This lesson is a deep dive into cluster analysis. π It explains how to interpret the distribution of aggressive buying (Ask) and selling (Bid) within a single candlestick.
The webinar teaches you how to calculate the Delta to gauge market pressure and covers practical scenarios, such as spotting a positive delta combined with a falling price, which exposes trapped buyers or absorption by passive sellers.
You will learn how to use these footprint patterns for both riding a trend continuation and catching major reversals.
Key takeaway
- Footprint Chart: A cluster chart revealing the exact volume of contracts bought and sold by aggressive participants at each specific price tick inside a candlestick.
- Delta: The mathematical difference between aggressive buyers (Ask) and aggressive sellers (Bid) inside a cluster. A bright green delta indicates intense buyer aggression, while a bright red delta shows intense seller aggression.
- Absorption: A scenario where aggressive market orders hit a massive wall of passive limit orders, causing the price to stall completely despite heavy trading volume.
- Shift of Control: A visual transition in the footprint from dominant red clusters to bright green ones (or vice versa), acting as an early warning sign that market power has transferred to the opposite side."
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