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?
- Yes; positive delta on the rally bar shows the trend has now reversed to bullish.
- No; positive delta is expected on a pullback as buyers bring price to the sellers.
- Yes; you should only initiate the short once every bar in the sequence shows negative delta.
- No; delta is a lagging indicator and should be ignored during pullbacks.
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