hard · Order Flow Analysis footprint-delta
A trader observes a delta divergence where price makes a lower low but the bar delta is +1,500. However, the bar closes at its low.
What is the correct interpretation?
- The delta reading is likely an error from the exchange's matching engine
- This is a textbook 'Slam Dunk' buy signal due to the extreme bullish delta divergence
- The divergence is 'failed' or 'absorbed' by an even stronger passive seller
- Retail traders are 'trapped' short at the low and will be forced to cover on any bounce
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