YouTube2Text

How I Time Reversals Using Footprint Absorption (Most Accurate Entry Setup) — Transcript

by Christopher Creamer | Orderflow Trader · 5,308 words · 705 segments · language en · Watch on YouTube

Full transcript

  1. 0:00you're looking for a reversal but how do
  2. 0:02you know that that was the last low or
  3. 0:04how do you know that that was the last
  4. 0:05High it could be very difficult to spot
  5. 0:07when you're looking at normal
  6. 0:09candlesticks but it's easier to
  7. 0:10determine when that move might be
  8. 0:13finished when you're looking at
  9. 0:14footprint candlesticks what's up it's
  10. 0:16thrax we are back for our second video
  11. 0:19in our footprint chart trading Series
  12. 0:22where we go over orderflow and how it
  13. 0:23can help you with your trading in our
  14. 0:25last video we went over the basics of
  15. 0:27footprint what is a footprint chart what
  16. 0:29what does it look like how you can
  17. 0:31actually read it and what specifically a
  18. 0:34bid and ask ladder footprint candle
  19. 0:36looks like before I started using
  20. 0:38footprint shards I blew account after
  21. 0:40account I spent thousands of dollars on
  22. 0:42failed prop firm challenges and
  23. 0:44evaluations I was taking trades with no
  24. 0:46real confirmation I was getting faked
  25. 0:48out I was chasing every move and it was
  26. 0:51extremely frustrating thankfully I found
  27. 0:54footprint charts and it's helped my
  28. 0:55trading out tremendously and I just want
  29. 0:58to share what I know about footprint
  30. 0:59charts with you guys guys so in this
  31. 1:01video we're going to be talking about a
  32. 1:02simple strategy that I use specifically
  33. 1:04for identifying when to enter in on a
  34. 1:07reversal I'm essentially looking for
  35. 1:10signs that buyers or sellers are getting
  36. 1:12absorbed at Key areas this is where
  37. 1:14aggressive Traders are hitting the
  38. 1:15market but price just isn't moving and
  39. 1:18it's not pushing past that key area and
  40. 1:21when I can spot that with a footprint
  41. 1:23chart usually tells me that a reversal
  42. 1:25might be coming it's made a huge
  43. 1:27difference in my trading I'm not saying
  44. 1:29it's a perfect Strat strategy I use my
  45. 1:31other strategy along with footprint but
  46. 1:34it helps me with my entries on timing
  47. 1:36the right entry for a reversal and after
  48. 1:39using this model for identifying the
  49. 1:42reversal it's helped me avoid plenty of
  50. 1:44bad trades where in the past looking at
  51. 1:47normal candlesticks I probably would
  52. 1:48have taken that trade and gone stopped
  53. 1:50out so let's get into it all right so
  54. 1:53here we are back on our whiteboard and
  55. 1:56before we talk about the footprint setup
  56. 1:59for the reversal
  57. 2:00using absorption we need to talk about
  58. 2:02what is absorption so absorption is when
  59. 2:05large resting orders typically from
  60. 2:07institutional players or what some
  61. 2:09people call Smart money absorb
  62. 2:11aggressive Market orders without
  63. 2:13allowing price to move significantly so
  64. 2:16it's a signal of hidden liquidity
  65. 2:18potential reversal or continuations
  66. 2:21depending on context the core concept
  67. 2:23though of absorption is when aggressive
  68. 2:26buyers are hitting the ask and price
  69. 2:28doesn't move it means that that's sell
  70. 2:31side absorption and vice versa if
  71. 2:33aggressive sellers are hitting the bid
  72. 2:35but price doesn't move down that is buy
  73. 2:38side absorption and if you don't know
  74. 2:41what the bid in the ask is we went over
  75. 2:43that in our last video so it might help
  76. 2:45you understand this video a little bit
  77. 2:47more but that's the basic concept of
  78. 2:50absorption so what does that actually
  79. 2:52tell us when aggressive buyers are
  80. 2:54hitting the ask and price doesn't move
  81. 2:56up or aggressive sellers are hitting the
  82. 2:58bid and price doesn't move move down
  83. 3:00what is that saying essentially what
  84. 3:02that's saying is it's saying that
  85. 3:04someone is there absorbing all that
  86. 3:06pressure without letting price move and
  87. 3:09this can indicate liquidity being
  88. 3:10provided potentially to accumulate or
  89. 3:13distribute large positions it could be
  90. 3:15used to identify trap zones or reversals
  91. 3:18or potential breakout setups before the
