Order Flow Trading Strategy: How A Market Can Rally On Aggressive Selling

Posted by on Jan 25, 2023 in Blog

Do you every wonder why a market rallies on aggressive selling? Well in this video I explain how the aggressive selling is met by strong passive buying which results in the negative delta and selling imbalances.

When there is aggressive selling but it is met with strong passive liquidity in the market, the market won’t go down. In fact it will probably go up instead because traders are absorbing the aggressive selling taking place. Once the aggressive selling ends, there is no more downward pressure on the market and the market will most likely rally.