medium · 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 is likely an error from the exchange matching engine
- This is a 'Slam Dunk' buy signal due to the extreme divergence
- The divergence is 'failed' or 'absorbed' by an even stronger passive seller
- Retail traders are 'trapped' short at the low
Sign up free to see the explanation and track your rank →
More Order Flow Analysis footprint-delta practice
- An E-mini S&P 500 footprint bar shows a price level at $4510… — Using a 300% threshold, wh
- What is the primary advantage of using the range-based chart in this scenario?
- A trader is looking for a short entry. They see a red candle… — What does this 'Wick-Body'
- If both bars have a volume of 5000 contracts, what does the 4-tick bar suggest?
- Why is it recommended to ignore the Δ of a bar that is pulling back to a long entry zone?
- In the Euro FX ($6E), you see 944 contracts bought aggressiv… — What does this suggest abo
- A trader sees the price of Crude Oil (CL) drop to $72.50, wh… — How should this be interpr
- What does a 'Narrow' VWAP standard deviation band width suggest about the current market e