  92. 3:20actual move so when it comes to our
  93. 3:22setup what exactly are we looking for
  94. 3:24well there's a few different things that
  95. 3:25we're looking for and I'll kind of go
  96. 3:27through them one by one so the first
  97. 3:30thing of course is we want to be paying
  98. 3:31attention to a key level if you're
  99. 3:33seeing absorption happen in the middle
  100. 3:34of nowhere it doesn't mean much right we
  101. 3:37need to find an area or a level where we
  102. 3:40are anticipating a potential rejection
  103. 3:43or that absorption to happen we're going
  104. 3:45to go ahead and we're going to monitor
  105. 3:46that price action and how it reacts to
  106. 3:49the level as it approaches or tests the
  107. 3:51level then we look for either aggressive
  108. 3:53buyers or sellers attempting to push
  109. 3:55through that level but failing and
  110. 3:57indicating a potential absorption and we
  111. 4:00do this by using something called the
  112. 4:02point of control or the PO and if you
  113. 4:04don't know what the point of control is
  114. 4:06or Po in this case we're using it for a
  115. 4:09candle so it's the area of the candle
  116. 4:11that had the most volume traded and we
  117. 4:13use it to identify where the highest
  118. 4:15volume occurred within that specific
  119. 4:17candle another thing we want to watch
  120. 4:19for is we want to watch for the Delta to
  121. 4:21flip to either go from red to green or
  122. 4:24green to Red depending on if we're
  123. 4:26looking for a long or a short then what
  124. 4:28we do is we enter the trade but before
  125. 4:30we enter the trade we wait for a
  126. 4:32pullback to the previous candle's point
  127. 4:34of control and we're going to place the
  128. 4:36stop right on the other side of that
  129. 4:38absorption Zone and by doing so it can
  130. 4:41end up giving us some pretty good risk
  131. 4:43reward setups so now I want to give you
  132. 4:45an example and show you what this
  133. 4:47actually looks like here we have an
  134. 4:50illustration that I created and we have
  135. 4:53a key level here we'll just call this a
  136. 4:56resistance and we have bullish candles
  137. 4:58approaching this area
  138. 5:00and then we are rejecting off of this
  139. 5:02area as you can see the Blue candles are
  140. 5:05the bullish ones the red candles are the
  141. 5:07bearish ones and this little black box
  142. 5:10that is inside the candles that is the
  143. 5:13point of control and something to
  144. 5:15mention which I'll touch on a little bit
  145. 5:16later is that the point of control is
  146. 5:18only on one side of the candle it's
  147. 5:21either on the bid or the ask and that
  148. 5:23holds a lot of significance that we're
  149. 5:25going to go over but you need to be
  150. 5:26paying attention to that so as price
  151. 5:28reaches this Lev level buyers are
  152. 5:31aggressively hitting the as the most
  153. 5:32amount of volume is here on the ask it
  154. 5:35means that buyers are aggressively
  155. 5:36Market buying and it's causing the POC
  156. 5:39to be on the ask as they reach the key
  157. 5:42area they are trying to break through
  158. 5:44you have all this volume up here and
  159. 5:46buyers are trying to break through this
  160. 5:48area but they're failing to do so if you
  161. 5:51look at the point of control inside the
  162. 5:53candles they are sitting in the wick
  163. 5:56right and that's important to note more
  164. 5:58often than not when you're looking at p
  165. 6:00and candles is typically within the body
  166. 6:03of the candle that is what you're going
  167. 6:04to see 80% of the time we are looking
  168. 6:07for when the point of control is above
  169. 6:10or below the body of the candle when the
  170. 6:13candle closes it's very important that
  171. 6:15you wait for the candle to close because
  172. 6:17these point of controls can change
  173. 6:20anytime the candle is forming so you
  174. 6:22need to wait for it to close so this
  175. 6:25tells us that most of the volume is
  176. 6:27happening at the highs but price is not
  177. 6:29breaking above the key level so what
  178. 6:31does this mean it means that there is a
  179. 6:33large seller or sellers here that are
  180. 6:36absorbing all of the buy pressure and
  181. 6:39they're taking the other side of those
  182. 6:40Market buy orders and it's a clear sign
  183. 6:42of buyer exhaustion and absorption and
