Instead of guessing if a resistance level will hold, you see the actual selling pressure stepping in.
Once, there was a trader named Elias who spent his days staring at "the colorful chaos" of standard price charts. He felt like he was trying to predict the weather by looking at old photos of clouds—until he discovered the Order Flow Instead of looking at where the price , Elias started looking at the Auction Process
Standard Candlestick Footprint / Imbalance Chart ┌───┐ ┌───────────┐ │ │ │ 25 │ 120 │ <-- Selling vs Buying Vol │ │ ───> │ 410 │ 85 │ │ │ │ 90 │ 310 │ <-- Buying Imbalance └───┘ └───────────┘ 1. The Footprint Chart (Bid/Ask Volume Profile) Order Flow Trading For Fun And Profit Pdf
Order Flow Trading For Fun And Profit: The Ultimate Guide to Reading the Market's Footprint
Price cannot move higher unless passive limit orders are removed or consumed. Absorption occurs when aggressive buyers market-buy heavily into a major resistance level, but the price refuses to move up because a passive seller is absorbing all the volume. Instead of guessing if a resistance level will
Note: Institutional traders frequently use "spoofing" or iceberg orders to hide their true intentions in the DOM, which is why we must pair it with executed volume. 2. The Footprint Chart (Bid/Ask Volume Profile)
When aggressive buying sweeps through passive offers without a reaction in price, it indicates a "wall" of liquidity is absorbing the pressure. This concept, known as , suggests that despite high volume, the price will not move, often preceding a violent reversal in the opposite direction. The Footprint Chart (Bid/Ask Volume Profile) When aggressive
If you want to transition from lagging indicators to real-time market mechanics, I can provide more specific details. Let me know if you would like me to outline a , detail how to configure footprint chart settings , or explain how to read cumulative delta divergences .