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 have successfully defended the Value Area High (VAH).
- They are comfortably in profit as they bought at a discount.
- They are underwater and will likely sell to exit, fueling further decline.
- They are waiting to buy more as the price retraces to their level.
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