How I Time Reversals Using Footprint Absorption (Most Accurate Entry Setup) — Transcript
Full transcript
- 0:00you're looking for a reversal but how do
- 0:02you know that that was the last low or
- 0:04how do you know that that was the last
- 0:05High it could be very difficult to spot
- 0:07when you're looking at normal
- 0:09candlesticks but it's easier to
- 0:10determine when that move might be
- 0:13finished when you're looking at
- 0:14footprint candlesticks what's up it's
- 0:16thrax we are back for our second video
- 0:19in our footprint chart trading Series
- 0:22where we go over orderflow and how it
- 0:23can help you with your trading in our
- 0:25last video we went over the basics of
- 0:27footprint what is a footprint chart what
- 0:29what does it look like how you can
- 0:31actually read it and what specifically a
- 0:34bid and ask ladder footprint candle
- 0:36looks like before I started using
- 0:38footprint shards I blew account after
- 0:40account I spent thousands of dollars on
- 0:42failed prop firm challenges and
- 0:44evaluations I was taking trades with no
- 0:46real confirmation I was getting faked
- 0:48out I was chasing every move and it was
- 0:51extremely frustrating thankfully I found
- 0:54footprint charts and it's helped my
- 0:55trading out tremendously and I just want
- 0:58to share what I know about footprint
- 0:59charts with you guys guys so in this
- 1:01video we're going to be talking about a
- 1:02simple strategy that I use specifically
- 1:04for identifying when to enter in on a
- 1:07reversal I'm essentially looking for
- 1:10signs that buyers or sellers are getting
- 1:12absorbed at Key areas this is where
- 1:14aggressive Traders are hitting the
- 1:15market but price just isn't moving and
- 1:18it's not pushing past that key area and
- 1:21when I can spot that with a footprint
- 1:23chart usually tells me that a reversal
- 1:25might be coming it's made a huge
- 1:27difference in my trading I'm not saying
- 1:29it's a perfect Strat strategy I use my
- 1:31other strategy along with footprint but
- 1:34it helps me with my entries on timing
- 1:36the right entry for a reversal and after
- 1:39using this model for identifying the
- 1:42reversal it's helped me avoid plenty of
- 1:44bad trades where in the past looking at
- 1:47normal candlesticks I probably would
- 1:48have taken that trade and gone stopped
- 1:50out so let's get into it all right so
- 1:53here we are back on our whiteboard and
- 1:56before we talk about the footprint setup
- 1:59for the reversal
- 2:00using absorption we need to talk about
- 2:02what is absorption so absorption is when
- 2:05large resting orders typically from
- 2:07institutional players or what some
- 2:09people call Smart money absorb
- 2:11aggressive Market orders without
- 2:13allowing price to move significantly so
- 2:16it's a signal of hidden liquidity
- 2:18potential reversal or continuations
- 2:21depending on context the core concept
- 2:23though of absorption is when aggressive
- 2:26buyers are hitting the ask and price
- 2:28doesn't move it means that that's sell
- 2:31side absorption and vice versa if
- 2:33aggressive sellers are hitting the bid
- 2:35but price doesn't move down that is buy
- 2:38side absorption and if you don't know
- 2:41what the bid in the ask is we went over
- 2:43that in our last video so it might help
- 2:45you understand this video a little bit
- 2:47more but that's the basic concept of
- 2:50absorption so what does that actually
- 2:52tell us when aggressive buyers are
- 2:54hitting the ask and price doesn't move
- 2:56up or aggressive sellers are hitting the
- 2:58bid and price doesn't move move down
- 3:00what is that saying essentially what
- 3:02that's saying is it's saying that
- 3:04someone is there absorbing all that
- 3:06pressure without letting price move and
- 3:09this can indicate liquidity being
- 3:10provided potentially to accumulate or
- 3:13distribute large positions it could be
- 3:15used to identify trap zones or reversals
- 3:18or potential breakout setups before the
- 3:20actual move so when it comes to our
- 3:22setup what exactly are we looking for
- 3:24well there's a few different things that
- 3:25we're looking for and I'll kind of go
- 3:27through them one by one so the first
- 3:30thing of course is we want to be paying
- 3:31attention to a key level if you're
- 3:33seeing absorption happen in the middle
- 3:34of nowhere it doesn't mean much right we
- 3:37need to find an area or a level where we
- 3:40are anticipating a potential rejection
