easy · Order Flow Analysis absorption-exhaustion-imbalance
A trader sees a 'Stacked Buying Imbalance' across three prices: $4510.00, $4510.25, and $4510.50. The market then rallies to $4520.00 and begins to pull back.
According to the structural stop-placement guide, where should the stop be placed if entering long on a retest of this zone?
- Five ticks below the entry price to allow for market noise.
- One tick below the lowest price of the zone ($4509.75).
- One tick above the highest price of the zone ($4510.75).
- At the session VWAP, regardless of where the zone is located.
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