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?

1. Exit the position or move the stop to breakeven, as the move may be ending.
2. Switch to viewing a higher timeframe chart so the absorption is no longer visible.
3. Add aggressively to the short position to help force a break of support.
4. Ignore the absorption signal entirely until the current candlestick closes red.

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