medium · Order Flow Analysis absorption-exhaustion-imbalance
A trader is short 5 ES contracts based on a valid stacked selling imbalance. Price drops 10 ticks into profit, but a new bar forms showing 180 bid / 620 ask at the low (a buying imbalance) with a delta of +1200.
According to the conflicting-signals protocol, what is the most professional action?
- Hold the full position until the original structural stop-loss is hit.
- Double the short position size right now to overpower the new aggressive buyers.
- Exit at least 50% of the position to lock in profit or exit the full position.
- Move the stop-loss down to the exact price low that was printed on this new opposing bar.
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