hard · Order Flow Analysis
A trader identifies a 'bearish divergence' at a session high: price makes a new high at 1.1250 in 6E, but the bar delta Δ is -150 and cumulative delta is trending lower.
How does the 'Multi-bar Framework' suggest managing this trade?
- Scale out at the first target (pullback), and trail the remainder to capture a potential multi-bar trend reversal.
- Hold the full position for the session low, as divergences always lead to trend reversals.
- Wait for price to breach the divergence high before entering, to ensure all stops are cleared.
- Only enter if the daily bias is also bearish, as intraday divergences are too weak to trade alone.
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