hard · Order Flow Analysis order-book-dom

You are watching an Iceberg order in Corn (ZC) at $375.00 on the bid. The visible quantity is 45 contracts. Over several minutes, 420 contracts trade at the bid, but the bid price never breaks.

What is the correct trade entry and logic?

  1. Buy at $375.25 with a stop at $374.75, using the Iceberg as a 'floor'.
  2. Sell at $375.00 because the high volume indicates sellers will eventually break the level.
  3. Place a buy limit at $374.75 to catch the 'stop-run' when the Iceberg is taken out.
  4. Wait for a buying imbalance to form at $375.00 before entering.

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