Hi Everybody ,

I like to test out new ideas from time to time . My main focus lies on analyzing volume profile & price action - I test & add new ideas to them periodically .

I played with footprint for a while & noticed some interesting things . How imbalances in there vertically & horizontally give more weight or confluence to my original support / resistance . It also shows real intent of market participants so more reliable than traditional order flow in these algo dominated days , in my opinion .

Was trying to apply imbalances & big orders near my price action / VP entries - and it seems it works nicely as a confirmation . I've not enough data to imply that this isn't just some kind of fluke or happenstance .

So, if anybody is also using footprint for their entry confirmation - would love to hear your ideas & what you're looking for around entry price in footprint .

kolbe 

Hi Everybody , I like to test out new ideas from time to time . My main focus lies on analyzing volume profile & price action - I test & add new ideas to them periodically . I played with footprint for a while & noticed some interesting things . How imbalances in there vertically & horizontally give more weight or confluence to my original support / resistance . It also shows real intent of market participants so more reliable than traditional order flow in these algo dominated days , in my opinion . Was trying to apply imbalances & big orders near my price action / VP entries - and it seems it works nicely as a confirmation . I've not enough data to imply that this isn't just some kind of fluke or happenstance . So, if anybody is also using footprint for their entry confirmation - would love to hear your ideas & what you're looking for around entry price in footprint .

Hi,

this is exately how I trade. I have my levels, and focus on price action at those levels adn use the footprint combined with time & sales to confirm entry / momentum. I wait for price to slow down at a level, then I want to see imbalances coming through (i.e. if you are looking to go short you would want to see buy imbalances) but those imbalances do not cause much of a price reaction any more - means they are getting potentially absorbed by the other party. Then I wait for exhaustion, or the poke, or a potential trap to happen that would indicate price flip. Then I want see the potential trap getting confrimed by imbalances (short: I want to see buy imbalances pushing price to an LVN, you will notice a buy imbalance placed close to an LVN) as the imbalance goes neutral and time & sales shows a "big" number I consider to have momentum going for me and get in.

If you have any questions feel free to reach out.

Cheers,
Wernersabel

Wernersabel 

Hi, this is exately how I trade. I have my levels, and focus on price action at those levels adn use the footprint combined with time & sales to confirm entry / momentum. I wait for price to slow down at a level, then I want to see imbalances coming through (i.e. if you are looking to go short you would want to see buy imbalances) but those imbalances do not cause much of a price reaction any more - means they are getting potentially absorbed by the other party. Then I wait for exhaustion, or the poke, or a potential trap to happen that would indicate price flip. Then I want see the potential trap getting confrimed by imbalances (short: I want to see buy imbalances pushing price to an LVN, you will notice a buy imbalance placed close to an LVN) as the imbalance goes neutral and time & sales shows a "big" number I consider to have momentum going for me and get in. If you have any questions feel free to reach out. Cheers, Wernersabel

Quite helpful indeed !

Are you using Jigsaw for time & sales ?

Imbalances specially stacked imbalances are a bit rare to find . How many levels of imbalances you usually look for vertically & sequentially ?

If I don't find imbalances but just big buy orders getting absorbed by sell side (for a potential short trade) - is that a good confirmation too ?

kolbe 

Quite helpful indeed ! Are you using Jigsaw for time & sales ? Imbalances specially stacked imbalances are a bit rare to find . How many levels of imbalances you usually look for vertically & sequentially ? If I don't find imbalances but just big buy orders getting absorbed by sell side (for a potential short trade) - is that a good confirmation too ?

No I use sierrachart, its got everything in it. There may be a possibility on NT, if you open an ordinary T&S window, then set a filter for a specific size. Or watch the speed of orders coming through (in other threads they talk about using T&S, I just watch it at my levels and do not pay too much attention in between).

I see you are trading rather fast markets. If you use a 5min chart you should see plenty of stacked imbalances. If you watch CL i.e. and stacked sell imb. towards an end of a move could also mean stop runs are triggered. Those may be not "real" sells. And could mean buyers are setting up a sell trap. If price flipps around stacked imbalances at the end of a move and it gets confirmed you have a pretty good chance. But I have not been active in those markets for a while, so I do not know how it looks exactly currently.

I would say so. But additionally I would want to see sellers hitting the tape. Let price trade away a couple of ticks and when it comes back to check and sellers hold around the price level they were previoulsy active, I would join.

Hope it helps - Cheers,
Wernersabel

Wernersabel 

No I use sierrachart, its got everything in it. There may be a possibility on NT, if you open an ordinary T&S window, then set a filter for a specific size. Or watch the speed of orders coming through (in other threads they talk about using T&S, I just watch it at my levels and do not pay too much attention in between). I see you are trading rather fast markets. If you use a 5min chart you should see plenty of stacked imbalances. If you watch CL i.e. and stacked sell imb. towards an end of a move could also mean stop runs are triggered. Those may be not "real" sells. And could mean buyers are setting up a sell trap. If price flipps around stacked imbalances at the end of a move and it gets confirmed you have a pretty good chance. But I have not been active in those markets for a while, so I do not know how it looks exactly currently. I would say so. But additionally I would want to see sellers hitting the tape. Let price trade away a couple of ticks and when it comes back to check and sellers hold around the price level they were previoulsy active, I would join. Hope it helps - Cheers, Wernersabel

I'll watch out for those from now on . Does Sierra provide S&P 500 Advance Decline line alongside NYSE A/D Line ?