- 3:43or that absorption to happen we're going
- 3:45to go ahead and we're going to monitor
- 3:46that price action and how it reacts to
- 3:49the level as it approaches or tests the
- 3:51level then we look for either aggressive
- 3:53buyers or sellers attempting to push
- 3:55through that level but failing and
- 3:57indicating a potential absorption and we
- 4:00do this by using something called the
- 4:02point of control or the PO and if you
- 4:04don't know what the point of control is
- 4:06or Po in this case we're using it for a
- 4:09candle so it's the area of the candle
- 4:11that had the most volume traded and we
- 4:13use it to identify where the highest
- 4:15volume occurred within that specific
- 4:17candle another thing we want to watch
- 4:19for is we want to watch for the Delta to
- 4:21flip to either go from red to green or
- 4:24green to Red depending on if we're
- 4:26looking for a long or a short then what
- 4:28we do is we enter the trade but before
- 4:30we enter the trade we wait for a
- 4:32pullback to the previous candle's point
- 4:34of control and we're going to place the
- 4:36stop right on the other side of that
- 4:38absorption Zone and by doing so it can
- 4:41end up giving us some pretty good risk
- 4:43reward setups so now I want to give you
- 4:45an example and show you what this
- 4:47actually looks like here we have an
- 4:50illustration that I created and we have
- 4:53a key level here we'll just call this a
- 4:56resistance and we have bullish candles
- 4:58approaching this area
- 5:00and then we are rejecting off of this
- 5:02area as you can see the Blue candles are
- 5:05the bullish ones the red candles are the
- 5:07bearish ones and this little black box
- 5:10that is inside the candles that is the
- 5:13point of control and something to
- 5:15mention which I'll touch on a little bit
- 5:16later is that the point of control is
- 5:18only on one side of the candle it's
- 5:21either on the bid or the ask and that
- 5:23holds a lot of significance that we're
- 5:25going to go over but you need to be
- 5:26paying attention to that so as price
- 5:28reaches this Lev level buyers are
- 5:31aggressively hitting the as the most
- 5:32amount of volume is here on the ask it
- 5:35means that buyers are aggressively
- 5:36Market buying and it's causing the POC
- 5:39to be on the ask as they reach the key
- 5:42area they are trying to break through
- 5:44you have all this volume up here and
- 5:46buyers are trying to break through this
- 5:48area but they're failing to do so if you
- 5:51look at the point of control inside the
- 5:53candles they are sitting in the wick
- 5:56right and that's important to note more
- 5:58often than not when you're looking at p
- 6:00and candles is typically within the body
- 6:03of the candle that is what you're going
- 6:04to see 80% of the time we are looking
- 6:07for when the point of control is above
- 6:10or below the body of the candle when the
- 6:13candle closes it's very important that
- 6:15you wait for the candle to close because
- 6:17these point of controls can change
- 6:20anytime the candle is forming so you
- 6:22need to wait for it to close so this
- 6:25tells us that most of the volume is
- 6:27happening at the highs but price is not
- 6:29breaking above the key level so what
- 6:31does this mean it means that there is a
- 6:33large seller or sellers here that are
- 6:36absorbing all of the buy pressure and
- 6:39they're taking the other side of those
- 6:40Market buy orders and it's a clear sign
- 6:42of buyer exhaustion and absorption and
- 6:45once the buyers actually run out of
- 6:47steam price is going to reverse and it's
- 6:49going to give us a high probability
- 6:51short setup and so the way you enter the
- 6:53trade is you you wait for this candle to
- 6:56close Okay we had a PO at the key area
- 6:59that closed on the ask above the candle
- 7:02body then we had another one price
- 7:05opened up here tried to push up it
- 7:07failed most aggressive were buyers
- 7:10here's the PC above the body of this
- 7:12candle chances are this is a red candle
- 7:15you would see a Delta flip here and that
- 7:17is where you would place your entry you
- 7:19don't want to place your entry right at
- 7:22the POC you want to place it maybe a
- 7:24point before the PC and then you'll wait
- 7:26for the next candle to come up retest
- 7:28that P see and then you will Target
- 7:31wherever you're trying to Target but
- 7:33you're going to be putting your stop
