medium · Order Flow Analysis order-book-dom
In a 10-Year Treasury (ZN) market, a diagonal comparison shows 520 contracts at the bid vs. 150 contracts at the offer one tick up.
Why might a professional trader ignore this 347% ratio?
- Diagonal reading is only applicable to equity indices like ES and NQ
- The ratio must be at least 400% to be valid in interest rate futures
- The price level was a Fibonacci retracement, which overrides order flow data
- The absolute volume is too low to represent institutional conviction in ZN
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