easy · Order Flow Analysis footprint-delta
A trader notices a bearish divergence at a high. They want to enter, but see that the next bar has already moved 5 ticks lower.
What is the best entry technique to maintain a good risk-to-reward ratio?
- Place a limit sell order at the midpoint of the previous bar's range.
- Ignore the trade because the first 5 ticks 'belong to the algorithms'.
- Enter at market immediately to ensure the trade is not missed.
- Wait for the price to break the previous day's low before entering.
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