medium · Order Flow Analysis market-mechanics-execution
Why does price often accelerate rapidly in a 'liquidity vacuum' move when passing through certain price zones?
- The limit order book is thin, meaning small aggressive volume consumes multiple levels easily.
- High-frequency traders flood both the bid and ask with equal resting size there.
- The market has reached the session Point of Control, where facilitation runs highest.
- Large institutional passive buyers are quietly absorbing every incoming market sell order arriving there.
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