hard · Order Flow Analysis
In Corn futures (ZC), you identify a stacked selling imbalance at 368.00, 367.75, and 367.50 with bid volumes near 500 per level. Typical single-level volume for ZC is 80-150.
How should the position size be adjusted for this setup compared to a standard setup?
- Increase to maximum position size because the absolute volume is 3x to 5x the market's normal level, indicating massive institutional conviction.
- Stay with standard sizing, as imbalances in ZC are less reliable than in the ES or ZN.
- Decrease position size because high volume often leads to increased slippage on entry.
- Pass on the trade as bid volume of 500 is too low to represent institutional activity in any futures market.
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