2 Ways To Trade An Iceberg Order [FOOTPRINT CHART]

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This footprint chart trading session is led by Brannigan and looks at how to trade against an iceberg order with examples in the WTI oil market on 30 January 2019.
The concept of an iceberg order is essentially a large chunky order providing liquidity and either passively selling when an aggressive buyer shows up, or passive buying when an aggressive seller shows up.
A summary of the key questions to ask are provided by Brannigan:
Why it happens?
- Same reason VWAP happens (best price averaging)
Where and when:
- Random
How to trade it:
- See what is behind the iceberg order, is usually another elephant
- Fast price action response
- Need confirmation above order
An iceberg order is not something that can be easily picked up on the price ladder, which is why the footprint chart proves to be such a valuable tool for intraday traders trading order flow.
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[@mithrandir491]

I've noticed there are times where pockets of new liquidity is being provided every time the price breaches the elephant so the price never truly reverses, its so hard to deal with situations like that.

[@airkidproductions2848]

thanks for shering such cool content! nice and enjoyable style by the way

[@borys444]

Bookmap displays iceberg orders as well.

[@erikeberhard8220]

Thanks for your content: constructive criticism: I differentiate between „Elefant-and iceberg-orders“ the major differentiation is the „visibility“ An Elefant stands on the ground and is visible for everybody, so the „interaction/risk/effect“ is easy to calculate/foresee; like a big marketmaker order in the orderbook VS The iceberg (the major part of it) ist below See Level, so not visible „for a traveler“ tho is the interaction/risk/effect and it’s hard to calculate/foresee ; like marketmaker orders invisible for the most participants of the market-> called: icebergs, or shadoworders, through shodowbrokers…other then overthecounter market they Effekt the assetprice directly.

[@henningbeyerable]

Thanks for the excellent explanation

[@yevihan]

great stuff, appreciate the work you guys put in and showcase here on youtube, thanks a lot! btw which software are using for this? TT? i cant find footprint option on stellar

[@patriciadurigao9476]

Nice

[@CraftGenky]

Why is there two elephants? Like two institutions buying in the same direction?

[@AxiaFutures]

Hello SnapShot. There is a big iceberg willing to absorb over 1000lots at the offer. It can be either one entity or multiple entities that have joined the initial iceberg. We would never know. People trying to lift the offer are most likely all kinds of traders, most likely not a big whale trying to lift big size. We would have to see price ladder to be absolutely sure. Hope this answer helps.

[@profitsgalore1624]

5:59

[@profitsgalore1624]

6:55

[@souvikghosh5087]

Give practical example.