medium · Order Flow Analysis absorption-exhaustion-imbalance
A trader sees negative delta on a pullback toward a previously identified stacked buying imbalance zone.
What should their action be?
- Ignore the pullback delta and observe the footprint at the zone for defense.
- Flip the bias to short since the buying zone is under active attack.
- Cancel the buy order, since negative delta on the pullback confirms seller control of price.
- Wait for session Cumulative Delta to turn positive before entering the buy.
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