medium · Order Flow Analysis absorption-exhaustion-imbalance

Which of the following describes the most disciplined response to 'Conflicting Signals' (e.g., you are short, but a stacked buying imbalance forms below you while your stop is still valid)?

1. Ignore the buying imbalance because the primary daily trend is bearish and 'noise' is expected during pullbacks.
2. Add to the short position to 'average up' the entry price since the original structural thesis (the selling zone) is still unviolated.
3. Exit 50% or more of the position to lock in current profits and reduce exposure to the new opposing force.
4. Move the stop-loss to the absolute high of the new buying imbalance bar to 'tighten' the risk.

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