- 7:35right above this area right above the
- 7:37absorption Zone if price reaches and
- 7:41pushes past this Zone and pushes past
- 7:44the absorption Zone this trade is
- 7:46invalid it might work out but the
- 7:48probability of it actually working out
- 7:50if it breaks past this level now is not
- 7:52very likely when we're looking for a
- 7:54long setup we want the POC to be on the
- 7:58bid side and just as a reminder the left
- 8:01side is the bid the right side is the
- 8:03ask so if it's on the bid side this
- 8:06shows that aggressive sellers are
- 8:08hitting the bid they're trying to push
- 8:10price lower they're failing to push
- 8:12price lower and if price holds and it
- 8:14doesn't actually drop then what it's
- 8:16suggesting is that buyers are absorbing
- 8:18all of that sell pressure so sellers are
- 8:20getting trapped and it may later fuel
- 8:23the move up as they get stopped out and
- 8:25it's the complete opposite for a short
- 8:26setup you want the POC to be on the ask
- 8:29you don't want it to be on the bid when
- 8:31looking for a short and if it's on the
- 8:33ask then this is telling us that buyers
- 8:35are aggressively hitting the ask they're
- 8:37trying to push price higher and if price
- 8:39can't break above that level despite the
- 8:41heavy buying pressure then it probably
- 8:43means that large sellers are sitting
- 8:45right here absorbing all of that buying
- 8:47pressure and buyers are getting trapped
- 8:49and likely forced to exit or sell
- 8:51helping feel the downside move now you
- 8:54might be asking me thra what happens if
- 8:55the PC is on the opposite side well if
- 8:58you're looking for a short and the PC is
- 9:00not on the ask and it's actually on the
- 9:02bid it means that the buyers aren't the
- 9:04real aggressor and sellers are already
- 9:06in control or if you're looking at a
- 9:09long and instead of the POC being on the
- 9:11bid it is on the ask it means that
- 9:14buyers are the aggressor the PC is on
- 9:16the ask then buyers are the aggressor
- 9:18and it might not be it might not even be
- 9:20absorption so the bottom line is
- 9:22absorption is one side is aggressively
- 9:25attacking but it's failing so you need
- 9:27to see aggression and you need to see
- 9:29failure and that's what creates the Trap
- 9:32the PC location it's helping confirm who
- 9:35is actually trapped is it the buyers or
- 9:37is it the sellers and where the smart
- 9:39money might be actually stepping in so
- 9:42now that we have a better understanding
- 9:44of what we're looking for and we've
- 9:46looked at a example that I've drawn on a
- 9:48whiteboard let's go take a look at the
- 9:50charts and let's see some actual
- 9:52examples of where this works out and
- 9:54let's take a look at where it doesn't
- 9:56work out all right so here we are on the
- 9:57charts we are currently on the 5 minute
- 9:59time frame and I want to show you guys
- 10:02what this actually looks like when we
- 10:04are looking at it in real time right so
- 10:07right now we marked out a fair value Gap
- 10:09right here one of my favorite things to
- 10:11look for absorption in is not only the
- 10:14previous day highs or lows or you know
- 10:16other key areas but I look for it in
- 10:19Fair Value gaps now it might be a higher
- 10:21time frame fair value Gap it might be a
- 10:235 minute fair value Gap it really just
- 10:26depends on what I'm looking for and what
- 10:27time I'm trading for this example we've
- 10:29marked out a 5 minute fair value Gap
- 10:31here so this is going to be our area of
- 10:33Interest so we're going to be looking
- 10:34for price to come down into this fair
- 10:36value Gap and we want to see how price
- 10:38reacts if price shows us that absorption
- 10:41signal we are going to enter that trade
- 10:44as long as the criteria matches and then
- 10:47we'll Target a minimum of a one to two
- 10:50risk reward so as we enter into this
- 10:52fair value Gap we want to be looking for
- 10:54the PC to be in the wick below the close
- 10:57of the candle but we also want to make
- 11:00sure the POC is on the bid or the left
- 11:03side of the candle because we are
- 11:05looking for sellers to get absorbed
- 11:07meaning a buyer or buyers are sitting
- 11:10within this area and they are going to
- 11:11be absorbing all of the selling pressure
- 11:14and we identify that by the POC being on
- 11:17the correct side we also want to come
- 11:19down here and pay attention to the Delta
- 11:22we want to make sure that when we are
