Today’s session demonstrated how multiple Orderflow concepts aligned to produce a high-probability short opportunity. Price initially respected the Auction Zero (Concept 1) zone, where buyers attempted to continue the up move. However, buyer absorptions (Concept 2) repeatedly failed to generate meaningful upside despite aggressive buying, indicating that passive sellers were absorbing the buying pressure.
As price approached the swing high, a clear imbalance (Concept 3) highlighted weakening buyer conviction. The overlapping Auction Zero zone then acted as a successful retest and resistance area, confirming that buyers had lost control. Once sellers regained initiative, strong seller follow-through (Concept 4) confirmed acceptance at lower prices, resulting in the intraday decline.
This session demonstrates how Auction Zero, Absorptions, Imbalances, and Seller Follow-through complement each other. While each concept is valuable individually, their alignment within the correct market context significantly increases the probability of identifying high-quality trading opportunities.
Key Learnings
- Concept 1 – Auction Zero: The previous Auction Zero zone acted as resistance during the retest.
- Concept 2 – Buyer Absorptions: Aggressive buying was absorbed without producing higher prices, signalling hidden selling interest.
- Concept 3 – Imbalances: Buying imbalances near the high failed to sustain the move, highlighting weakening buyer strength.
- Concept 4 – Seller Follow-through: Sellers successfully accepted price lower, confirming the bearish continuation.
To learn the complete Orderflow Concepts by SG, visit the Orderflow with SG YouTube Channel and explore our educational articles for a deeper understanding of each concept and its practical market application.
Thanks for sharing this trade and clear explanation. However, I have a query Sir, in picture where candle S>B, had it been made just below the previous candle, still would you enter the trade. Of course in such case I am also assuming that no Auction Zero seen at the previous candle. Also, volume were dried while re-tracement, so shouldn’t we plan re-entry in such scenario?