medium · Order Flow Analysis order-book-dom
In ES, price is approaching the overnight low of $4,505.00. A large iceberg bid is detected: 600 contracts trade at the bid price of $4,505.00 while the visible bid quantity never exceeds $50.
How should an order flow trader react?
- Wait for the iceberg to be 'taken out' before entering in the direction of the break.
- Enter short because 600 contracts of selling hitting the bid shows aggressive bearishness.
- Ignore the level because the 'displayed' volume is too small to be institutional.
- Enter long with a stop below $4,505.00, as an institution is using the overnight low to accumulate a large position.
Sign up free to see the explanation and track your rank →
More Order Flow Analysis order-book-dom practice
- Based on the market-specific characteristics provided, how should the trader treat this si
- An order flow trader notices an iceberg buy order at $4505.0… — How should this informatio
- Which of the following describes the 'Initial Balance' (IB) and its relationship to instit
- What is the correct trade entry and logic?
- What will an order flow trader see in the footprint over several bars if the price holds 3
- You are watching the bid in Corn at 375.00. The order book s… — What is this?
- A trader identifies a 'Trapped Seller' pattern at a session… — Where is the invalidation p
- You are analyzing a price level where 1,450 contracts traded… — What is most likely occurr