medium · Order Flow Analysis absorption-exhaustion-imbalance
You enter a long position in CL at $72.55 following an absorption breakout. After 20 minutes, the price is oscillating between $72.52 and $72.57, and the Δ has turned neutral.
According to professional trade management, what should you do?
- Add to the position because the neutral Δ indicates 're-absorption' before the next leg up.
- Move the stop to $72.40 to give the trade more room to breathe during this period of consolidation.
- Exit at market (e.g., $72.53) because the 'time stop' has fired and the breakout thesis has lost its momentum.
- Hold until the structural stop at $72.46 is hit, as time is irrelevant to price action.
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