medium · Order Flow Analysis footprint-delta

In a bearish trend, you see a rally toward a stacked selling zone. The rally bar has positive delta.

Should this bar's delta prevent you from taking a short entry at the zone?

  1. Yes; positive delta indicates the trend has reversed to bullish.
  2. No; positive delta is expected on a pullback as buyers bring price to the sellers.
  3. Yes; you should only sell when every bar in the sequence has negative delta.
  4. No; delta is an lagging indicator and should be ignored during pullbacks.

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