This is how I analyze footprint charts!

Summary

In this video, the speaker discusses their approach to analyzing market behavior by observing volume shifts and how buyers and sellers react at key price levels. They explain how passive buyers can become aggressive and drive prices higher, but question whether that momentum can be sustained. The speaker also emphasizes the importance of detecting buyer presence and aggression, and how a lack of these can lead to a slow fade in price. Their strategy revolves around understanding the dynamics between buyers and sellers to predict market movements effectively.

Takeaways

• 😀 Buyers and sellers react to specific price levels, with their responses indicating market direction.
• 😀 Volume shifts play a crucial role in understanding the sentiment of buyers and sellers at different price points.
• 😀 Sellers attempt to push the price lower, but passive buyers can step in and reverse the trend.
• 😀 The aggressiveness of buyers is a key factor in determining whether a price movement will continue upwards.
• 😀 If buyers are not as aggressive at a certain level, there’s uncertainty about the sustainability of the price movement.
• 😀 The lack of aggressive buyers at a critical price point raises questions about whether the market will continue to rise.
• 😀 Observing passive buyers helps identify potential turning points in the market.
• 😀 The absence of buyers or failure to accumulate at important levels can lead to a slow fade in price.
• 😀 The market may stall or reverse if buyers do not show up with the same intensity as they did earlier.
• 😀 Understanding the shift in buyer behavior is essential for anticipating the next move in the market.

Q & A

What is the first step the speaker takes in understanding market behavior?

The speaker begins by understanding the volume shift and how buyers and sellers respond at certain price levels.

What happens when a lot of orders are stopped out?

When a lot of orders are stopped out, sellers attempt to push the price lower. However, passive buyers step in and drive the price higher.

How does the speaker evaluate whether the buyers are aggressive enough to move the price higher?

The speaker questions whether the passive buyers who became aggressive are able to maintain their aggressiveness and continue driving the price higher.

What was observed when the price reached a certain level?

When the price reached the specific level, the aggressive buyers were not present, and the buyers did not show up the same way they did earlier.

How does the speaker react when aggressive buyers do not show up at a critical price level?

The speaker becomes uncertain, entering a state of doubt about whether the buyers will continue to be active at that level.

What assumption does the speaker make if the buyers fail to show up at the given level?

If buyers fail to show up and there is no accumulation or aggression from them, the speaker assumes that the price may start to fade slowly.

What does the speaker mean by 'passive buyers'?

Passive buyers are those who enter the market without aggressively pushing the price up but still influence the price by stepping in during key moments.

Why is the speaker questioning whether the buyers are truly aggressive?

The speaker is questioning if the buyers who were initially passive and then aggressive are capable of maintaining their level of aggression to keep the price moving higher.

What does the speaker mean by a 'slow fade in price'?

A 'slow fade in price' refers to a gradual decline in price when buyers are not actively driving the market, leading to a potential weakening of price movement.

What is the significance of watching the price at specific levels for the speaker?

The speaker places importance on watching the price at specific levels to determine whether buyers are actively accumulating or whether price movement is slowing down.