- 11:25looking for our trade we are looking for
- 11:28a Delta flip meaning that Delta goes
- 11:31from being in the negative and it goes
- 11:34to being in the positive and it has a
- 11:36big difference in change so right here
- 11:38what do we see we see the buyers are
- 11:40aggressively trying to push and sellers
- 11:42are absorbing the buying pressure you're
- 11:45going to you might ask me well why don't
- 11:47we take a trade for the shorts well it's
- 11:50because we are watching this as our key
- 11:52area we do not want to short into our
- 11:54area of interest that we are watching we
- 11:56are looking for the sellers to get
- 11:59absorbed by the buyers somewhere in this
- 12:02area now if price breaks below this fair
- 12:04value Gap and it inverses this fair
- 12:05value gap on the five minute then our
- 12:08trade setup is invalid and we're just
- 12:09not going to take it but we are looking
- 12:11for this to happen but we are looking
- 12:14for the candle to close Okay so the
- 12:16candle just closed this is a perfect
- 12:19example of what we are looking for Price
- 12:21comes down into this fair value Gap and
- 12:24it has a long Wick here small body and a
- 12:27long Wick sellers try to push down down
- 12:29or the most volume for the sellers was
- 12:31here below the close of the candle
- 12:33meaning that sellers try to push down
- 12:34aggressively buyers absorbed all of that
- 12:37selling pressure here in our key area
- 12:39and now we need to watch for the Delta
- 12:42now what we realistically want to see is
- 12:45you could after this candle closes you
- 12:48could just enter in a limit order let's
- 12:51just say right here at this level right
- 12:54above the pocc but we want to see the
- 12:56Delta change so it's a little bit bit
- 12:59less likely the probabilities are a
- 13:01little bit less likely if you don't see
- 13:03a Delta flip right now on this 5-minute
- 13:05candle that just closed the Delta isus
- 13:089915 if you wanted to be aggressive and
- 13:11take a position then yes you technically
- 13:13could you know enter in right here uh
- 13:17set your limit order wait for price to
- 13:18come down retest the POC of this candle
- 13:21and look for the reversal it would be a
- 13:23pretty aggressive entry but it can be
- 13:25done what we want to see is we want to
- 13:27see price create a green candle or in
- 13:30this case a blue candle have a flip in
- 13:32Delta see that confirmation that Delta
- 13:35is flipping buyers are now taking
- 13:36control and then we would place our
- 13:38limit order in this area so let's see
- 13:40what happens so now as we're looking at
- 13:42this candle we went from a red candle
- 13:45that had a negative Delta we witnessed
- 13:47the PC closed below the body of the
- 13:49candle we are in our key area the next
- 13:52candle closed green what we want to look
- 13:55at now is the Delta for this candle went
- 13:58from a - 915 to a positive 156 now
- 14:03that's not a massive uh change sometimes
- 14:06you'll see the changes be way higher but
- 14:08for Asia session um that is a pretty big
- 14:12change in Delta from one candle to
- 14:14another so what we're going to be
- 14:15looking for is we are going to be
- 14:18placing our limit order maybe one or two
- 14:20points above the POC of the candle so
- 14:24we'll place it right here and then we
- 14:26are going to be placing our stop right
- 14:29below this candle and we are going to be
- 14:31going for a one to two risk reward so
- 14:34let's see if price wants to tag us into
- 14:37this position so price is pushing up
- 14:39don't worry we don't want to chase this
- 14:42we want to wait for price to come down
- 14:44and retest this PO if price wants to
- 14:47move without us that is fine but we want
- 14:50to see it come back we need to be
- 14:51patient and this is something I struggle
- 14:53with but you know you guys might be
- 14:54better at it than I am so now we just
- 14:56got tagged into our trade we paused it
- 15:00price came down it retested the POC of
- 15:03the candle that we were watching the one
- 15:05that had the seller absorption on it so
- 15:08we want to look for a minimum of a one
- 15:11two risk reward now of course you can
- 15:13place your TP to take out recent highs
- 15:15or you can Target whatever you're trying
- 15:16to Target but the main point is is that
- 15:19you want to place your stop loss below
- 15:21the candle if price comes down and it
- 15:23breaks past this candle that we are
