medium · Order Flow Analysis footprint-delta
Why is it recommended to ignore the Δ of a bar that is pulling back to a long entry zone?
- Because pullbacks are always driven purely by passive limit orders resting in the book, which never affect Δ.
- Because a pullback naturally requires aggressive sellers to move price toward the zone, resulting in negative Δ.
- Because Δ is only ever accurate on volume-based charts, and is never a reliable measure on time-based charts like this one.
- Because Δ is fundamentally a lagging indicator by nature, and only works reliably in strongly trending markets with volume.
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