medium · Order Flow Analysis tape-reading-time-sales
How does 'Tape Acceleration' differ in meaning between a liquid market (like ES) and a thin market?
- In liquid markets it usually indicates institutional urgency; in thin markets it can be a single small participant.
- Acceleration in thin markets is always caused only by one small retail trader acting alone, never institutional flow.
- Tape acceleration only occurs in liquid, high-volume markets and is structurally impossible to observe in a thin, illiquid market.
- It means exactly the same thing in both markets and always signals an imminent reversal is near.
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