Another common mistake is when traders look at the ladder/market debt, and huge size imbalance is seen but its spread a few ticks around the current spread. That size imbalance induces traders to step infront of the size imbalance, lets say the size imbalance was sell side, at 1407, some may step up and try to sell at 1406.50. That size imbalance is maintained till the same market participant who placed that size imbalance fills his longs from people stepping infront of his size placement on the sell side. Then boom he removes the size imbalance, and all those traders who stepped infront of it are trapped short and the market pushes higher. That size imbalance is trap. It just happened a few minutes ago. The size imbalance is meant to trap people. And it uses the people who are trapped to push higher.
I have a cool indicator to analyze market depth/size imbalance trading. If anyone is using a platform that you can draw the data off of in realtime I will give you the details of it for you to program. PM me, I dont mind giving it away.