hard · Order Flow Analysis footprint-delta
An ES footprint bar shows the upper 5 levels have total volumes between $200 and 300 contracts. The bottom 3 levels at the session low show ask volumes of $850 to 1,100 contracts with diagonal ratios exceeding 5:1.
How should a professional differentiate between signal and noise here?
- The top levels represent 'Unfinished Business' that must be revisited before the market can drop.
- The bottom volume is 'Passive Absorption' by sellers, suggesting the market will break lower.
- The top is retail noise/HFT market making; the bottom is institutional initiative buying.
- The entire bar is noise because the volume is inconsistent across price levels.
Sign up free to see the explanation and track your rank →
More Order Flow Analysis footprint-delta practice
- An E-mini S&P 500 footprint bar shows a price level at $4510… — Using a 300% threshold, wh
- What is the primary advantage of using the range-based chart in this scenario?
- A trader is looking for a short entry. They see a red candle… — What does this 'Wick-Body'
- If both bars have a volume of 5000 contracts, what does the 4-tick bar suggest?
- Why is it recommended to ignore the Δ of a bar that is pulling back to a long entry zone?
- In the Euro FX ($6E), you see 944 contracts bought aggressiv… — What does this suggest abo
- A trader sees the price of Crude Oil (CL) drop to $72.50, wh… — How should this be interpr
- What does a 'Narrow' VWAP standard deviation band width suggest about the current market e