medium · Order Flow Analysis footprint-delta
A trader is using a 400% diagonal imbalance threshold. In the footprint, the bid volume at 4,514.75 is 110, and the ask volume one tick higher at 4,515.00 is 620.
Is this a buying imbalance?
- No, because the volume at both levels must exceed the daily average to be valid.
- No, because imbalances must be calculated horizontally at the same price level.
- Yes, but only if the total volume for the bar is higher than the previous session.
- Yes, because the ratio of 620 / 110 is approximately 5.64, which exceeds 4.0.
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