Orderflow & Footprint Analysis: A Trader's Journey

1. This is NOT a proven, for-sale system.
2. This is NOT financial advice.
3. This is my way of analyzing the market, and I want to share it to help others develop their own trading style.

What This Thread Is About:

1. The Core Concept: I will explain how I use the Footprint chart to identify imbalances, absorption, and key liquidity levels that guide my entries.
2. Market Examples: I will post charts from my trading sessions the main forex pair (6E,6B,6A...) and break down my thought process.
3. Weekly Recaps: I will try to provide weekly examples and reviews of key setups I took or watched. (This is not a promise; I still have my own private life with family and needs!)
4. Discussion: I welcome questions and discussions about orderflow concepts. We can all learn from each other.

My Philosophy:
I believe price is king, but the footprint shows you the army behind the king's movements. It's about understanding the auction process and finding moments where one side (buyers or sellers) is overwhelmingly in control.

you can follow me on telegram : t.me/FlashcardsOrderflow

Attached Image (click to enlarge)

Attached Image (click to enlarge)

1. Price was making a new high or was near a prior high.
2. However, looking at the delta (the net difference between buying and selling volume), I saw a divergence.
3. The upward price move was not supported by strong buying volume (low or negative delta). This is a major red flag. It means the buyers are exhausted and are getting trapped in long positions at the top.

2) Sellers Step In - Imbalance & Confirmation

1. Right after the divergence, we see the first strong bearish candle.
2. This candle shows a seller-side imbalance (a large, predominantly red footprint cell). This tells us sellers are now stepping in aggressively and are in control.
3. Crucially, this move down also came with an increasing negative delta, confirming that the selling pressure is real and accelerating. This is our confirmation.

3) Entry - On the Test of the Weakness

1. My entry was not at the very top. I waited for a small pullback.
2. The next candle (our entry candle) was another bearish candle that tested the high of the previous bearish imbalance candle.
3. This candle also printed a bearish imbalance, confirming that sellers were still firmly in control and rejecting any attempt by buyers to push price back up.
4. Entry: Short on this candle.
5. Stop Loss: Just above the high of the 1st signal candle
6. Profit Target: 2:1- 3:1

1. I like to see either no imbalance or 3 stacked imbalances inside the FVG zone.
2. This gives me a clear inefficiency that price may rebalance into before continuation.

2 Absorption Candle

1. Buyers trapped: Delta is positive (aggressive buyers),
   yet the candle closes bearish → strong absorption by sellers.
2. This signals that smart money is offloading into late buyers.

3 Confirmation Phase

1. After the trap candle, I look for seller strength to confirm the bias.
2. No entry here — rules say wait for confirmation.
3. It worked out and gave a good entry zone (my SL would’ve been above the FVG)
   but sticking to rules > catching every move.

4 Second Absorption Signal

1. Another delta divergence appears — more buyers than sellers.
2. Candle still closes bearish, confirming continuous absorption.
3. This is clearer in futures data, not always visible on FX charts,
   but still a strong confluence for the short side.

5 Entry Candle

1. After the absorption, I finally get a clear sign of seller strength.
2. Entry could be taken on candle close, confirming shift in orderflow.

Summary
Element Observation

Bias Short (based on SMT divergence)
Confirmation FVG retrace + orderflow absorption
Entry Trigger Seller strength candle close
Stop Loss Above the FVG zone


Overall: A clean and structured short setup — SMT + FVG + Absorption alignment gave a high-probability confirmation. Patience paid off even without entry.

Attached Image (click to enlarge)

1. I want to see sellers getting trapped with high volume and delta divergence, indicating absorption and a potential shift in control.

Delta Divergence & Imbalance:

1. Another delta divergence showing seller/buyer imbalance — this adds confluence that the move is genuine and not just a liquidity grab.

Buyer Strength Confirmation:

1. Finally, I want to see buyers stepping in strong — increasing delta, positive imbalances, and footprint confirmation before entering.

Once all these conditions align, I’ll be looking for a long entry from the FVG retracement, targeting the next liquidity zone above.

Attached Image (click to enlarge)

Attached Image (click to enlarge)

Attached Image (click to enlarge)

Attached Image (click to enlarge)

Sell Module (SMT Approach+FOOTPRINT)

1. Identify SMT (Smart Money Technique) divergence between correlated pairs (AUDUSD VS EURAUD you can invert the chart on tradingview).
2. Market should show signs of exhaustion or imbalance.

