medium · Order Flow Analysis footprint-delta
A trader identifies a 'bearish divergence' at a session high: price makes a new high at 1.1250 in 6E, but the bar delta Δ is -150 and cumulative delta is trending lower.
How does the 'Multi-bar Framework' suggest managing this trade?
- Scale out at the first target (pullback), and trail the remainder to capture a potential multi-bar trend reversal.
- Hold the position for the session low, since divergence signals reliably precede full trend reversals.
- Wait for price to breach the divergence high first, so all resting stop orders above the level are cleared out.
- Only take the trade if the daily bias is also bearish; standalone intraday divergences carry too little weight.
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