medium · Order Flow Analysis order-book-dom
You are watching a rally in Crude Oil (CL). Price hits 72.50, and 850 contracts trade at the offer in 30 seconds, yet the offer size of 40 lots keeps 'refreshing' and the price does not tick up to 72.51.
What is occurring?
- Market makers are pulling their offers, creating a liquidity vacuum to the upside.
- Aggressive buyers are successfully sweeping the book and preparing for a breakout.
- A refreshing offer (Iceberg) is absorbing aggressive buying, capping the rally.
- The auction is unfinished, and the market must probe higher to find sellers.
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