medium · Order Flow Analysis footprint-delta
If price makes a new low for the day but the bar's delta is strongly positive and the COT is located at the low, what is the most likely mechanical cause of this 'Bullish Divergence'?
- Institutional VWAP algorithms quietly liquidating long positions near the best price.
- A thin stop-run pushed price lower, followed by heavy passive institutional absorption at the low.
- A failure within the limit order book, where resting bids were suddenly pulled amid volatility.
- Aggressive sellers successfully 'capping' the market from above to prevent any meaningful rally from forming.
Sign up free to see the explanation and track your rank →
More Order Flow Analysis footprint-delta practice
- An E-mini S&P 500 footprint bar shows a price level at $4510… — Using a 300% threshold, wh
- If both bars have a volume of 5000 contracts, what does the 4-tick bar suggest?
- What is the primary advantage of using the range-based chart in this scenario?
- Why is it recommended to ignore the Δ of a bar that is pulling back to a long entry zone?
- A trader is looking for a short entry. They see a red candle… — What does this 'Wick-Body'
- A trader sees the price of Crude Oil (CL) drop to $72.50, wh… — How should this be interpr
- In the Euro FX ($6E), you see 944 contracts bought aggressiv… — What does this suggest abo
- A footprint bar's high shows bid volume at $4530.00 but zero ask volume at $4530.25. This