How To Identify Absorption - Footprint Chart Trading | Axia Futures

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This footprint chart trading session looks at a crude oil trade idea tweeted by Brannigan on 26 November 2018. To illustrate the thinking behind the trade we look at the signs of identifying absorption on the footprint chart and the context in which it appeared.
An important takeaway from stream is the difference between patterns and strategies, is similar to the difference between a scenario and a plan of execution. Strategy then is how you plan to react and execute at certain trigger points in the context of a trading scenario.
The first step is to learn how to observe patterns and the second step is knowing how to execute effectively. This particular stream shows the context of the WTI Oil market displaying a pattern of bidding up after exceeding the daily average range with a move to the downside.
The 60 minute footprint chart then helps to identify a pattern of absorption with prices being held steady while showing negative delta. In essence, this reveals the presence of buyers holding the market and providing liquidity while selling pressure is absorbed.
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[@laneyljk]

Thanks I was confused on that subject 🎉

[@AxiaFutures]

Thanks for watching!

[@dsc1970]

The 'Monday' was good. Even without footprint chart experience, I was able to see how delta could be used to enter reversals. It was a 60-min chart in this video. Do you often use a higher timeframe footprint chart in conjunction with trading a lower timeframe chart (say 5 min)?

[@rubster1975]

What indicator is that blue one on your candle chart?

[@walterescalante6141]

atr (average true range)

[@ssstecz]

I see that you always use footprint charts in scale of time. 5minutes, 15 minutes, 60 minutes... What about in the E-mini use a non-temporal scale, I mean 1000 ticks per rotation or 1000 contracts traded per rotation, for exemple? It would not be more precise? I think it can be , if you consider that within the timeframe were you set the rotation many things can happen, like a more agressive action of one player followed by a quick response of another player. You think is possible to figure out better about such stiuation in a non-temporal scale than we can on a fixed timeframe?