medium · Order Flow Analysis absorption-exhaustion-imbalance

How should a trader interpret a negative delta on a pullback toward a pre-identified 'Stacked Buying Imbalance' zone?

1. As a reason to double the position size to take advantage of the apparent discount.
2. As a signal that the buying zone has already been fully invalidated by aggressive sellers.
3. As a healthy sign that sellers are bringing price back to the institutional support level.
4. As a 'false' signal, since delta and price direction are already in full agreement here.

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