medium · Order Flow Analysis footprint-delta
Yesterday's ES Value Area was $4505.00 (VAL) to $4515.00 (VAH). Today, the market opens at $4508.00. Price drops to $4505.00 and holds there for 15 minutes with 1,800 contracts of bid volume and 1,750 contracts of ask volume.
What is the most appropriate trade plan?
- Buy at $4508.00 (the open), as the market is likely to seek the previous day's close immediately.
- Stand aside; opening inside the Value Area is a 'no-trade' signal until the range is broken.
- Buy the rejection at $4505.00, targeting a rotation back to the POC or VAH.
- Sell the breakout below $4505.00, as the high volume indicates massive initiative selling interest.
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