so candlesticks are great and that's

what we're all familiar with but imagine

you can actually go in depth to a

Candlestick and understand the

interaction between buyers and sellers

that have happened within each period on

a 5-minute candle a 15minute candle and

essentially see the real action behind

them the way we do this is by looking at

footprint charts so in this video I want

to break down what footprint charts are

the different type of footprint charts

understand the auction between buyers

and sellers and essentially how to use

footprint charts to our advantage so

with that being said let's dive into it

so here we have the Candlestick chart

which everyone is familiar with now when

we look at a footprint chart what we're

able to do is we're able to go inside

any single one of these candles and

we're able to go deeper right so I'll

take this candle I'll go deeper and I'll

be able to see right all of the

transactions happening here every single

transaction now this looks like a lot of

numbers and numbers all over the place

and this may confuse some people but we

are going to understand what this is we

are going to understand a full

understanding of footprint charts the

interaction of buyers and sellers types

of footprint charts and how to use this

so let's understand the interaction

first so you guys see two sides right

there's one side on the left right and

one side on the right okay so these two

sides the side on the left is the bid

the side on the right is the ask okay so

essentially the market is a big auction

right there is where the market

facilitates trades between buyers and

sellers now these are few things I want

you guys to understand on every single

trade there's usually an aggressor I'm

just going to put AGG there's usually an

aggressor a a participant that wants to

be aggressive be it the buyer be it the

seller whoever's the aggressor is

typically going in with a market order

they're saying I'm willing to pay

whatever I want for this particular

security at this time so I will be the

aggressor I will go in with market

prices then you have a passive

participant I'm just going to put pass

who usually goes in with a limit order

these are participants that are passive

and they're very important too but their

order types are limit orders so once

again we have passive participants and

aggressive participants aggressive

participants are going in with Market

orders passive participants are going in

with limit orders okay now when we look

at this as mentioned we have the bid on

the left and we have the ask on the

right now bid ask now if there's an

order for let's say

4585

4585 and there's one contract traded

there's typically one participant that

is aggressive either the buyer or seller

the way we see that is by looking at the

footprint chart so when I look at this

0167 what this is telling me is someone

had an aggressive order to

buy 167 contracts at this price an

aggressive order to buy hence why it is

on the ask side now if someone has an

aggressive order to sell they are

willing to sell to the next buyer so in

this predic predicament there was two

contracts that were aggressively sold

266 contracts aggressively bought that

was the transaction type so when we go

deeper and deeper within this we are

able to see that interaction we are able

to see something that is a finished

auction something that is maybe

unfinished auction which I'll talk about

as well but once again when we see this

in terms of interaction we're able to

see that hey 479 orders at this price

got filled at the bid if it got filled

on the bid and I want to ask you guys

this just pause for a second thing if

479 orders got filled on the bid who was

aggressive the buyers or the sellers

right if there was 479 orders filled on

the bid the sellers were aggressive if

there's

975 orders filled on the ask on the

right side that means the buyers were

aggressive because the buyers are

willing to pay a premium on price so

they're willing to be you know

aggressive if sellers are more

aggressive they're willing to sell at a

lower price passive participants are not

willing to buy at a higher price they're

willing to stay at the price they're at

hence why they use limit orders so

understanding this Dynamic is the most

important concept of orderflow it is the

most important concept of understanding

the interaction of buyers and sellers

now when we have this interaction our

job then becomes to identify the

interaction between the candles

now as a Trader I'm not looking at every

single footprint minute by minute or 5

minute by five minute and trying to

analyze it I'm looking at Key level so

for example I get into a key level and

imagine I get into a key level and we

hit that key level but we keep seeing

aggressive buy orders but Market is not

moving we see that a lot of participants

are aggressively buying here but the

market is not moving that means that

there are passive sell

that keeps selling to them there's a lot

of Supply Here hence why we're unable to

move and when that Supply is you know

stays active and the demand dies down we

start seeing it move down another

scenario could be as we start moving up

the aggressive buyers are no longer

there the volume dries down which you

