Learning to Profit from Momentum Using the Footprint Chart

It goes without saying that no matter which market you trade right now there are periods of great momentum and some large price swings. In today's "Footprint Friday" example we want to show you how to ride the wave of momentum when it arrives. Below are a couple of moves from this week (Feb 9th) in the S&P 500 emini (ES) and Crude Oil (CL). Examples like these are happening every day right now. We don't want to oversimplify and make it seem too easy, but if you have some levels you lean against and have patience in the trades you take, the Footprint can be invaluable in capturing more profits on the trades you get into.

What to Watch For

1) Consecutive green (buying) or red (selling) shown at the bottom of chart on the volume breakdown indicator.

2) Dominant order flow within the bar and repeats bar after bar. Buying momentum is shown with green volume imbalances. Selling momentum has red volume imbalances.

Click on these charts to see the larger image and study the patterns closely. Only the Footprint provides the intra-bar view of what is taking place and gives you more confidence with your trades. See inside the chart with the Footprint!

Opening move in the ES on Feb 9th.

ES Momentum 2-9 morning1
ES Momentum 2-9 morning1

Afternoon move in the ES on Feb 9th.

ES Momentum 2-9
ES Momentum 2-9

Afternoon move in CL on Feb 9th.

CL Momentum 2-9
CL Momentum 2-9
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