medium · Order Flow Analysis absorption-exhaustion-imbalance

A trader identifies a stacked selling imbalance in the Euro FX futures (6E) spanning 1.0980, 1.0979, and 1.0978. The market sells off to 1.0970 and then retraces.

At what level should a structural stop-loss be placed for a short entry at 1.0979?

  1. 1.0982
  2. 1.0970
  3. 1.1000
  4. 1.0977

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