know I'm looking down here the volume

dries down and as volume dries down I'm

seeing somewhat of a move down so when

you see some of my videos videos and I

talk about I'm seeing buyers in control

or I'm seeing massive Supply this is

what I'm talking about right so there's

different type of footprint charts and

like I said I'm going to explain more

Concepts if you're still a little bit

confused just stick through this whole

video with me I promise till the end you

will understand right so if you're

seeing this this is a bit an Ask

footprint right so like I said there's a

lot of different type of footprint chart

so on a bid and ask footprint you have

the bid on one side you have the ask on

one side what do theor represent right

the colors are just representing on that

line who is the aggressor so because

this is red there are more aggressive

sell orders as you can see 927 on the

sell 531 on the bit 93 27 on the bid

aggressively sold and 531 aggressively

bought right indicating that sellers

were like the Traders were more

aggressive on the sell side here when

you look here here you have 983 on the

bid a th000 on the ask buyers or

aggressive buyers were in control hence

wide screen that's the price

differential we're seeing right now

going into different type of footprint

charts as mentioned this is a bit and

ask so I will go here this is the AAS

platform like I said for Footprints you

guys can use AAS you guys can use Sierra

charts uh just preference what whatever

you guys prefer but this that I'm

showing you guys is atas uh platform

right now if I go here and I want to

kind of mess up my settings I can go and

I can have different I can say show me

the volume so in each transaction I see

the volume now if I go to bid and ask

see there's zero on the bid side 167 on

the ask side if I hit volume now I see

167 1K 2K 2K and so on I might say I

want to see volumes And Trades I can see

that so I can customize this however I

essentially want I can also make this

color scheme Delta I can make it solid

uh I can have none so if I have none you

know and I just look at this this is

just essentially showing me all the

interactions but I can't see the Delta

now you may ask what is the Delta what

is what what do those colors mean

essentially if there's 10 orders on the

bid let's say we put B and there are 20

let's just say there's 30 orders in the

ask the Delta here will be 20 right

because there's a difference of the buy

orders and the sell orders right so if I

go into one these examples and I let's

just say put in Delta right so if you

look at this 0 and 167 if I just make

this a Delta it'll say 167 and I can

keep this a color let's make it Delta

color see 167 hit the hit the ask 69 hit

the hit the hit the uh hit the ask so

the green are representing more orders

are hitting the ask hence why it's green

and the Delta numbers are just

representing that so if I see a Delta of

negative 313 at a certain level what

that's is implying it's implying that

there were about 3113 orders more hit on

the bid meaning aggressively sold that

is what that is representing when I look

there right and as I mentioned there's a

lot of different customiz abilities uh

one way to look at is bit and ask

profile right just like this uh some

people may create this as a Delta some

people may create this as volume I may

have additional footprint of volume just

to see where is the volume traded so if

I look here I get like a clear

identification of how volume is trading

how Delta is trading and when I look at

Delta for me what's important and I just

just to kind of give you a idea of where

and how I guess the footprint component

is important uh if I go into let's say

put the bid in ask and I go Delta

right when I look here I like to see

personally what is happening to price

action right so if let's say I go up

here what I'll see here here as a Trader

is I'm seeing that on the F minute chart

and this is a f minute for print as you

guys can see and I can adjust this to a

10-minute I can adjust this to a 30

minute I can adjust this to whatever but

you know for for this example I'm using

a 5 minute so if I if I go into a

particular trade right I can see where

the AG aggressive orders are where the

aggressive sellers are so if I look here

let's say we just look at this action

right this let's just understand this

really quick so if I look here I can see

that on the session as this instrument

goes higher and higher right we keep

going higher and higher we go higher we

make a new high uh as we make a new

higher and higher on every High

participants are aggressive participants

are aggressive on the high participants

are aggressive now as they're

aggressive uh there's there's a there's

a few things happening with the orders

right one thing that's happening with

the orders the Delta for these kind of

five minute blocks are staying stagnant

most of the aggressive buying or if any

aggressive buying is happening on the

upper side as it's happening on the

upper side what I see as a Trader most

of the time is I see passive sellers

being active that there's limit orders

hitting these levels that's number one

number two another thing I look at as

we're going into key levels is I look

for something called unfinished auctions