- 15:24watching for the entry this entire setup
- 15:27is invalid this is no longer going to be
- 15:29a valid setup so we are putting our stop
- 15:32loss right below the candle that we are
- 15:34watching and we are targeting a minimum
- 15:36of a one to two risk reward you can
- 15:38Target you know these highs let's say if
- 15:40you really wanted to or whatever else
- 15:42you're looking for another fair value
- 15:44Gap whatever but just to keep it simple
- 15:47we are only going to Target a one to two
- 15:49on all these examples so that you can
- 15:51get a better idea so let's watch price
- 15:54play out and let's see if this trade
- 15:55works
- 15:56out now something to note is this PC did
- 15:59close above the body of this candle but
- 16:01don't worry it was on the bid side and
- 16:03this is a blue candle we're not really
- 16:05too concerned with this if this was
- 16:08showing that once we entered this fair
- 16:10value Gap that there was buyer
- 16:12absorption meaning that the PC was on
- 16:14the right side or the ask side then this
- 16:16would probably tell us that we might
- 16:18need to move our stop to break even to
- 16:20minimize any risk but because it's on
- 16:22the wrong side we do not care about it
- 16:24and this right here is another sign of
- 16:26sellers getting absorbed by the buyers
- 16:28so this this is giving us more
- 16:29confirmation to hold this trade to our
- 16:31full TP here and if you really wanted to
- 16:35you could have added in right here price
- 16:37printed that seller absorption price
- 16:39came down retested the POC and now it's
- 16:42pushing back up so this is something we
- 16:44want to watch for right here we see that
- 16:47now buyers are getting absorbed a little
- 16:48bit in this fair value Gap that was on
- 16:51the way down so we want to make sure
- 16:54that we can minimize risk if you want to
- 16:57you can move your stop to break e even
- 16:59or you can move it right below this
- 17:01candle where the sellers were getting
- 17:03absorbed and then we can wait to see if
- 17:06price wants to hit our full
- 17:09TP all right so price hit our full TP
- 17:13and that was a successful one to two
- 17:15risk reward so just a quick recap on
- 17:18this example what did we look for we
- 17:20looked for our key area of interest that
- 17:22we were looking for in this case it was
- 17:24a 5minute fair value Gap we saw price
- 17:27come down on this 5-minute candle it
- 17:29created a long Wick down when this
- 17:31candle closed the POC was below the body
- 17:34of this candle so then once we had a
- 17:37green candle print and it closed we
- 17:40noticed that Delta changed from red to
- 17:42green or in this case red to blue then
- 17:44we end up placing our limit order for a
- 17:47buy position or a long right above the
- 17:50PC comes in it tags Us in and then it
- 17:53goes up we don't care about this in the
- 17:56sphere value Gap because this is
- 17:58something that that is on the wrong side
- 18:00the PC is on the wrong side in this case
- 18:02so we don't actually care about that
- 18:04price came down it printed the same
- 18:05thing again so this is giving us even
- 18:08more confirmation that sellers are
- 18:11getting absorbed and at this point once
- 18:14we saw price come up here and print that
- 18:16buyers were getting absorbed here in
- 18:18this fair value Gap then we can manage
- 18:21our risk a little bit you can move it to
- 18:22break even you can move up your stop
- 18:25loss to be right below this candle that
- 18:27printed the seller absor ion and then we
- 18:29just hold our trade so this is one
- 18:32example of it working out now obviously
- 18:34I cherry-picked this one just to show
- 18:36you what it looks like when it does work
- 18:38out there are times where you're going
- 18:41against the higher time frame analysis
- 18:43or there's obviously times where this
- 18:45doesn't work out okay but this is this
- 18:47is essentially what you're looking for
- 18:49all right so now we are looking at our
- 18:51second example this time we are going to
- 18:53be on our 15minute chart and for this
- 18:56example our area of Interest or area
- 18:59we're going to be watching for are these
- 19:01equal highs that was acting as a
- 19:03resistance and we eventually broke
- 19:05through and we are looking to see if
- 19:08price comes down and respects this and
- 19:10if we can find some absorption here on
- 19:12the 15minute so let's take a look at
- 19:13what happened right here we paused it
