Initiative Buying Footprint Pattern

Newton's first law of physics states an object at rest stays at rest and an object in motion stays in motion unless acted upon by an unbalanced force. The same is often true for the markets, in whatever time frame you view them. Market will drift in a direction until an opposite force (buyers or sellers) counters the direction of the drift. Footprint charts capture this force on screen in real time to create a better visual of market forces.

Most users who employ the MarketDelta Footprint chart are using it to track markets intra-day and intra-day markets exhibit periods of balance, rotation, breakout, and trend. There are many patterns to watch for, but if nothing else, the Footprint gives intrabar visibility to monitor what is taking place, keeping traders on top of the markets at all times.

A common pattern that occurs is shown in the screenshot of the ES from this morning. It shows a market that was balanced and rotating within a couple of points. All of a sudden near the bottom half of the range an "unbalanced force" in the form of buyers stepped in popped price higher.

The key thing to notice is:

  1. the buyers aggressively stepped in near the low of the range and
  2. almost all the trading was at the ask (offer) price. This is usually the result of a buy program being triggered and it is usually buy or sell programs that are the start of larger moves.

buying surge

 

 

 

 

Identifying Trapped Longs and Shorts

See Inside the Chart