Footprint Friday - Aggressive Selling in Bund (FGBL)

This example occurred on Wednesday (Jan 27). For perspective, the screen shot was taken in the morning (Chicago time) and later that afternoon was an FOMC meeting. Markets were relatively quiet when all of a sudden the bund started getting sold rather aggressively. When viewing a Footprint chart, there are key pieces of information and patterns to watch for. The chart below has 2 examples.

1) The first was the "volume imbalance" pattern at the high of day (HOD).  As the market started to poke out of consolidation it was met with some heavy selling that was picked up by the volume imbalance Footprint. You can see this by the red volume imbalance Footprint.

The key thing to realize is that instead of buying coming into the market, SELLING showed up! The market was telling us something, even though the real selling hadn't started. The failed attempt to move higher, combined with the aggressive selling at HOD was the "ah-ha" moment.

2) The 2nd Footprint example was the aggressive selling that entered. For many traders this break lower might have been a surprise, but if you were looking at a Footprint and noticed what we mentioned in #1 you were more prepared to take advantage. Moreover, the market gave everyone another opportunity of the same trade when it pulled back.

bunds
bunds

Tom Dante is a customer and very active bund trader and made note of this move in a few tweets he made in real time. Thanks Tom!

@marketdelta to be fair if I wasn't using your software I wouldn't have even seen it coming :) just need to act faster now!

— Tom Dante (@Trader_Dante) January 27, 2016

Footprint Friday - Using Footprint Filters

Identifying "Thin Spots" and Executing With the Footprint Chart

Identifying "Thin Spots" and Executing With the Footprint Chart