Step 1 — Buyer Trap at the High:

1. Price trades into a Fair Value Gap (FVG).
2. High volume with both buyers and sellers active → indicates absorption.
3. Buyers fail to extend, creating a trap.

Step 2 — Delta Divergence Confirmation:

1. Delta prints positive (buyers aggressive) but price fails to make new highs.
2. Shows trapped longs — ideal for fade setup.
3. Sometimes a second delta divergence confirms continuation (double trap).

Step 3 — Seller Strength Confirmation:

1. Sellers step in aggressively → large negative delta, strong volume footprint.
2. Price starts breaking structure down.
3. Enter short after confirmation or on retest.
   

Attached Image (click to enlarge)

Attached Image (click to enlarge)

1. Identify SMT (Smart Money Technique) divergence between correlated pairs (AUDUSD VS EURAUD you can invert the chart on tradingview).
2. Market should show signs of exhaustion or imbalance.

Step 1 — Buyer Trap at the High:

1. Price trades into a Fair Value Gap (FVG).
2. High volume with both buyers and sellers active → indicates absorption.
3. Buyers fail to extend, creating a trap.

Step 2 — Delta Divergence Confirmation:

1. Delta prints positive (buyers aggressive) but price fails to make new highs.
2. Shows trapped longs — ideal for fade setup.
3. Sometimes a second delta divergence confirms continuation (double trap).

Step 3 — Seller Strength Confirmation:

1. Sellers step in aggressively → large negative delta, strong volume footprint.
2. Price starts breaking structure down.
3. Enter short after confirmation or on retest.
   
   
   
   Attached Image (click to enlarge)

   
   
   
   
   Attached Image (click to enlarge)

   
   
   
   
   Buy Module (SMT Approach+FOOTPRINT)
   Pre-condition:
   
   
4. Identify SMT (Smart Money Technique) divergence between correlated pairs (AUDUSD VS EURAUD you can invert the chart on tradingview).
5. Market should show signs of exhaustion or imbalance.
6. 
   Step 1 — Sellers Trap at the Low :
7. Price trades into a Fair Value Gap or PLOD (FVG).
8. High volume with both buyers and sellers active → indicates absorption.
9. Sellers fail to extend, creating a trap.
10. 
    Step 2 — Delta Divergence Confirmation:
11. Delta prints Negative (sellers aggressive) but price fails to make new LOWS.
12. Shows trapped lows — ideal for fade setup.
13. Sometimes a second delta divergence confirms continuation (double trap).
14. 
    Step 3 — Buyers Strength Confirmation:
15. Buyers step in aggressively → large positive delta, strong volume footprint.
16. Price starts breaking structure up.
17. Enter long after confirmation or on retest
18. 
    

Attached Image (click to enlarge)

Attached Image (click to enlarge)

Attached Image (click to enlarge)

Attached Image (click to enlarge)

Attached Image (click to enlarge)

Attached Image (click to enlarge)

Attached Image (click to enlarge)

1. Focus on Delta
   1. You’re monitoring the order flow delta (the net difference between buying and selling pressure).
   2. When you see a big delta, you mark it—this signals strong buying or selling activity.

2. Trade Setup
   1. You prefer to sell when price moves below a key level after observing a strong delta.
   2. You look for a strong volume sell candle to confirm the move.

This is essentially a delta + volume confirmation strategy, where:

1. Delta identifies potential exhaustion or accumulation of orders.
2. Price reaction + volume candle gives confirmation for the trade entry.

A few tips to refine it:

1. Make sure the delta spike aligns with support/resistance levels—it strengthens the signal.
2. Watch for divergence between delta and price; e.g., price going up but delta selling strong can hint at a reversal

Attached Image (click to enlarge)

Attached Image (click to enlarge)

1. Identify SMT (Smart Money Technique) divergence between correlated pairs (AUDUSD VS EURAUD you can invert the chart on tradingview).
2. Market should show signs of exhaustion or imbalance.

Step 1 — Buyer Trap at the High:

1. Price trades into a Fair Value Gap (FVG).
2. High volume with both buyers and sellers active → indicates absorption.
3. Buyers fail to extend, creating a trap.

Step 2 — Delta Divergence Confirmation:

1. Delta prints positive (buyers aggressive) but price fails to make new highs.
2. Shows trapped longs — ideal for fade setup.
3. Sometimes a second delta divergence confirms continuation (double trap).

Step 3 — Seller Strength Confirmation:

1. Sellers step in aggressively → large negative delta, strong volume footprint.
2. Price starts breaking structure down.
3. Enter short after confirmation or on retest.