3 Differences Between Consolidation & Absorption [FOOTPRINT CHART]
Vložit
- čas přidán 20. 07. 2024
- 👉 go.elitetraderworkshop.com/Free
This footprint trading session looks at 3 differences between a consolidation and an absorption and the types of outcomes that usually follow. The secret to understanding these differences comes down to the type of price action activity which can best be identified on the footprint chart.
In summary, the 3 differences are:
1) High relative volume
2) Price point volatility
3) Initiative conclusion
Brannigan uses the E-Mini S&P500 to review these points. From this analysis It's important to understand that an absorption often sees higher amounts of volume being transacted at the extremes of the range in which the market is trading and typically leads to a stronger breakout. On the other hand, while a consolidation may appear identical, there is less volume being transacted and can result in fake-outs above and below the trading range.
Learn more about our 8-Week Career Trading Course and get 3 Mentored Trading Lessons FREE:
AxiaFutures.com/lp/Career-Tra...
Gain access to more than 50 streams like this per month with professional traders. That's a total of over 1500 mins at £60 per month, equaling just £1.20 per stream.
Sign up now and get a free 2-week trial:
AxiaFutures.com/Membership-Ac...
All of our traders use TT for fast and efficient execution on the DOM.
Try the TT platform free for 4 weeks:
www.TradingTechnologies.com/t...
Axia Futures engages in Developing World Class Traders Globally.
#HowToTrade #FootprintChart #Trading
Follow us at:
Website: www.AxiaFutures.com/
Facebook: / axiafutures
Twitter: / axiafutures
Instagram: / axiafutures
![5 Principles To Identify Auction And Absorption [FOOTPRINT CHART]](http://i.ytimg.com/vi/dfz2rvzSpN4/mqdefault.jpg)
![5 Principles To Identify Auction And Absorption [FOOTPRINT CHART]](/img/tr.png)
![The Exhaustion Reversal [TRADING STRATEGY]](/img/n.gif)
I love his use of the word 'Effort'. He has read Wyckoff!
Good info. Thanks for making these type videos!
Classical Wyckoff distribution....really well presented 👍
Beginning to grasp the concept; feel a bit over whelmed; analyses paralyses…actually this is a good next level trading skill….
Super analysis 🙏 Thanks
So the point is: on that resistance price point of your index future, many people already shorted upfront (limit order). So any buy market order is effectively covered up by those outstanding limit sells order. Hence price is not moving up.
Is that the correct understanding?
Very informative. Very concise. Thank you.
I do have a request. Could you take a look at the THRM.v stock and relay what we have seen the last few weeks. I believe it is absorption..
👌👌👌
Would you see any impact if you were able to isolate the big lot traders in the range discussed as opposed to an aggregate of lots in this range.
Regards
Sourh african living in Toronto
There is another type of absorption involving price behavior which is also very cool but very math intensive. Looking for an intuitive view on this. Though I am happy to have stumbled onto this, which is likely of more practical use.
08:09 that switch, my eyes started bleeding 🥹
mean (1 ) Absorption (2 )then again test and face aggressive sell and then (3 ) selling initiative came.
I am pretty skeptical of any theory behind strategies till I run thorough statistical analysis on it and I'm doing that on these ideas. However, this presenter has an exceptional teaching talent. It's just so easy to listen to him, and follow the talk. Thanks!
Go trade inverted triangles then.
@@mnsanabu Pardon!?
More than volume, which is Markets bid/Markets Ask combined, I would be more inclined to observe Delta to identify absorption as high volume being the total of bid/ask, the fact that it is high could just mean that there is some form of balance between sellers/buyers and therefore prices not moving higher/lower. A high positive Delta and prices not moving further up or down does indicate absorption. Wouldn't you say delta is more relevant than actual volume size?
Delta isn't more relative to having high volume size, it is much more important to combine them both together. The markets could just be consolidating the price range to which the Delta could be very Poitive/Negative even if the price doesn't move and if the candle moves in the oppostie direction, it would be a Delta Divergenz and not an Absorption (low volume). If there isn't high volume then it is a consolidation to which the move could therefore after continue it's actual trend to where as if there is high volume with opposite delta over a price range and a certain amount of time (about 15 min) then it could very well be an absorption to which the market could (probably will) change it's direction.
" the fact that it is high could just mean that there is some form of balance between sellers/buyers" - If there were a balance between buyers and sellers then there wouldn't be high volume, it would actually be the opposite because they would be no reason to trade into a direction.
I hope I could help! :)
@@DannonJake spot on !
Guys I am so confused I watched this video twice and still don’t understand what is absorption. Is it just basically high volume that’s it
Type of activity at the zone areas
if they say they can trade profitable, they could scale their money up to billions right ?
What software is it
they use sierra but nt8 is fine too
Have you guys taken their course?
@@hhjihhj4649 no
@@Lljejsuhxhn Lucas do you know any good places to learn footprint this guy is confusing
@@hhjihhj4649 yes trader dale explains it fine but axia futures is more advanced
Be Dynamic the flow or orders
Wish I could understand but I don't