hard · Order Flow Analysis footprint-delta
Crude Oil (CL) prints three consecutive 5-minute bars, each making a higher high than the last. Bar 1 has Δ = +900, Bar 2 has Δ = +400, and Bar 3 makes the highest high of the sequence with Δ = -250. Cumulative Δ across the full session, however, is still rising into Bar 3 and sits near its session high.
How should the trader weigh the bar-3 divergence against the session cumulative Δ trend?
- Ignore it completely, since a rising session cumulative Δ overrides any single bar's negative reading.
- Treat it as an early local exhaustion warning, since the session uptrend itself has not yet actually turned down.
- Treat it as full session-level reversal confirmation, since three straight bars of weakening delta already proved distribution.
- Discard the whole sequence as noise, since a single bar's sign contradicting the session total means the data is unreliable.
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