hard · Order Flow Analysis
An order flow trader sees a Wick–Body Imbalance signal on a bar at a resistance level. The upper wick shows buying imbalances, but the body shows stacked selling imbalances and a red close.
What is the execution logic?
- Wait for a retest of the lower wick before entering short
- Short at the VWAP price only, stop at the bar midpoint
- Long on the breakout above the wick, stop at the bar low
- Short at the close of the bar, stop above the wick high
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