  184. 6:45once the buyers actually run out of
  185. 6:47steam price is going to reverse and it's
  186. 6:49going to give us a high probability
  187. 6:51short setup and so the way you enter the
  188. 6:53trade is you you wait for this candle to
  189. 6:56close Okay we had a PO at the key area
  190. 6:59that closed on the ask above the candle
  191. 7:02body then we had another one price
  192. 7:05opened up here tried to push up it
  193. 7:07failed most aggressive were buyers
  194. 7:10here's the PC above the body of this
  195. 7:12candle chances are this is a red candle
  196. 7:15you would see a Delta flip here and that
  197. 7:17is where you would place your entry you
  198. 7:19don't want to place your entry right at
  199. 7:22the POC you want to place it maybe a
  200. 7:24point before the PC and then you'll wait
  201. 7:26for the next candle to come up retest
  202. 7:28that P see and then you will Target
  203. 7:31wherever you're trying to Target but
  204. 7:33you're going to be putting your stop
  205. 7:35right above this area right above the
  206. 7:37absorption Zone if price reaches and
  207. 7:41pushes past this Zone and pushes past
  208. 7:44the absorption Zone this trade is
  209. 7:46invalid it might work out but the
  210. 7:48probability of it actually working out
  211. 7:50if it breaks past this level now is not
  212. 7:52very likely when we're looking for a
  213. 7:54long setup we want the POC to be on the
  214. 7:58bid side and just as a reminder the left
  215. 8:01side is the bid the right side is the
  216. 8:03ask so if it's on the bid side this
  217. 8:06shows that aggressive sellers are
  218. 8:08hitting the bid they're trying to push
  219. 8:10price lower they're failing to push
  220. 8:12price lower and if price holds and it
  221. 8:14doesn't actually drop then what it's
  222. 8:16suggesting is that buyers are absorbing
  223. 8:18all of that sell pressure so sellers are
  224. 8:20getting trapped and it may later fuel
  225. 8:23the move up as they get stopped out and
  226. 8:25it's the complete opposite for a short
  227. 8:26setup you want the POC to be on the ask
  228. 8:29you don't want it to be on the bid when
  229. 8:31looking for a short and if it's on the
  230. 8:33ask then this is telling us that buyers
  231. 8:35are aggressively hitting the ask they're
  232. 8:37trying to push price higher and if price
  233. 8:39can't break above that level despite the
  234. 8:41heavy buying pressure then it probably
  235. 8:43means that large sellers are sitting
  236. 8:45right here absorbing all of that buying
  237. 8:47pressure and buyers are getting trapped
  238. 8:49and likely forced to exit or sell
  239. 8:51helping feel the downside move now you
  240. 8:54might be asking me thra what happens if
  241. 8:55the PC is on the opposite side well if
  242. 8:58you're looking for a short and the PC is
  243. 9:00not on the ask and it's actually on the
  244. 9:02bid it means that the buyers aren't the
  245. 9:04real aggressor and sellers are already
  246. 9:06in control or if you're looking at a
  247. 9:09long and instead of the POC being on the
  248. 9:11bid it is on the ask it means that
  249. 9:14buyers are the aggressor the PC is on
  250. 9:16the ask then buyers are the aggressor
  251. 9:18and it might not be it might not even be
  252. 9:20absorption so the bottom line is
  253. 9:22absorption is one side is aggressively
  254. 9:25attacking but it's failing so you need
  255. 9:27to see aggression and you need to see
  256. 9:29failure and that's what creates the Trap
  257. 9:32the PC location it's helping confirm who
  258. 9:35is actually trapped is it the buyers or
  259. 9:37is it the sellers and where the smart
  260. 9:39money might be actually stepping in so
  261. 9:42now that we have a better understanding
  262. 9:44of what we're looking for and we've
  263. 9:46looked at a example that I've drawn on a
  264. 9:48whiteboard let's go take a look at the
  265. 9:50charts and let's see some actual
  266. 9:52examples of where this works out and
  267. 9:54let's take a look at where it doesn't
  268. 9:56work out all right so here we are on the
  269. 9:57charts we are currently on the 5 minute
  270. 9:59time frame and I want to show you guys
  271. 10:02what this actually looks like when we
  272. 10:04are looking at it in real time right so
  273. 10:07right now we marked out a fair value Gap
  274. 10:09right here one of my favorite things to
  275. 10:11look for absorption in is not only the
