#gold #futures #live #bookmap #GC#FOOTPOINT#ATAS
#GOLD #futures #live #bookmap #GC#FOOTPOINT#ATAS
How to Read a Footprint Chart
Observing Buy and Sell Volume: Determine the distribution of buying and selling power in the market by comparing buy and sell volume at each price level.
Analyzing Delta: Positive values indicate buyer dominance and negative values indicate seller dominance. Persistent positive or negative Delta values may indicate a continuation of the trend. Identify POC zones: The price level where the POC is located is usually a support or resistance level in the market, and prices may reverse or break out in this zone.
Watch for imbalance signals: Significant imbalances may signal strong upcoming market movements.
Footprint Chart Application Strategies
Identifying Support and Resistance: Determine potential support and resistance levels by looking at areas of concentrated volume.
Capturing Trend Reversals: When the Delta diverges from the price action, it may signal a trend reversal.
Optimizing Entry and Exit Timing: Combine imbalance signals and POC zones to select more favorable trade timing.
Delta (Net Turnover Difference per K-line)
Definition: Delta indicates the number of active buys (at ask price) minus the number of active sells (at bid price) in a given time period.
Interpretation:
Positive (+): Buyer dominance, may signal a price increase.
Negative values (-): seller dominated, may indicate a price decline.
Application: By observing changes in the Delta, traders can determine the buying and selling power of the market and recognize the continuation or reversal of a trend.
Session Delta (trading day cumulative net trading difference)
Definition: Session Delta is the cumulative value of Delta from the beginning of the trading day to the current moment, reflecting the buying and selling power throughout the trading day. Interpretation:
Continuously positive: buyers continue to dominate, the market may be in an uptrend.
Continuously negative: sellers continue to prevail, the market may be in a downtrend. Application: Session Delta helps traders to grasp market sentiment throughout the day and assists in the development of trading strategies.
Delta Change
Definition: Delta Change represents the difference between the Delta of the current K-line and the Delta of the previous K-line. – Interpretation:
Positive values: Strengthening of the buyers.
Interpretation: Positive values: Strengthening of the buyers. Negative values: Strengthening of the sellers.
Application: Delta Change helps to identify trends in buyer and seller power and capture market turning points. 4.
Volume
Definition: Volume represents the total volume of transactions in a given time period, including the number of all buy and sell orders. Interpretation:
High Volume: Active market, may be accompanied by large price fluctuations.
Low Volume: The market is quiet and price fluctuations may be small.
Application: Combined with Delta and Volume, traders can get a more complete picture of the market’s trading behavior and potential trends.
Comprehensive application advice
Trend Confirmation: An uptrend may be confirmed when both Delta and Volume increase and price breaks above a key level to the upside.
Divergence Recognition: If price continues to rise, but Delta and Volume fall, this may indicate a weakening or reversal of the trend.
Support Resistance Determination: Identifies key areas of support and resistance in the market by observing changes in the Session Delta.
How to read footprint base on ATAS
https://atas.net/volume-analysis/basics-of-volume-analysis/how-to-read-footprint/
Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
All the information in this video is for educational purposes only. It is in no way financial advise. Please understand the risk of loss when trading. Live Futures Trading, Live Day Trading Futures, Live Futures Day Trading, Live Stock Trading
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