- 19:16this 15-minute candle closed price came
- 19:19down to where we marked our area of
- 19:21interest that we were watching which
- 19:22were these equal highs or resistance
- 19:25level that we ended up breaking through
- 19:27we're seeing if price now wants to
- 19:28respect this area price comes down
- 19:31sellers try and push past this area but
- 19:33they can't they fail there's a buyer
- 19:36here or buyers that are absorbing all of
- 19:38that selling pressure so now we have a
- 19:4115-minute candle that came down the PO
- 19:44when this candle closed is below the
- 19:47body of the candle and not only that but
- 19:50we went from a netive 2,000 contracts on
- 19:53mnq for the Delta to a positive 2,000
- 19:56contracts so in the previous example Le
- 19:59we were waiting for that Delta
- 20:00confirmation with the candle following
- 20:03the absorption candle but because in
- 20:05this example there was already a Delta
- 20:07flip here and price came down and in the
- 20:10absorption candle it is now caused the
- 20:12Delta flip we can go ahead and place our
- 20:15buy limit right here if price wants to
- 20:17come down and tag us into this trade we
- 20:19are going to place a stop loss right
- 20:21below the absorption candle and we can
- 20:24Target these highs up here or London
- 20:27highs which this is technically would be
- 20:29London Highs at 5:30 a.m. Pacific
- 20:31Standard Time price comes down and it
- 20:33breaks past this candle our trade is no
- 20:35longer valid we should not be in it
- 20:37anymore so we are going to see if price
- 20:40wants to tag Us in and we are going to
- 20:42see what happens
- 20:44here okay so we are tagged into this
- 20:47trade now it hit our limit order we are
- 20:49now in a long position we are going to
- 20:52set our stop loss right below the
- 20:54absorption candle and in this case we
- 20:57want to Target at least a one to two
- 20:59risk reward but because the one to two
- 21:02risk reward realistically would only be
- 21:05for about 25 points or so and it would
- 21:08be right here um we can just Target
- 21:11London highs let's say you thought we
- 21:12were going to take out London Highs at
- 21:15Market open we're going to see what
- 21:17happens now with price keep in mind if
- 21:21price in this candle ends up coming
- 21:23below and breaking past this bottom of
- 21:26our absorption candle this setup is no
- 21:29longer valid so there's no reason that
- 21:31we should be in it so it allows us to
- 21:32have a pretty tight stop loss and we can
- 21:34Target all the way up here so you know
- 21:36risking $28 to make $148 with one micro
- 21:40that's a pretty good risk reward if you
- 21:42ask me so let's see what
- 21:47happens and of course while this is
- 21:49playing out if you're looking on Lower
- 21:50time frames and you're also seeing
- 21:52absorption happening somewhere in this
- 21:5415-minute candle or this 15-minute
- 21:56candle you can manage your risk
- 21:57accordingly you can move your stop loss
- 22:00you can Trail your stop loss however you
- 22:02like to manage your risk whether it's
- 22:04scaling out contracts or adding some in
- 22:06taking some out you can do it however
- 22:08you want to do it I mean really this is
- 22:10just an entry model for absorption um
- 22:13that you can use with whatever strategy
- 22:15you're actually using okay well I was
- 22:18going to say we can move our stop to
- 22:19break even but there was no need to so
- 22:21we ended up hitting our full TP here for
- 22:24this all of the criteria here matched
- 22:26what we were looking for we had our key
- 22:28area that we were watching for in this
- 22:30case it was this resistance level that
- 22:32we ended up breaking through we were
- 22:34looking for price to find some type of
- 22:35support off of it price came down
- 22:38sellers try to push back below this
- 22:40level they failed to do so and our
- 22:42absorption candle printed right here and
- 22:45not only that but we had a Delta flip
- 22:47from negative - 2,000 contracts to
- 22:49positive 2,000 contracts so once this
- 22:5215minute candle opened up we thought we
- 22:54could place our buy limit here with a
- 22:57very tight stop loss right below it on
- 22:58the 15-minute time frame and targeting
- 23:01London highs it ended up working out all
- 23:04the criteria hit and this would have
- 23:06resulted in a successful trade I know
- 23:08that in the examples that I showed you
- 23:10obviously I picked them for a reason I
