easy · Order Flow Analysis absorption-exhaustion-imbalance
If price is currently trading at 2 standard deviations below the Volume-Weighted Average Price (VWAP - 2σ) and a stacked buying imbalance appears on the footprint, what is the professional recommendation?
- Avoid trading as VWAP is lagging data
- High priority long entry
- Sell the continuation as price is trending strongly down
- Wait for price to cross above VWAP before buying
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