medium · Order Flow Analysis absorption-exhaustion-imbalance
A trader observes price making a new session low with a 'Single Print' (volume = 3) and a large volume ratio relative to the adjacent tick. This is followed by a bullish close and positive delta.
What is the entry protocol?
- Enter long on the next bar, placing a structural stop 1 tick below the single print low.
- Sell the first rally, as the single print indicates a lack of interest at lower prices.
- Wait for a stacked selling imbalance to confirm the downtrend before entering long.
- Short at the single print price, targeting a 'fill' of the thin volume area.
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