easy · Order Flow Analysis absorption-exhaustion-imbalance
A trader is short 5 contracts and is currently up 10 ticks. A new bar forms with a stacked buying imbalance at the low and a strongly positive delta.
What is the 'Conflicting Signals' protocol recommendation?
- Conservative: exit the entire position. Moderate: exit 3 of 5 contracts.
- Aggressive: double the position size to 'fight' the new buying pressure.
- Move the stop loss further away to give the trade more 'room' to work.
- Ignore the signal unless it breaks your original entry price.
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