medium · Order Flow Analysis footprint-delta

When a market makes a new high on high positive delta but then immediately reverses, what does this suggest about the aggression?

  1. Cumulative delta is just a lagging indicator that traders should ignore.
  2. The aggressive buying was absorbed by large passive sellers or reached exhaustion.
  3. Aggressive buyers successfully swept through all the available resting liquidity.
  4. Market makers were simply unable to provide any resting bids near the newly printed high.

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