Delta rising at 2nd W leg + absorption

Instrument : E-mini S&P500 futures

Date : 2020-07-07 14:40

We have an interesting reversal pattern at the W second leg because some liquity has been added below the first leg. Let’s zoom into it…

After the second leg, we can see that the volume delta is rising, we could have two entries :

  • The aggressive one when the buyers take the hands over the sellers while the delta is rising
  • the more conservative one at a retest that fails. We had a big drop in delta with a sellers absorption (big red volume), you can enter and bet on a up move starting from this point, that’s a nice confirmation.

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