  276. 10:14previous day highs or lows or you know
  277. 10:16other key areas but I look for it in
  278. 10:19Fair Value gaps now it might be a higher
  279. 10:21time frame fair value Gap it might be a
  280. 10:235 minute fair value Gap it really just
  281. 10:26depends on what I'm looking for and what
  282. 10:27time I'm trading for this example we've
  283. 10:29marked out a 5 minute fair value Gap
  284. 10:31here so this is going to be our area of
  285. 10:33Interest so we're going to be looking
  286. 10:34for price to come down into this fair
  287. 10:36value Gap and we want to see how price
  288. 10:38reacts if price shows us that absorption
  289. 10:41signal we are going to enter that trade
  290. 10:44as long as the criteria matches and then
  291. 10:47we'll Target a minimum of a one to two
  292. 10:50risk reward so as we enter into this
  293. 10:52fair value Gap we want to be looking for
  294. 10:54the PC to be in the wick below the close
  295. 10:57of the candle but we also want to make
  296. 11:00sure the POC is on the bid or the left
  297. 11:03side of the candle because we are
  298. 11:05looking for sellers to get absorbed
  299. 11:07meaning a buyer or buyers are sitting
  300. 11:10within this area and they are going to
  301. 11:11be absorbing all of the selling pressure
  302. 11:14and we identify that by the POC being on
  303. 11:17the correct side we also want to come
  304. 11:19down here and pay attention to the Delta
  305. 11:22we want to make sure that when we are
  306. 11:25looking for our trade we are looking for
  307. 11:28a Delta flip meaning that Delta goes
  308. 11:31from being in the negative and it goes
  309. 11:34to being in the positive and it has a
  310. 11:36big difference in change so right here
  311. 11:38what do we see we see the buyers are
  312. 11:40aggressively trying to push and sellers
  313. 11:42are absorbing the buying pressure you're
  314. 11:45going to you might ask me well why don't
  315. 11:47we take a trade for the shorts well it's
  316. 11:50because we are watching this as our key
  317. 11:52area we do not want to short into our
  318. 11:54area of interest that we are watching we
  319. 11:56are looking for the sellers to get
  320. 11:59absorbed by the buyers somewhere in this
  321. 12:02area now if price breaks below this fair
  322. 12:04value Gap and it inverses this fair
  323. 12:05value gap on the five minute then our
  324. 12:08trade setup is invalid and we're just
  325. 12:09not going to take it but we are looking
  326. 12:11for this to happen but we are looking
  327. 12:14for the candle to close Okay so the
  328. 12:16candle just closed this is a perfect
  329. 12:19example of what we are looking for Price
  330. 12:21comes down into this fair value Gap and
  331. 12:24it has a long Wick here small body and a
  332. 12:27long Wick sellers try to push down down
  333. 12:29or the most volume for the sellers was
  334. 12:31here below the close of the candle
  335. 12:33meaning that sellers try to push down
  336. 12:34aggressively buyers absorbed all of that
  337. 12:37selling pressure here in our key area
  338. 12:39and now we need to watch for the Delta
  339. 12:42now what we realistically want to see is
  340. 12:45you could after this candle closes you
  341. 12:48could just enter in a limit order let's
  342. 12:51just say right here at this level right
  343. 12:54above the pocc but we want to see the
  344. 12:56Delta change so it's a little bit bit
  345. 12:59less likely the probabilities are a
  346. 13:01little bit less likely if you don't see
  347. 13:03a Delta flip right now on this 5-minute
  348. 13:05candle that just closed the Delta isus
  349. 13:089915 if you wanted to be aggressive and
  350. 13:11take a position then yes you technically
  351. 13:13could you know enter in right here uh
  352. 13:17set your limit order wait for price to
  353. 13:18come down retest the POC of this candle
  354. 13:21and look for the reversal it would be a
  355. 13:23pretty aggressive entry but it can be
  356. 13:25done what we want to see is we want to
  357. 13:27see price create a green candle or in
  358. 13:30this case a blue candle have a flip in
  359. 13:32Delta see that confirmation that Delta
  360. 13:35is flipping buyers are now taking
  361. 13:36control and then we would place our
  362. 13:38limit order in this area so let's see
  363. 13:40what happens so now as we're looking at
  364. 13:42this candle we went from a red candle
