Orderflow & Footprint Analysis: A Trader's Journey

Sell Module (SMT Approach+FOOTPRINT)
Pre-condition:

 

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.

Sell Module (SMT Approach+FOOTPRINT)
Pre-condition:

 

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.

THIS SMT WHAS UNCLEAR



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:
4. Delta prints positive (buyers aggressive) but price fails to make new highs.
5. Shows trapped longs — ideal for fade setup.
6. Sometimes a second delta divergence confirms continuation (double trap).
7. Step 2 — Delta Divergence Confirmation:
   THIS TIME I DONT NEED ANOTHER DELTA DIVERGENCE , i ENTER ON THE UNICORN CANDLE (BEARISH CANDLE WITH IMBALANCE ON THE TOP LEFT SIDE )

Not a A+ setup because i just had 1 time delta divergence on the top


Sell Module (SMT Approach+FOOTPRINT)
Pre-condition:

 

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

1. Step 2 — Delta Divergence Confirmation:
2. Delta prints positive (buyers aggressive) but price fails to make new highs.
3. Shows trapped longs — ideal for fade setup.
4. Sometimes a second delta divergence confirms continuation (double trap)
   
   This time i see this large delta in the bearish candle and took a entry of this , this is not a strong signal !

Hello everyone,
It has been a while, but as I mentioned before, I post whenever I feel like it.
This time, I’m sharing a full market analysis and explaining how you don’t need to stay glued to the screen all day.
Step 1:
First, I mark my POIs on the higher time frame (HTF) and set alerts on my zones.
This time, price has reached a demand level.



step 2:

Additionally, I look for SMT and a BOS from this SMT zone.



step 3:

If this is confirmed, I want price to return to around the 50% level of my zone and set a alert.






Step 4
Price hit my alert, so I opened my order flow platform to look for signals. This time, I saw strong absorption at the 50% level when price pushed higher.

Please send set file setting

i think i need to upload it or so they dont allow me to send any zipfile or other file :/

Step 1:
First, I mark my POIs on the higher time frame (HTF) and set alerts on my zones.
This time, price has reached a demand level.




step 2:

Additionally, I look for SMT and a BOS from this SMT zone.



step 3:

If this is confirmed, I want price to return to around the 50% level of my zone and set a alert.



Step 4
Price hit my alert, so I opened my order flow platform to look for signals. This time, I saw strong absorption at the 50% level when price pushed higher.

Hi. Great thread. Which charting software do you use to see the delta?

cluster delta the original platform not the mt4/5 version

Ok thanks. Do you know if the mt4 version is any good? Reason I ask is i extensively use mt4, so would like to keep everything on one platform.

Can I use this 5 minutes chart only without orderblock is this ok also double confirmation best I mean absorption and is this ok prop account passing

the mt4 version is fine, in my telegram account you can find the link of the software
https://t.me/FlashcardsOrderflow

whatever strategy that makes money is good for propfirms if you follow there rules ... but using orderflow to exicute on there platform is not against the rules or they will not notice. The thing is that if you use 5 minutes your stoploss can be small and they have big spreads

you can look at indicators on tradingview. although there are many footprint indicators there, i dont think the data on tradingview is straight from cme(for futures instruments like mnq1, nq etc.) as far as for forex pairs i dont think there is any real volume data except tickvolume. Basically this type of trading is solely for futures instruments and you have to get the right volume data for it and also there are advanced indicators on special platforms that can show you what the buyers and sellers are actually doing. But none of that unfortunately is free.

Ok I mean what about orderblock can use directly smt in 5 minutes using orderfolow confirmation accordingly you can I get win rate atleast 50% percent winrate 1.2 rr please explain details

yes you can use straight from cme on TV but its expensive , if you use TV on a regular chart of forex you only see the orders from the clients from that broker so you information will not be correct.

You can do the research and backtesting by your own experience...

I give you a very mechanical system, its on your side how to use this information.

