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Help with NQU0 footprint charts during 3 stop-runs
Hi, I'll start by saying thanks for being such a helpful community.
I trade the Micro ES & NQ contracts in a trend-following capacity.
Lately I've been reading up on alot of order-flow posts and have become quite interested in this.
Right now I do not have acces to footprint software and before I commit time and $, I would kindly ask if someone could show me the footprint charts for three specifc periods on the NQU0 contract.
I thus want to see if, orderflow analysis could complement my entries and increase performance.
I have attached two charts where I marked the periods (green square) that I'm interested in.
The dates are July 24th 2020, August 7th 2020, August 10th 2020.
My hopothesis is, that there should be Stop-loss selling during this periode and that it would show up as "climax selling" and absorbtion on a footprint chart. So I would get a strong indication that the downmove has been exhausted.
On the footprint chart, I would like to se the number of contracts that traded bid or ask to see the absorbtion.
Thank you for helping out. Good luck and happy trading!
Can you help answer these questions from other members on NexusFi?
It's nearly impossible to make a screenshot of the 5m NQ Footprint chart because of the size (of the bars). I've made 3 videos you can pause and zoom into (Zoom to fill).
You can see the volume traded at the bid & ask. Below at the bottom is the Delta.
Although your hypothesis might be right I personally don't think this is useful in live trading because of the wide range bars (just impractical). Maybe with a 1m chart or Point&Figure? I don't know. I attached a 1m Footprint of August 10th. I think the ES might be better suited for using the Footprint. Anyway, hope this helps. Good luck.
That's much more informative...makes a lot more sense to look at.
I can see the lowest prices only had sellers initiating the trade, which to me seems like stop-loss...but the number of contracts traded is not that big...
The candle at the low closed positive with a negative delta. There were no orders filled at the offer but a couple were filled at the bid. There was a high volume node five ticks above the low with 56 contracts sold into the bid. Despite all this price didn't go lower. This means the selling was absorbed by the buyers (on the DOM the inside bid won't lower and keeps refreshing). Above the high volume node the number of nodes with contracts bought at the offer was rising (more green), buyers came in.
It could also be that the selling was exhausted. At these lower prices there were no more sellers to be found and the buyers took over (they bought cheap at the low in an area of support).
Now does this work all the time? Of course not. This means you cannot use this in and on itself (if you would ask me). But maybe it can be used as part of a comprehensive method. For example as an extra confirmation in an area of support and resistance (as you are doing).
I agree that you need context to use this information, which is what I'm trying to establish...I've previously been using Hourly bars before deciding on a trade, but perhaps this method could help me adjust my entries and SL which would improve performance.
Also thank you for your interpretation of the data :-)