  365. 13:45that had a negative Delta we witnessed
  366. 13:47the PC closed below the body of the
  367. 13:49candle we are in our key area the next
  368. 13:52candle closed green what we want to look
  369. 13:55at now is the Delta for this candle went
  370. 13:58from a - 915 to a positive 156 now
  371. 14:03that's not a massive uh change sometimes
  372. 14:06you'll see the changes be way higher but
  373. 14:08for Asia session um that is a pretty big
  374. 14:12change in Delta from one candle to
  375. 14:14another so what we're going to be
  376. 14:15looking for is we are going to be
  377. 14:18placing our limit order maybe one or two
  378. 14:20points above the POC of the candle so
  379. 14:24we'll place it right here and then we
  380. 14:26are going to be placing our stop right
  381. 14:29below this candle and we are going to be
  382. 14:31going for a one to two risk reward so
  383. 14:34let's see if price wants to tag us into
  384. 14:37this position so price is pushing up
  385. 14:39don't worry we don't want to chase this
  386. 14:42we want to wait for price to come down
  387. 14:44and retest this PO if price wants to
  388. 14:47move without us that is fine but we want
  389. 14:50to see it come back we need to be
  390. 14:51patient and this is something I struggle
  391. 14:53with but you know you guys might be
  392. 14:54better at it than I am so now we just
  393. 14:56got tagged into our trade we paused it
  394. 15:00price came down it retested the POC of
  395. 15:03the candle that we were watching the one
  396. 15:05that had the seller absorption on it so
  397. 15:08we want to look for a minimum of a one
  398. 15:11two risk reward now of course you can
  399. 15:13place your TP to take out recent highs
  400. 15:15or you can Target whatever you're trying
  401. 15:16to Target but the main point is is that
  402. 15:19you want to place your stop loss below
  403. 15:21the candle if price comes down and it
  404. 15:23breaks past this candle that we are
  405. 15:24watching for the entry this entire setup
  406. 15:27is invalid this is no longer going to be
  407. 15:29a valid setup so we are putting our stop
  408. 15:32loss right below the candle that we are
  409. 15:34watching and we are targeting a minimum
  410. 15:36of a one to two risk reward you can
  411. 15:38Target you know these highs let's say if
  412. 15:40you really wanted to or whatever else
  413. 15:42you're looking for another fair value
  414. 15:44Gap whatever but just to keep it simple
  415. 15:47we are only going to Target a one to two
  416. 15:49on all these examples so that you can
  417. 15:51get a better idea so let's watch price
  418. 15:54play out and let's see if this trade
  419. 15:55works
  420. 15:56out now something to note is this PC did
  421. 15:59close above the body of this candle but
  422. 16:01don't worry it was on the bid side and
  423. 16:03this is a blue candle we're not really
  424. 16:05too concerned with this if this was
  425. 16:08showing that once we entered this fair
  426. 16:10value Gap that there was buyer
  427. 16:12absorption meaning that the PC was on
  428. 16:14the right side or the ask side then this
  429. 16:16would probably tell us that we might
  430. 16:18need to move our stop to break even to
  431. 16:20minimize any risk but because it's on
  432. 16:22the wrong side we do not care about it
  433. 16:24and this right here is another sign of
  434. 16:26sellers getting absorbed by the buyers
  435. 16:28so this this is giving us more
  436. 16:29confirmation to hold this trade to our
  437. 16:31full TP here and if you really wanted to
  438. 16:35you could have added in right here price
  439. 16:37printed that seller absorption price
  440. 16:39came down retested the POC and now it's
  441. 16:42pushing back up so this is something we
  442. 16:44want to watch for right here we see that
  443. 16:47now buyers are getting absorbed a little
  444. 16:48bit in this fair value Gap that was on
  445. 16:51the way down so we want to make sure
  446. 16:54that we can minimize risk if you want to
  447. 16:57you can move your stop to break e even
  448. 16:59or you can move it right below this
  449. 17:01candle where the sellers were getting
  450. 17:03absorbed and then we can wait to see if
  451. 17:06price wants to hit our full
  452. 17:09TP all right so price hit our full TP
  453. 17:13and that was a successful one to two
  454. 17:15risk reward so just a quick recap on
  455. 17:18this example what did we look for we
