medium · Order Flow Analysis order-book-dom

A trader observes 'unfinished business' at the low of a Crude Oil (CL) bar.

According to order flow principles, what is the market's likely behavior in the near future?

  1. The level becomes permanent support since it shows that no aggressive sellers were present at that price.
  2. The market will immediately enter a high-volatility stop-run cascade that moves sharply in the opposite direction.
  3. The market will likely return to revisit that low price to 'complete' the auction within the next few sessions.
  4. It indicates an Iceberg order was resting at the low and successfully absorbed all incoming aggressive selling.

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