5 Principles To Identify Auction And Absorption [FOOTPRINT CHART]

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This footprint trading session with Brannigan looks at two questions asked by viewers: 1) How do you identify auction and absorption on the Footprint? and 2) How do you execute as a trade strategy?
Brannigan explains that while there are clear principles for identifying absorption and auctioning activity, every trader's execution strategy will be unique to them, but shares his personal approach using the footprint chart.
The 5 principles to identify absorption and auction are:
1. Passive vs aggressive (the switch in price response)
2. Responsive vs initiative price action
3. Volume
4. Delta
5. Price response
Brannigan uses an example from the S&P 500 futures market on the 28th January 2019, drilling down from the daily chart to the 60 minutes and then the 5 minute time-frame. Keep in mind that real absorption and initiative are large time-frame plays, therefore daily volume needs to above average, it is or more likely to be a consolidation.
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[@benmaxinm]

Very helpful as always guys! Thanks for clarification of 1) Responsive vs 2) Initiative approach.

[@meow-hx2nw]

Pure gold🔥

[@Peter-jg7if]

Great video, thanks!

[@arslan9232]

This channel doesn't have less views, just made for professionals....

[@AxiaFutures]

We agree 100% !

[@eliyasthomas]

Thanks so much

[@iq-nj4xg]

Hi, Are any of the Axia Futures methods applicable to equities trading? All your videos seem to be focused only towards futures trading.

[@AxiaFutures]

Yes, the same principles relating to auctioning activity apply to any market with buyers and sellers

[@marsery]

This is an essential video. I did not quite grasp why the delta needs to be highly + at the high in a "range" so to speak ..when it turns..are we not supposed to see selling coming ? plus it would help if we could see the name of the line: delta, negative/ positive delta and ..I need to watch it many times ..to see how you'd enter.. I have difficulty with the footprint all by itself to find trade location .

[@Metaskriptz]

High delta at highs with no upward movement = effort no result = absorption = bigger time frame player is active. Likewise vice versa. All the same thing. Once you see a good delta in the opposite direction, it’s a good time to initiate trading I.e scaling in or whatever entry method you choose. So if market is going up and there’s a surge in delta or buy volume, but the price didn’t go up, someone is eating those orders. This would look possibly like a hidden bearish divergence on delta. Once it’s exhausted and selling comes in and possible change in structure, then it’s a good time to start initiating the sell. This Strategy is a low risk high reward strategy

[@marsery]

@@Metaskriptz thanks a lot, I understand now what you mean...it's similar to kickoff principles : effort vs results ..surge in volume at a high and no higher high and often a bar closing on its low/ pin bar etc....

[@mojango5696]

The limit orders set in opposite direction in footprint. Sell limit on ask side and buy limit on bid side.

[@traderzzz123]

footprint can be bit confusing as both sides technically have "buyers" and "sellers" with different roles. It's all about the context.

[@skeeter4028]

Just one question, which way is the delta when the market approaches the high? I thought it was strong delta, because they always say the market takes the escalator up, and the elevator down.

[@josefmalar7837]

when the market is reaching resistance (better to be there some kind of resistance already), yiou want to see, big positive delta with not big green candle, and ideally bigger shaddow from high.

[@trading2ez]

Not that easy. The footprint chart usually indicates market orders. It is important to combine this with limit-orders or heatmaps as big players tend to protect their positions with them.

[@traderzzz123]

for me personally, when the market is reaching some sort of high/previous resistance, i look for heavy delta (aggressive buyers lifting the offers) and whether is is being absorbed or not (liquidity provided by passive sellers or not), and react from there on. Some confirmation i look for afterwards is if aggressive sellers come into play (stacked imbalances), therefore trapping the poor buyers.

[@derekreed6798]

Epiphany 🙂