Hi Michael,

Just came across your profile by chance and really like your trading strategy, I know this is a big as but would you be able to break it down the logic behind your system as a whole?

I've been trying to figure out forex trading using volume footprints and orderflow like you do, but not really anywhere that I've searched make it clear. if you don't midn can I ask the following:

Do you use the futures for volume analysis and once your signals are met you then initate a trade on the forex pairs?

I'm not trying to rip your strategy point for point I'm devloping my own but I need some logic behind what it is your doing. If you have the time this would be greatly appreciated

Hi Michael,

As a beginner, i wanted to understand orderflow as i see the importance of leading indicator.
can you help me point to some resources to get started with.
any orderflow tool free to practice on?

Regards
Ram

Why the ancient art of "effortless power" might be your secret weapon in gold, silver, and in trading
I'll admit it—when I first heard someone compare commodity trading to Tai Chi, I thought it was just another mystical metaphor that sounds profound but means nothing. You know the type: "Trade with the universe" or "Be like water, my friend."
But here's the thing: after years of getting whipsawed in gold markets, overleveraging silver positions, and watching oil blow past my stops, I started paying attention. And what I discovered wasn't philosophy—it was a practical framework that completely changed how I trade.
The Power of Doing Nothing (Seriously)
Let's start with the most counterintuitive concept: Wu Ji, or the state before action.
In Tai Chi, every movement begins from absolute stillness. Not "I'm waiting impatiently for my setup" stillness, but genuine neutrality. No bias. No itch to click buy. No FOMO watching that gold chart climb without you.
Here's what this looks like in real trading:
You wake up, check your charts, and... nothing. The setup isn't there. So you close your laptop and go about your day. Revolutionary, right?
The problem is that most of us treat trading like it's our job to do something. We scan for opportunities, force interpretations onto ambiguous price action, and convince ourselves that "low volatility = missed opportunity."
Wu Ji teaches the opposite: the market will tell you when it's time to act. Your job isn't to predict—it's to recognize.
When I stopped trying to trade every day and started waiting for actual alignment (price structure + time cycle + volatility compression), my win rate jumped from 72% to over 86%. Same strategies. Different mindset.
Root: Why Most Traders Are One Bad Trade Away from Tilt
In Tai Chi, if you don't have root—that stable, grounded connection to the earth—you'll get knocked over by the slightest push.
In trading, root is your risk management structure. Position sizing. Stop placement. The maximum loss you can take without emotional damage.
Here's a simple test: If a position keeps you up at night or makes you check your phone during dinner, you don't have root. You're leaning forward, off-balance, vulnerable.
I learned this the hard way during the 2020 oil crash. I was "certain" oil would bounce at $30. Then $25. Then... well, we all know what happened. My position size was too large, my stop was too wide, and when WTI went negative, I wasn't just wrong—I was destroyed.
Now I follow one rule: no single trade can affect my emotional state. If it does, the position is too big. Period.
Weight Shifting: How to Actually Identify a Trend (Without Getting Faked Out(FU**)
Tai Chi practitioners spend years learning to shift their weight completely from one leg to the other. No in-between. No hesitation. Full commitment.
Markets work the same way.
A real trend happens when capital decisively shifts from equilibrium into direction. That sideways chop you keep trying to trade? That's equal weight distribution. The market hasn't committed yet.
The pattern I watch for:

1. Price breaks structure (resistance becomes support, or vice versa)
2. The break holds on a retest
3. Momentum confirms with expanding volume/volatility