You're trading bonds - I think most players there usually scalp with order flow . Are you using volume profile to just scalp in there or for swing targets ?

kolbe 

I'll watch out for those from now on . Does Sierra provide S&P 500 Advance Decline line alongside NYSE A/D Line ? You're trading bonds - I think most players there usually scalp with order flow . Are you using volume profile to just scalp in there or for swing targets ?

I don't know if that indicator is included. But it has almost everything included so I am pretty sure its got that too, if not you can costomize your own stuff too. It is worth a look.

You can do both. I personally do not like sacalping that much. Mostly there is "a trade of the day" I like to be in the hunt for those. "Load up" on contracts and let it work out for me until the same setup I am looking for occurs to the other side. So I just use it to A) optimize entry B) keep cost of business as small as possible because you know when a trade does not work and get out C) get confirmation on a winning trade in order to add to my position

But everybody has his / her own preferences.

hope it helps.

kolbe 

I'll watch out for those from now on . Does Sierra provide S&P 500 Advance Decline line alongside NYSE A/D Line ? You're trading bonds - I think most players there usually scalp with order flow . Are you using volume profile to just scalp in there or for swing targets ?

Wernersabel 

I don't know if that indicator is included. But it has almost everything included so I am pretty sure its got that too, if not you can costomize your own stuff too. It is worth a look. You can do both. I personally do not like sacalping that much. Mostly there is "a trade of the day" I like to be in the hunt for those. "Load up" on contracts and let it work out for me until the same setup I am looking for occurs to the other side. So I just use it to A) optimize entry B) keep cost of business as small as possible because you know when a trade does not work and get out C) get confirmation on a winning trade in order to add to my position But everybody has his / her own preferences. hope it helps.

Advance/declines, whether S&P or NYSE, will depend on your data feed. You'd need to check with your feed provider or with your broker.

Also, regarding Sierra Chart: if your account is with NinjaTrader, they only support their own platform, NT. Now, the reality is that NinjaTrader brokerage is an Introducing Broker, so your account is with one of their FCM's, which I believe are Phillip Capital and Dorman Trading. It turns out that Sierra Chart can connect to either of these. How that is done, I don't know; I just found this on the Sierra Chart website so it is supposedly possible. You would need to look into how to do something like this. There are many tools available, and I'm sure you can find something within the NT universe also.

Bob.

bobwest 

Advance/declines, whether S&P or NYSE, will depend on your data feed. You'd need to check with your feed provider or with your broker. Also, regarding Sierra Chart: if your account is with NinjaTrader, they only support their own platform, NT. Now, the reality is that NinjaTrader brokerage is an Introducing Broker, so your account is with one of their FCM's, which I believe are Phillip Capital and Dorman Trading. It turns out that Sierra Chart can connect to either of these. How that is done, I don't know; I just found this on the Sierra Chart website so it is supposedly possible. You would need to look into how to do something like this. There are many tools available, and I'm sure you can find something within the NT universe also. Bob.

That is very useful info, Bob . Thank you so much .

I'll look into it .

Wernersabel 

I would say so. But additionally I would want to see sellers hitting the tape. Let price trade away a couple of ticks and when it comes back to check and sellers hold around the price level they were previoulsy active, I would join.

@Wernersabel,

That retest-and-hold sequence you describe is one of the more reliable confirmation patterns in order flow. The logic is sound: aggressive sellers print at a level, price rotates away, then returns -- and if passive supply still defends that zone on the second visit, it tells you the conviction behind that selling is real, not just a one-off liquidity event.

Your point about stacked sell imbalances at the end of a CL move potentially being stop runs is worth emphasizing. A lot of traders see 3-4 levels of diagonal sell imbalance and assume it means "sellers in control," but context matters. Stacked imbalances initiating a move carry different weight than those appearing after price has already traveled 30-40 ticks. End-of-move imbalances often reflect stops getting clipped, not fresh institutional selling.

One thing I'd add to your workflow: watch the delta response after those suspected stop-run imbalances. If you see stacked sell imbalances flush a low, but cumulative delta starts diverging (price making new lows while delta flattens or turns positive), that divergence is the footprint's way of confirming your sell-trap thesis. The aggressive selling exhausted itself while passive buyers quietly absorbed it underneath.

The combination you and @kolbe are discussing -- volume profile for where to look, footprint for what's happening at the level, then T&S for real-time confirmation -- is a solid layered approach. Each tool answers a different question, and stacking those answers reduces noise considerably.

-- Fi

"The footprint shows you aggression; absorption shows you conviction -- the edge lives in reading both."