  456. 17:20looked for our key area of interest that
  457. 17:22we were looking for in this case it was
  458. 17:24a 5minute fair value Gap we saw price
  459. 17:27come down on this 5-minute candle it
  460. 17:29created a long Wick down when this
  461. 17:31candle closed the POC was below the body
  462. 17:34of this candle so then once we had a
  463. 17:37green candle print and it closed we
  464. 17:40noticed that Delta changed from red to
  465. 17:42green or in this case red to blue then
  466. 17:44we end up placing our limit order for a
  467. 17:47buy position or a long right above the
  468. 17:50PC comes in it tags Us in and then it
  469. 17:53goes up we don't care about this in the
  470. 17:56sphere value Gap because this is
  471. 17:58something that that is on the wrong side
  472. 18:00the PC is on the wrong side in this case
  473. 18:02so we don't actually care about that
  474. 18:04price came down it printed the same
  475. 18:05thing again so this is giving us even
  476. 18:08more confirmation that sellers are
  477. 18:11getting absorbed and at this point once
  478. 18:14we saw price come up here and print that
  479. 18:16buyers were getting absorbed here in
  480. 18:18this fair value Gap then we can manage
  481. 18:21our risk a little bit you can move it to
  482. 18:22break even you can move up your stop
  483. 18:25loss to be right below this candle that
  484. 18:27printed the seller absor ion and then we
  485. 18:29just hold our trade so this is one
  486. 18:32example of it working out now obviously
  487. 18:34I cherry-picked this one just to show
  488. 18:36you what it looks like when it does work
  489. 18:38out there are times where you're going
  490. 18:41against the higher time frame analysis
  491. 18:43or there's obviously times where this
  492. 18:45doesn't work out okay but this is this
  493. 18:47is essentially what you're looking for
  494. 18:49all right so now we are looking at our
  495. 18:51second example this time we are going to
  496. 18:53be on our 15minute chart and for this
  497. 18:56example our area of Interest or area
  498. 18:59we're going to be watching for are these
  499. 19:01equal highs that was acting as a
  500. 19:03resistance and we eventually broke
  501. 19:05through and we are looking to see if
  502. 19:08price comes down and respects this and
  503. 19:10if we can find some absorption here on
  504. 19:12the 15minute so let's take a look at
  505. 19:13what happened right here we paused it
  506. 19:16this 15-minute candle closed price came
  507. 19:19down to where we marked our area of
  508. 19:21interest that we were watching which
  509. 19:22were these equal highs or resistance
  510. 19:25level that we ended up breaking through
  511. 19:27we're seeing if price now wants to
  512. 19:28respect this area price comes down
  513. 19:31sellers try and push past this area but
  514. 19:33they can't they fail there's a buyer
  515. 19:36here or buyers that are absorbing all of
  516. 19:38that selling pressure so now we have a
  517. 19:4115-minute candle that came down the PO
  518. 19:44when this candle closed is below the
  519. 19:47body of the candle and not only that but
  520. 19:50we went from a netive 2,000 contracts on
  521. 19:53mnq for the Delta to a positive 2,000
  522. 19:56contracts so in the previous example Le
  523. 19:59we were waiting for that Delta
  524. 20:00confirmation with the candle following
  525. 20:03the absorption candle but because in
  526. 20:05this example there was already a Delta
  527. 20:07flip here and price came down and in the
  528. 20:10absorption candle it is now caused the
  529. 20:12Delta flip we can go ahead and place our
  530. 20:15buy limit right here if price wants to
  531. 20:17come down and tag us into this trade we
  532. 20:19are going to place a stop loss right
  533. 20:21below the absorption candle and we can
  534. 20:24Target these highs up here or London
  535. 20:27highs which this is technically would be
  536. 20:29London Highs at 5:30 a.m. Pacific
  537. 20:31Standard Time price comes down and it
  538. 20:33breaks past this candle our trade is no
  539. 20:35longer valid we should not be in it
  540. 20:37anymore so we are going to see if price
  541. 20:40wants to tag Us in and we are going to
  542. 20:42see what happens
  543. 20:44here okay so we are tagged into this
  544. 20:47trade now it hit our limit order we are
  545. 20:49now in a long position we are going to
