medium · Order Flow Analysis absorption-exhaustion-imbalance
A trader is waiting for a pullback to a 'Stacked Buying Imbalance' zone to enter long. The pullback bar arrives with a Delta of -600.
How should the trader respond?
- Cancel the buy order because the negative delta indicates sellers are now in control.
- Reverse the trade and go short, following the aggressive sellers in the pullback bar.
- Wait for a bar with +600 Delta before entering at the zone.
- Ignore the pullback delta and judge the trade by the footprint at the zone itself.
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