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What you need to learn and understand is the concept of absorption. The green is not always green and red is not always red. There are many layers of data manifested by Foot Print chart and you need to understand what the market is telling you. You may have heavy selling or buying and the market will still continue moving the opposite direction. This called absorption and means you have a strong passive buyer or seller on the opposite side.
well said @Meklon ! The way the question was framed by @Grantx it sounded more like a question re: Cumulative Delta. You can read all about regular and hidden divergences of price vs cumulative delta chart. Similarly, you can read about exhaustion and absorption on a footprint chart. But without proper understanding of location and context, none of these will yield any result and if anything make it harder, by making the problem multi-dimensional. There is no CumDelta/Footprint "pattern" or "setup" one can learn that will make money.
Yes, very true. Context is everything. Order Flow (Foot Print) is an excellent tool and gives experienced trader a lot of information. But at the end of the day it's only a tool and many people introduced to Order Flow think that this is some kind of Holly Grail indicator that will flash green or red light when to buy or sell. There is more to it than just learning what the Delta does.
First of all the Foot print was never created to be red-light,green-light or when this line crosses over this line I buy or sell. What it gave was a window into the actual auction process! You could now see the liquidity and orders being matched. This was a major step up from the candle stick representation of the auction. I have been a user of the FP, and have discovered that even the FP does not give you the complete behind the scenes what is going on. I strongly erge you to spend some time at Jigsaw Trading or NO BS Trading. Look up on YouTube, Gary Nordon, and watch all of his videos. He is one the Big Boys, and up to this point what you have had for tools, has crippled you from having a real opportunity to be successful! Indicators are DEAD! And the professional traders do NOT use indicators! All of the 80-90% who fail in business were sold a bill of goods, by the unregulated trading-guru pretenders, selling their "proprietary" indicators, which if you follow their rules you will become wealthy! Total and Complete BS. I have given you the path to the water. -namaskaram
The trade you are describing, you entered short, didn't you? That's to say, you saw:
* Several bars with finished auctions at 3019
* This value 3019 acting as a "support" for a while
* Then you entered short because for some reason (I can't understand it yet) the price would go lower than 3019 for a couple of points
I looked at the DOM image you attached; it showed the most volume traded at 3019 at that moment.
last wednesday we had a good example. big passive buyer at 2,694. using a 10 range chart, that level got tested again shortly after.
so what we know is, there's a big buying order. what we don't know, how big or how much is left from that order. I do like that setup to go long. not saying that's going to be the low of the day, but normally it's good for a nice scalp. market went up to 2,708 and then the same setup on the short side. also good for a nice scalp.