Until all three happen, I'm in Wu Ji—watching, not trading.
Gold gave us a perfect example in late 2024. After months of consolidation around $2,050-$2,100, it finally broke $2,150 and held it through multiple retests. That was weight shifting. That's when I entered long positions, not during the breakout, but after the market confirmed its commitment.
Yielding: The Art of Not Chasing
Here's where most traders self-destruct: they chase.
Breakout happens → FOMO kicks in → they buy the top → immediate pullback → stop gets hit → price resumes higher without them.
Sound familiar?
Yielding means letting force pass before you respond. In trading terms: wait for the pullback.
Strong trends always pause. Gold doesn't go from $2,600 to $4,500 in a straight line. It rallies, pulls back to support, rallies again. Those pullbacks are your entry points—lower risk, clearer structure, less emotional pressure.
I now have a rule: Never enter on a breakout candle. Wait for the retest. If the trend is real, you'll get your chance. If it's not, you just saved yourself a losing trade.
Silk Reeling: Riding the Wave Without Falling Off
Markets don't move in straight lines—they spiral, wave, expand, and contract. Tai Chi calls this continuous motion "silk reeling," and it's the key to staying in winning trades.
The biggest mistake traders make isn't entering badly—it's exiting too early.
You get into a gold position at $3,200, it runs to $3,400, pulls back to $3,300, and you panic-exit thinking the trend is over. Then it rallies to $3,800 without you.
Silk reeling teaches you to stay connected to the movement. As long as the structure is intact—as long as higher lows are holding, as long as the spiral continues—you stay in.
I use a simple visual check: Are we still making higher highs and higher lows? If yes, I hold. If the pattern breaks, I exit. No emotion, just structure.
Fajin: When It's Time to Act, ACT
All this talk about patience and yielding might make you think Tai Chi trading is passive.
It's not.
Fajin is the explosive release of energy at the exact right moment. In trading, this is execution—entering with full conviction when all conditions align, and exiting decisively when structure breaks.
Here's what kills traders: hesitation. You've waited weeks for your setup. All conditions are met. And then... you second-guess. "Maybe I should wait for more confirmation." "What if I'm wrong?"
By the time you enter, the moment has passed.
Or worse—you're in a losing trade, structure has clearly failed, but you "give it one more candle" to turn around. Spoiler: it doesn't.
When it's time to act, you act. No negotiation.
Time: The Missing Ingredient Most Traders Ignore
Price levels are everywhere. Support. Resistance. Fibonacci retracements. Everyone sees them.
But price without time is just noise.
This is where Gann cycles, seasonal patterns, and volatility compression come in. Gold at $3,200 in March might do nothing. Gold at $3,200 in October, during a major cycle turn, could explode higher.
I've started tracking:

1. Major cycle dates (90, 180, 270, 360-day intervals)
2. Seasonal tendencies (gold's Q1 weakness, Q4 strength)
3. Volatility compression periods (tight ranges before big moves)

When price reaches a key level and time aligns, that's when I pay attention.
The Practical Result: Trading Less, Winning More
Since adopting this Tai Chi-inspired approach, here's what changed:

1. I trade 70% less frequently (and my account is up more than when I was overactive)
2. My average loss is smaller (because I enter closer to equilibrium)
3. My average win is larger (because I hold through normal pullbacks)
4. I sleep better (because my position sizes don't create anxiety)

Most importantly, I stopped fighting the market. I used to feel like trading was combat—me versus the chart, trying to outsmart it, predict it, control it.
Now? I just align with what's already happening.
Your Homework (If You're Serious About This)
Try this for the next month:

1. Track how many trades you take purely out of boredom or FOMO. Be honest. Write them down.
2. Before entering any trade, ask: "Am I in Wu Ji, or am I forcing this?" If you feel urgency, wait.
3. After every trade, win or lose, note whether you had proper root. Did the position size feel comfortable? Or were you stressed?
4. Count how many times you chase a breakout versus waiting for a pullback. Then compare the results.
5. Review your exits. Did you exit because structure broke, or because you got scared?

The goal isn't to become some Zen master. It's to stop fighting forces you can't control and start aligning with the ones you can.
Commodity markets reward patience, discipline, and adaptability. Not coincidentally, those are exactly what Tai Chi trains.
Where others chase, you wait.
Where others fight, you yield.
Where others panic, you hold your root.
And over time, you realize: strength doesn't come from aggression—it comes from alignment.
What's your biggest challenge with patience in trading? Drop a comment below. Let's talk about it.