a 'cap' and the high is likely to hold.
- The auction at the high is incomplete and price will likely revisit the level.
- The market is in equilibrium and will likely range-trade.
- The market has reached total exhaustion and a reversal is imminent.
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