medium · Order Flow Analysis footprint-delta
An order flow trader sees a red candlestick (bearish close) but the footprint reveals a 'Wick-Body Imbalance' where the upper wick has buying imbalances and the body has stacked selling imbalances.
What is the psychological state of the buyers in the wick?
- They successfully defended the Value Area High as buyers absorbed selling there.
- They are in profit, having bought near the low before price rallied.
- They are underwater and will likely sell to exit, fueling further decline.
- They are waiting to buy more as price retraces to their level, viewing it as support.
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