Order Flow Patterns

An iceberg represents a large resting limit order concentrated at a single price level, partially concealing full order size. Book sweeping occurs when a single large market order consumes multiple resting limit orders simultaneously, producing a rapid one-sided move. An absorption occurs when large aggressive orders at a level are absorbed by the opposing side, and price closes in the opposite direction without follow-through. A strong low requires high volume both on the downward move and on the recovery, distinguishing it from a weak low. A failed auction occurs when price breaks outside an established range but closes back inside it, typically activating a trade toward the opposite side of the range. In a book sweep, participants prioritize speed over price quality, indicating urgency to exit or enter regardless of slippage. When price breaks through an iceberg level, a strong directional drift typically follows because the large participant has committed their full position. A failed auction setup requires both order flow confirmation (visible absorption at the extreme) and price action confirmation (close back inside the range).