medium · Order Flow Analysis market-mechanics-execution
A trader sees the tape accelerating with many small market buy orders hitting the offer as price moves toward a major resistance level. Suddenly, price stops moving despite continued high-frequency buy prints.
What is the most likely structural cause?
- The market is experiencing a slippage event due to a thin book.
- Passive sellers are absorbing the aggressive buy orders.
- A liquidity vacuum is forming above the resistance level.
- Retail traders are selling at the bid to exit their positions.
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