medium · 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.
Sign up free to see the explanation and track your rank →
More Order Flow Analysis absorption-exhaustion-imbalance practice
- During the first 30 minutes of the RTH session, the E-mini S… — If the price breaks above
- A trader is analyzing a bar in the 10-Year Treasury (ZN). Th… — What does this suggest?
- A 5-minute ES bar shows buying imbalances in the upper wick… — What is the narrative of th
- Where should the entry and stop be placed?
- An ES footprint bar shows a high at $4518.00 with 3 contract… — How should this volume pat
- What market phenomenon is occurring?
- The treatise mentions a 'Self-Reinforcing Feedback Loop' reg… — What does this mean for pr
- A market opens with a 10-point gap up. In the first 15 minutes, the footprint shows heavy