https://prnt.sc/bs5pjSWqhYFX
Orderflow Analysis — Short Bias Setup
Bias & Context
Overall bias → SHORT
Reason: SMT Divergence showing weakness in price.
After identifying this, I wait for a Fair Value Gap (FVG) and a retracement into that zone to confirm with orderflow.
Step-by-Step Breakdown
1 Fair Value Gap (FVG)
I like to see either no imbalance or 3 stacked imbalances inside the FVG zone.
This gives me a clear inefficiency that price may rebalance into before continuation.
2 Absorption Candle
Buyers trapped: Delta is positive (aggressive buyers),
yet the candle closes bearish → strong absorption by sellers.
This signals that smart money is offloading into late buyers.
3 Confirmation Phase
After the trap candle, I look for seller strength to confirm the bias.
No entry here — rules say wait for confirmation.
It worked out and gave a good entry zone (my SL would’ve been above the FVG)
but sticking to rules > catching every move.
4 Second Absorption Signal
Another delta divergence appears — more buyers than sellers.
Candle still closes bearish, confirming continuous absorption.
This is clearer in futures data, not always visible on FX charts,
but still a strong confluence for the short side.
5 Entry Candle
After the absorption, I finally get a clear sign of seller strength.
Entry could be taken on candle close, confirming shift in orderflow.
Summary
Element Observation
Bias Short (based on SMT divergence)
Confirmation FVG retrace + orderflow absorption
Entry Trigger Seller strength candle close
Stop Loss Above the FVG zone
Overall: A clean and structured short setup — SMT + FVG + Absorption alignment gave a high-probability confirmation. Patience paid off even without entry.
Orderflow Analysis — Short Bias Setup
Bias & Context
Overall bias → SHORT
Reason: SMT Divergence showing weakness in price.
After identifying this, I wait for a Fair Value Gap (FVG) and a retracement into that zone to confirm with orderflow.
Step-by-Step Breakdown
1 Fair Value Gap (FVG)
I like to see either no imbalance or 3 stacked imbalances inside the FVG zone.
This gives me a clear inefficiency that price may rebalance into before continuation.
2 Absorption Candle
Buyers trapped: Delta is positive (aggressive buyers),
yet the candle closes bearish → strong absorption by sellers.
This signals that smart money is offloading into late buyers.
3 Confirmation Phase
After the trap candle, I look for seller strength to confirm the bias.
No entry here — rules say wait for confirmation.
It worked out and gave a good entry zone (my SL would’ve been above the FVG)
but sticking to rules > catching every move.
4 Second Absorption Signal
Another delta divergence appears — more buyers than sellers.
Candle still closes bearish, confirming continuous absorption.
This is clearer in futures data, not always visible on FX charts,
but still a strong confluence for the short side.
5 Entry Candle
After the absorption, I finally get a clear sign of seller strength.
Entry could be taken on candle close, confirming shift in orderflow.
Summary
Element Observation
Bias Short (based on SMT divergence)
Confirmation FVG retrace + orderflow absorption
Entry Trigger Seller strength candle close
Stop Loss Above the FVG zone
Overall: A clean and structured short setup — SMT + FVG + Absorption alignment gave a high-probability confirmation. Patience paid off even without entry.
Lightshot
Screenshot
Captured with Lightshot