medium · Order Flow Analysis absorption-exhaustion-imbalance
A trader is short from 4,520.00 based on a stacked selling imbalance. Price drops to 4,515.00 and a new bar forms with buying imbalances at the low and a strongly positive delta.
What is the 'Conflicting Signal' protocol?
- Add to the short position as the buying is likely just a 'stop run'
- Move the stop-loss to the original entry and wait for Target 2
- Exit at least 50% of the position to lock in profit and reduce risk
- Ignore the delta of the pullback bar as it is naturally positive
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