easy · Order Flow Analysis absorption-exhaustion-imbalance
If you are short and see massive absorption (high bid volume, small delta) at a support level, what is the safest management action?
- Exit the position or move the stop to breakeven, as the move may be ending.
- Switch to a higher timeframe chart to hide the absorption.
- Add to the short position to help break the support.
- Ignore the signal until the candlestick closes red.
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