- 23:13knew they would work out but the point
- 23:15is is that this is an entry model that
- 23:17you can be using for your own trading
- 23:19it's not going to work out every single
- 23:21time there is still an element of
- 23:23discretion that needs to be used when
- 23:25you are using this type of Entry model
- 23:29but something to notice is that if you
- 23:31back test this strategy or this entry
- 23:34model you're going to find that it
- 23:36happens all the time throughout the day
- 23:39I mean we are now currently looking at
- 23:40the 3 minute time frame that 15-minute
- 23:43entry that we took with our key level
- 23:45right here there was also a three minute
- 23:47candle that printed that did the exact
- 23:49same thing you could have done the exact
- 23:51same model or entry on the 3 minute you
- 23:53know there's up here we are noticing
- 23:57absorption price comes down up here
- 23:59we're noticing absorption of the buyers
- 24:01price comes down down here there's
- 24:03absorption of the sellers price comes
- 24:04back up and it happens throughout the
- 24:07day but it's important that you only use
- 24:10this at Key areas that you use for your
- 24:12own strategy otherwise the probability
- 24:15of it actually working out is going to
- 24:17totally plummet and you want to make
- 24:19sure that you confirm the absorption by
- 24:23recognizing a Delta flip and the reason
- 24:25why is because with a Delta flip you're
- 24:28essentially watching the momentum change
- 24:31hands you're watching the control be
- 24:33taken away from the sellers and moving
- 24:35over into the buyers and now the buyers
- 24:37have control or vice versa and so you
- 24:41can ignore the Delta flip and you can
- 24:44enter off of just an absorption candle
- 24:46but it's going to be less probability
- 24:49that it's actually going to end up
- 24:50working out in your favor but
- 24:52nonetheless this is one of my favorite
- 24:54setups when it comes to actually trading
- 24:56with my footprint charts I use this with
- 24:59my actual trading strategy though so I'm
- 25:01not just entering trades only because
- 25:04I'm seeing absorption happen or I'm just
- 25:07only watching the footprint chart I'm
- 25:10watching my trading view I'm watching
- 25:11for my normal strategy I am watching for
- 25:13my key levels that I marked out
- 25:15pre-market before we even started
- 25:17trading but I'm watching for When Buyers
- 25:20get absorbed or sellers get absorbed at
- 25:22those key areas you know who's getting
- 25:24trapped and then if it is at an area
- 25:26that I was watching for to begin with
- 25:29then yes I am going to take the trade
- 25:31and it doesn't work out every single
- 25:33time but what I found out is that it
- 25:35works out enough for me to like to use
- 25:38this entry model so go ahead and back
- 25:40test it if one thing also I wanted to
- 25:43mention is with this platform a toss I
- 25:46don't think I've seen any other platform
- 25:48that has uh replay capabilities like
- 25:51this I mean a toss allows you to
- 25:55actually Replay in real time you can go
- 25:58back you can literally watch it at one:
- 26:02one speed you can watch the orders come
- 26:04in the market you can also use a toss to
- 26:09look at the Dom and see where orders
- 26:11were resting they allow that option too
- 26:14in their replay and it's by far the best
- 26:16replay that I've ever used it's way
- 26:18better than the trading view replay and
- 26:21just the replay alone is very valuable
- 26:25when it comes to wanting to back test I
- 26:27mean you don't even have to use this to
- 26:29back test footprint if you wanted to use
- 26:31your normal strategy and just back test
- 26:33it real time and not have choppy candle
- 26:36price action like how trading view has
- 26:39you can literally just use a toss for
- 26:40that and if you're interested in it they
- 26:42do have a 14-day free trial you can
- 26:45claim that by clicking the link below in
- 26:47my description and you can go ahead and
- 26:49use it and let me know what you guys
- 26:50think about a toss let me know what you
- 26:52think about the absorption strategy
- 26:55whether or not you might put it into
- 26:56your trading strategy or not
- 26:59and then in the next video we'll be
- 27:00talking about another strategy that I
- 27:02like to use when it comes to reversals
- 27:04by looking at footprint charts so until
- 27:07then I'll catch you guys next time peace
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