medium · Order Flow Analysis absorption-exhaustion-imbalance
An order flow trader sees a Wick–Body Imbalance signal on a bar at a resistance level. The upper wick shows buying imbalances, but the body shows stacked selling imbalances and a red close.
What is the execution logic?
- Wait for a retest of the lower wick before entering short
- Short at the VWAP price only, stop at the bar midpoint
- Long on the breakout above the wick, stop at the bar low
- Short at the close of the bar, stop above the wick high
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