medium · Order Flow Analysis footprint-delta
On a 5-minute footprint, a single price level shows 1,200 traded at the bid and 400 at the offer (delta -800), yet price does not break below that level on this bar or the next two — it holds and then rallies. A second level the same session shows 300 at the bid and 1,100 at the offer (delta +800) but price stalls and rolls over from it.
Reconciling both, which order-flow principle is being demonstrated?
- Heavy aggression that fails to move price reveals the opposite-side passive participant as the stronger hand, so absorbed sellers became support and absorbed buyers became resistance
- Delta sign always predicts the very next price move, so the -800 level should have broken down immediately and the +800 level should have broken up, making this sequence anomalous
- The two levels simply cancel each other out because their deltas are equal and opposite in sign, so neither should carry any directional consequence for price going forward
- Larger total traded volume at a given price level always marks it as durable support regardless of the underlying delta sign, which is supposedly why both levels reversed price this session
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