so anytime there's a high or a low made

in the in the movement right I look at

those levels where the highs and lows

are made and I identify if there is any

sort of Unfinished auction so an

unfinish auction looks something like

this this is what I want to see as a

Trader not this not this if we hit a

high I want to see a zero on one side at

least just just as basic knowledge right

because that implies that you know

Traders are in here traders in here

they're aggressively hitting the ask and

there's no orders on the other end the

auction is wiped out auction is finished

now of course we saw it here we didn't

see it here and we saw it here right so

it's not something where every time you

see an auction finished you go and you

think the market or the stock is going

to go down the idea is if the auction

hasn't finished on a high or a low there

is a probability that the market will go

there again to finish the auction and if

and when it finishes the auction we

might potentially reverse so that's one

thing to look at another thing to look

look at as I mentioned is to look for

exhaustion and look for absorption right

there are times where we can identify

that certain trades are exhausted in

terms of the big move so if I look at

this right if I looked at this move

right here just to give you guys some

context right we look here let's look at

the let's just kind of look at the

candle right we see the Market opens

Market opens strong makes a high here at

10:05 a.m. eastern time comes right back

goes to this high of

458 so obviously a key key level once we

come to this 45 85 essentially you know

and and we come into these key zones I

want to I want to look at the activity

in these key zones and identify how the

activity essentially played out so let

me just uh you know kind of kind of look

at where and how we can look at these

levels so I go here just to see right

this is kind of this is also kind of the

low right just to just to look at the

the markets in Inay activity and these

are levels I want to see so as a Trader

we open up we have some you know tough

action going on here we Wick down here

and as we Wick down here I want to see

what goes on with the auction process

what is going on and I want to

understand that now when I understand

something like this this is very

important right what is going on here

right there's a there's a lot of things

going on and I want to explain that so

one we get a very negative Delta 5

minute candle meaning that there were

more aggressive sellers on this 5 minute

full candle than there were aggressive

buyers when I look at the candle I see

most of the volume is compiling on the

lower side of the profile this is

showcasing the volume obviously we have

a lot of volume built up here the

interesting thing to me is this action

of a candle is going into our massive

demand Zone we go into a demand Zone

with aggressive sell orders but the

passive buyer step in now this is very

important guys think about this imagine

someone is aggressively selling

something into a key level and once

again the key level key zone is

important but price

holds what this means that we're getting

a lot of effort but we're getting no

reward right we're getting a lot of

activity but that activity is not

driving any sort of movement so because

this is pushing like it's we're seeing a

lot of aggressive sell orders but

they're not getting rewarded meaning

prices is not you know confirming as it

should that means someone is passively

buying so imagine with like an iPhone

you start selling an iPhone for let's

say iPhones you think are worth $1,000

you sell an iPhone for 700 and you're

like okay well if I sell it for 700 and

people keep buying it up and you're like

holy people are buying it up people

keep buying people keep buying and as

people keep buying that showcases

there's a participant or

participants active here willing to

absorb this sub willing to be aggressive

and the aggressive selling someone is

actively buying it up so don't also

confuse aggressive selling to Market

sellers are in control yes aggressive

selling sellers are aggressive but a

passive participant can step in and eat

up the orders and you know on a

footprint chart you might see aggressive

Delta negative Delta that sellers are in

control but they may you know the

passive buyer may be able to drive the

price up which is what happened here

right the passive particip comes in and

you know he or she's able to come in and

and and buy up now some people may say

well there's an unfinished auction so

price has to come down no unfinished

auctions are only contingent on lows and

highs of the day this is not the low of

the day the low of the day has been set

so I don't care if this finishes or

doesn't finish the auction what I do

care about is when we hit the high as we

go higher and higher I want to see

unfinish or finish auction so as we go

here see this is the high of the day

unfinish auction finish

unfinish finish and then we start

rotating down but even when we go into

the second level right and we start

understanding what is happening we

identify these key levels and you can

see as we get to this key level right or

we look at this you know kind of candle

the interesting about this candle is

