Thread by @C2Mxyz

Because I could not trade yesterday, I made a small thread with examples of how I would'v traded it based on the BidxAsk & Volume cluster types.

Purely based on a naked chart I would have stalked the prior high as I know a LOT of retards will try to breakout long this

/cont

/2 Once we have our level we start actively stalking for our short trigger, now this can come in two ways:

I. Exhaustion
II. Absorption

Looking at orderflow we can determine if there are imbalances within the prints. Are buyers getting cocky? lack of follow through?

/3 The most common cluster type for a footprint chart is the BidxAsk Footprint. It breaks down volume into separate buy and sell variables, allowing you to see a proper breakdown of volume and how it is traded.

4/ The right side of the profile indicates aggressive buyers lifting the offer. Depending on the level of aggression, the color will have a shade; the darker the shade, the more aggressive it is. In this example the candle close BELOW the shaded cluster is your short trigger

5/ Total Volume is a cluster type that lets you see all the volume traded at each price point. Depending on the level of aggression, the color (blue) will have a shade:

- Dark blue represents a greater total volume
- Light blue represents a lower total volume

6/ As shown in the visual below there was a significant increase in volume on the second sweep of the highs without much follow through. This is bearish as it indicates buy pressure is being absorbed by a passive seller. Once it trades below the high VOL cluster it's a short.

7/ I know majority things orderflow in general is overwhelming while in fact if you know what you're looking for it can really boost your confidence while trading. Enjoy your weekend everyone! /fin