  546. 20:52set our stop loss right below the
  547. 20:54absorption candle and in this case we
  548. 20:57want to Target at least a one to two
  549. 20:59risk reward but because the one to two
  550. 21:02risk reward realistically would only be
  551. 21:05for about 25 points or so and it would
  552. 21:08be right here um we can just Target
  553. 21:11London highs let's say you thought we
  554. 21:12were going to take out London Highs at
  555. 21:15Market open we're going to see what
  556. 21:17happens now with price keep in mind if
  557. 21:21price in this candle ends up coming
  558. 21:23below and breaking past this bottom of
  559. 21:26our absorption candle this setup is no
  560. 21:29longer valid so there's no reason that
  561. 21:31we should be in it so it allows us to
  562. 21:32have a pretty tight stop loss and we can
  563. 21:34Target all the way up here so you know
  564. 21:36risking $28 to make $148 with one micro
  565. 21:40that's a pretty good risk reward if you
  566. 21:42ask me so let's see what
  567. 21:47happens and of course while this is
  568. 21:49playing out if you're looking on Lower
  569. 21:50time frames and you're also seeing
  570. 21:52absorption happening somewhere in this
  571. 21:5415-minute candle or this 15-minute
  572. 21:56candle you can manage your risk
  573. 21:57accordingly you can move your stop loss
  574. 22:00you can Trail your stop loss however you
  575. 22:02like to manage your risk whether it's
  576. 22:04scaling out contracts or adding some in
  577. 22:06taking some out you can do it however
  578. 22:08you want to do it I mean really this is
  579. 22:10just an entry model for absorption um
  580. 22:13that you can use with whatever strategy
  581. 22:15you're actually using okay well I was
  582. 22:18going to say we can move our stop to
  583. 22:19break even but there was no need to so
  584. 22:21we ended up hitting our full TP here for
  585. 22:24this all of the criteria here matched
  586. 22:26what we were looking for we had our key
  587. 22:28area that we were watching for in this
  588. 22:30case it was this resistance level that
  589. 22:32we ended up breaking through we were
  590. 22:34looking for price to find some type of
  591. 22:35support off of it price came down
  592. 22:38sellers try to push back below this
  593. 22:40level they failed to do so and our
  594. 22:42absorption candle printed right here and
  595. 22:45not only that but we had a Delta flip
  596. 22:47from negative - 2,000 contracts to
  597. 22:49positive 2,000 contracts so once this
  598. 22:5215minute candle opened up we thought we
  599. 22:54could place our buy limit here with a
  600. 22:57very tight stop loss right below it on
  601. 22:58the 15-minute time frame and targeting
  602. 23:01London highs it ended up working out all
  603. 23:04the criteria hit and this would have
  604. 23:06resulted in a successful trade I know
  605. 23:08that in the examples that I showed you
  606. 23:10obviously I picked them for a reason I
  607. 23:13knew they would work out but the point
  608. 23:15is is that this is an entry model that
  609. 23:17you can be using for your own trading
  610. 23:19it's not going to work out every single
  611. 23:21time there is still an element of
  612. 23:23discretion that needs to be used when
  613. 23:25you are using this type of Entry model
  614. 23:29but something to notice is that if you
  615. 23:31back test this strategy or this entry
  616. 23:34model you're going to find that it
  617. 23:36happens all the time throughout the day
  618. 23:39I mean we are now currently looking at
  619. 23:40the 3 minute time frame that 15-minute
  620. 23:43entry that we took with our key level
  621. 23:45right here there was also a three minute
  622. 23:47candle that printed that did the exact
  623. 23:49same thing you could have done the exact
  624. 23:51same model or entry on the 3 minute you
  625. 23:53know there's up here we are noticing
  626. 23:57absorption price comes down up here
  627. 23:59we're noticing absorption of the buyers
  628. 24:01price comes down down here there's
  629. 24:03absorption of the sellers price comes
  630. 24:04back up and it happens throughout the
  631. 24:07day but it's important that you only use
  632. 24:10this at Key areas that you use for your
  633. 24:12own strategy otherwise the probability
  634. 24:15of it actually working out is going to
  635. 24:17totally plummet and you want to make
  636. 24:19sure that you confirm the absorption by