when we look at this candle just as a

basic candle I guess it's it's very

interesting because we see this

rejection but when I go deeper into this

candle I can see that the most volume

have happened here there was not a lot

of transactions or activity happening

above here or down here when I look here

on this candle even though the body was

here I'm seeing most of the transactions

happen here so I'm able to see the shift

in transactions and and I'm also able to

see that with all the volume being here

and us getting negative Delta that

sellers are aggressively selling but

price is holding that confirms the move

of potentially going higher right we

come into this move which is the second

interesting part right we come into this

move we start seeing that you know for

for a short-term move we break this area

with strength buyers are in control we

see aggressive uh Delta strong Delta

keep going higher and higher and as we

get higher and higher some interesting

things that happen is you know the the

Delta isn't moving as strong with price

moving up so as price is moving up I'm

not seeing some real expansion on price

movements I'm not seeing real aggressive

buying step in price kind of starts

balancing out so it kind of becomes you

know a big question mark now if price

wasn't balancing out and price wasn't

moving up and we got strong Delta that's

actually a good sign but you know if you

look at the Delta for each 5 minute you

know 593 27 here we're essentially flat

the buyers and sellers are both kind of

confused we come in here no real

Movement we go in here no real movement

and then right away when sellers do take

control we do fill in that high of the

day sellers come in the Delta goes

extremely aggressive we get 4k on the

candle we get a nice volume shift right

sellers or Traders are in control not

much activity second activity gets

established and there's a lot of

aggressive selling that is being

rewarded meaning price is moving

alongside with it then obviously you can

see price starts flushing right so you

know want to want to leave you guys with

a few things really quick so

candlesticks are great footprint charts

allow us to go deeper now I don't want

you guys to go into every single chart

and start saying or every single action

and start saying footprint charts NE are

the Holy Girl footprint charts are just

tools our job as traders to use the tool

to our advantage use the tool to

understand the interaction between

buyers and sellers the places and the

ways these tools are important they help

us understand where we're getting

imbalances where we're getting you know

auctions that are unfinished where are

we getting uh areas of absorption where

are we areas of possible exhaustion

right so where can we see where the

activity is happening within a candle so

it gives us this structure our job once

again is to put that information with

the context of the market we never want

to look at an individual candle without

understanding the context without

understanding the session without

understanding what is happening from a

larger you know picture and take trades

so for example this level 40 4585 may be

a massive level that we have massive

supplies level that we're going into

maybe we might be into a massive demand

level so our job once again is very

important to identify these zones these

levels that we're watching and why we're

watching these levels why we're watching

these zones right so if I was to just

look at this right these levels have

played a significant role right right

these you know even even if I go back

here right even this level just just for

context purposes has played somewhat of

a significant role so going back in

history looking at the significant

levels and understanding the context

right and putting that context together

with footprint charts is a is a great

indication of understanding the market a

few tools that are very helpful uh you

know you have Market profile to

understand where the market is balanced

or ear balance uh you have footprint

charts just to show you the activity of

the auction and then execution wise you

can just look at the Dom or even

sometimes this it just depends on what

your trading style is and if you do want

to pick up this tool once again I'm not

saying this is a Holy Grail tool or it's

the tool that everyone needs you need to

know where and how to incorporate it

within your trading and you need to know

what you are looking for so before you

even go into applying this rule just

understand the auction a little bit

better understand how the participants

get involved where they get involved and

guys trading is kind of like an art

right our job is to read what the market

participants are doing and why and

create create that story line to get the

best possible trades that we can so with

that being said I hope you guys enjoy

this video and if you got up until this

this long um I'm sorry for you know

delaying uploading this video I've been

wanting to upload this video for really

really long period of time and if

there's more topics you guys want me to

cover just comment down below and I'd be

more than happy to talk about more

things that you guys want to hear from

me and once again thank you so much for

tuning in guys