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 are flooding the bid and ask with equal liquidity.
- The market has reached the Point of Control where trade facilitation is highest.
- Large institutional passive buyers are absorbing all incoming market sell orders.
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