easy · Order Flow Analysis absorption-exhaustion-imbalance
A trader observes a 'Wick-Body Imbalance' setup in Crude Oil. The bar has a lower wick containing selling imbalances and a green body containing stacked buying imbalances.
Where should the entry and stop be placed?
- Short entry at the top of the body; stop above the bar high.
- Market sell entry below the wick.
- Long entry only if delta is negative.
- Long entry on the next bar's open; stop below the lower wick's low.
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