easy · Order Flow Analysis market-mechanics-execution

When observing Time & Sales (the tape), what does a sudden acceleration in the rate of prints typically signal to an order flow trader?

  1. A period of low volatility where price is likely to consolidate.
  2. The withdrawal of institutional participants from the market.
  3. A 'thin' market where the bid-ask spread is likely to widen significantly.
  4. Increased participation and a surge in market urgency.

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