  637. 24:23recognizing a Delta flip and the reason
  638. 24:25why is because with a Delta flip you're
  639. 24:28essentially watching the momentum change
  640. 24:31hands you're watching the control be
  641. 24:33taken away from the sellers and moving
  642. 24:35over into the buyers and now the buyers
  643. 24:37have control or vice versa and so you
  644. 24:41can ignore the Delta flip and you can
  645. 24:44enter off of just an absorption candle
  646. 24:46but it's going to be less probability
  647. 24:49that it's actually going to end up
  648. 24:50working out in your favor but
  649. 24:52nonetheless this is one of my favorite
  650. 24:54setups when it comes to actually trading
  651. 24:56with my footprint charts I use this with
  652. 24:59my actual trading strategy though so I'm
  653. 25:01not just entering trades only because
  654. 25:04I'm seeing absorption happen or I'm just
  655. 25:07only watching the footprint chart I'm
  656. 25:10watching my trading view I'm watching
  657. 25:11for my normal strategy I am watching for
  658. 25:13my key levels that I marked out
  659. 25:15pre-market before we even started
  660. 25:17trading but I'm watching for When Buyers
  661. 25:20get absorbed or sellers get absorbed at
  662. 25:22those key areas you know who's getting
  663. 25:24trapped and then if it is at an area
  664. 25:26that I was watching for to begin with
  665. 25:29then yes I am going to take the trade
  666. 25:31and it doesn't work out every single
  667. 25:33time but what I found out is that it
  668. 25:35works out enough for me to like to use
  669. 25:38this entry model so go ahead and back
  670. 25:40test it if one thing also I wanted to
  671. 25:43mention is with this platform a toss I
  672. 25:46don't think I've seen any other platform
  673. 25:48that has uh replay capabilities like
  674. 25:51this I mean a toss allows you to
  675. 25:55actually Replay in real time you can go
  676. 25:58back you can literally watch it at one:
  677. 26:02one speed you can watch the orders come
  678. 26:04in the market you can also use a toss to
  679. 26:09look at the Dom and see where orders
  680. 26:11were resting they allow that option too
  681. 26:14in their replay and it's by far the best
  682. 26:16replay that I've ever used it's way
  683. 26:18better than the trading view replay and
  684. 26:21just the replay alone is very valuable
  685. 26:25when it comes to wanting to back test I
  686. 26:27mean you don't even have to use this to
  687. 26:29back test footprint if you wanted to use
  688. 26:31your normal strategy and just back test
  689. 26:33it real time and not have choppy candle
  690. 26:36price action like how trading view has
  691. 26:39you can literally just use a toss for
  692. 26:40that and if you're interested in it they
  693. 26:42do have a 14-day free trial you can
  694. 26:45claim that by clicking the link below in
  695. 26:47my description and you can go ahead and
  696. 26:49use it and let me know what you guys
  697. 26:50think about a toss let me know what you
  698. 26:52think about the absorption strategy
  699. 26:55whether or not you might put it into
  700. 26:56your trading strategy or not
  701. 26:59and then in the next video we'll be
  702. 27:00talking about another strategy that I
  703. 27:02like to use when it comes to reversals
  704. 27:04by looking at footprint charts so until
  705. 27:07then I'll catch you guys next time peace

About this transcript

This page contains the full transcript of How I Time Reversals Using Footprint Absorption (Most Accurate Entry Setup) by Christopher Creamer | Orderflow Trader, generated from the public captions YouTube serves with the video. The transcript has 5,308 words across 705 segments, with the original timestamps preserved so you can click any line to jump to that moment in the embedded player.

What you can do with it

Use the transcript to take notes, quote the speaker, build a study guide, generate a summary with ChatGPT or Claude via the YouTube Summary tool, or export it as a timed subtitle file with YouTube to SRT. You can also re-open it in the transcriber to translate the transcript into 100+ languages.

Free YouTube transcript tool

YouTube2Text is a free YouTube transcript generator — no signup, no daily limit. Paste any YouTube link and get the full transcript instantly, with timestamps, click-to-jump, translation to 100+ languages, AI prompts for ChatGPT, Claude, and Gemini, and exports to TXT, SRT, VTT, or Markdown.