Reading the Footprint Chart
Each candle in a Footprint Chart tells a story. It is your job as a trader to be able to intercept what this story is trying to convey. As a way to help you disyfer the ‘encrypted’ message, here are the most common types of stories behind these trades.
High Delta with High Volume: If there is a high total green Delta with a high volume means that there was a major battle fought out between Buyers and Sellers in which the Buyers bought more in the end. However if the actual price stays the same, means that the Sellers are staying there. Therefore there is a strong possibility of a reversal in which the market goes down. However, if there is a high total green Delta with a high volume but prices are moving in the upward direction, then this shows the direction of the wave for which the market moves upward. Since the volume is high would mean that in either situation, the price moves shall be slow.
High Delta with Low Volume: If there is a high total green Delta with a low volume means that all Buyers were purchasing the Market with no Sellers purchasing the Market. However if the price stays the same, then the Sellers, while they didn’t get involved in purchasing the Market, you see they didn’t run away. Therefore there is a strong possibility of a reversal in which the market goes down. However, if there is a high total green Delta with a low volume but prices are moving in the upward direction, then this shows the direction of the wave for which the market moves upward. Since the volume is low would mean that in either situation, the price moves shall be fast.