How A Market Can Rally On Aggressive Selling In Order Flow Footprint Chart Trading Strategy

www.orderflows.com/oft6.html
Do you every wonder why a market rallies on aggressive selling? Well in this video I explain how the aggressive selling is met by strong passive buying which results in the negative delta and selling imbalances.
When there is aggressive selling but it is met with strong passive liquidity in the market, the market won't go down. In fact it will probably go up instead because traders are absorbing the aggressive selling taking place. Once the aggressive selling ends, there is no more downward pressure on the market and the market will most likely rally.

Пікірлер: 48

  • @bobbyd3701
    @bobbyd37019 ай бұрын

    Mike I’ve never learned as much from anyone in 20 years. I just purchased your software and super excited 🎉

  • @Ra-jr6nf
    @Ra-jr6nf Жыл бұрын

    Thank you for explaining this concept, much appreciated 🙏🏼

  • @henningbeyerable
    @henningbeyerable Жыл бұрын

    Hi Mike thanks for your Information. What are the reasons for an passiv buying/selling. For me I have only the reason of an big player open/close the position.But every delta divergence must be balanced. Could you please tell us more about the parent context of this behaviour ? Then I can classify it better. Thanks

  • @ingenidet
    @ingenidet Жыл бұрын

    thanks mike for your explanation yesterday now i anderstand why market can get an other mouvement down 👍🏾👍🏾👍🏾

  • @thomass.7872
    @thomass.78729 ай бұрын

    What are these little blue/red arrows below/above the candles and the numbers too them like 85,36 or 33,19 in blue and 92,6 or 0,65 in red above below candles??

  • @ipaulmagu
    @ipaulmagu Жыл бұрын

    Great topic about inventory moving up, or chasing. Perhaps a market map could have put a spotlight on the passive orders moving up. Also, at the end of the 5min bar you are showing, a big buyer could have shown up, for example, the last 5 seconds, just enough to push prices up before the closing of the bar. Enjoyed your video, as always.

  • @kjfhjhu
    @kjfhjhu10 ай бұрын

    Thank you so much for this video, because I noticed I was reading the footprint chart in a bit of a wrong way, but now it is much much clearer. Again thank you very much.

  • @orderflows

    @orderflows

    10 ай бұрын

    You're very welcome!

  • @cottondog3607
    @cottondog3607 Жыл бұрын

    Mike, I'm glad to see you reading and responding to questions. Much appreciated. This one was a tricky one to wrap my head around, I must admit. Maybe some live replays would help to see how the bid and ask volume evolved would help.

  • @biglad3368

    @biglad3368

    Жыл бұрын

    Scam

  • @TheNelster72

    @TheNelster72

    9 ай бұрын

    ​@@biglad3368I don't see him making any promises. He can't make anyone a decent trader.

  • @EGTGUY
    @EGTGUY Жыл бұрын

    Today I was watching MES 03/23, and I was carefully looking at the deltas under my footprint chart, and I made an error looking at lots of -deltas thinking the direction should surely turn downward. So I placed a Sell limit order, and lo and behold, the market defied all the odds, and went higher. Luckily I'm on a demo account, but nonetheless, I couldn't see why this had happened. I was thinking "why won't someone explain this madness??" Luckily you kinda have, I still not 100% confident I get it, will have to watch this video a few more times methinks. 👍

  • @cheyenne99
    @cheyenne99 Жыл бұрын

    Wouldn't this mean a demand zone has been tapped? A pool of limit buy orders? Also, is this typically what is happening when delta diverges from the price or can there be others reasons it would diverge?

  • @CharlesRaimbault
    @CharlesRaimbault11 ай бұрын

    when you buy your software would it show aggressive/passive selling area

  • @Maike833
    @Maike833 Жыл бұрын

    Mike is your software easy to install??

  • @biglad3368

    @biglad3368

    Жыл бұрын

    Scam

  • @BrigataUPG
    @BrigataUPG Жыл бұрын

    almost impossible to predict price movement by using order flow. For a profitable trading stick to the normal combination of indicators as more reliable and easy to identify trends and set TP and SL

  • @Rkthelegend2001
    @Rkthelegend2001 Жыл бұрын

    aggressive selllers selling the bid and passive seller's offering their orders at offering side......!! But buyers buying everything.....✌🏻 even bid price and offer price......that's why market moving up........ # Passive buyer's brought the bid # Aggressive buyers brought at offer price by passive seller.... It's a move of combination of Passive buyers and aggressive buyers

  • @jtcooper8184
    @jtcooper8184 Жыл бұрын

    I understand what you are saying. The price goes up because there are passive buyers. But I still don't understand. If there are many passive buyers, then it should be reflected to the numbers, and it should have positive delta. I still don't get why the price goes up when the delta is negative after watching this entire video.

  • @jtcooper8184

    @jtcooper8184

    Жыл бұрын

    @Carter Hughes Oh, they are in the number on the bid side. With that, I can understand the price goes up. I wish there was a way to separate aggressive buyers and passive buyers, way to show them separately. I mean, if the price goes up while negative delta, I guess I just assume there are passive buyers pushing the price go up hindsight. Basically I don't know how to use this information as my trading edge.

  • @matata127

    @matata127

    Жыл бұрын

    If it was like that, then everyone would be trading i.e trading would really easy

  • @kenertriismaa6859

    @kenertriismaa6859

    Жыл бұрын

    @@jtcooper8184 agressive buyers buy the offer, and passive buyers bid the market

  • @jtcooper8184

    @jtcooper8184

    Жыл бұрын

    @@kenertriismaa6859 Thank you, perfect explanation, easy to understand.

  • @knutseeger2690

    @knutseeger2690

    Жыл бұрын

    @@jtcooper8184 on the left side of the footprint chart there are active sellers and passive buyers. On the right side of the FPC there are active buyers and passive sellers. Passive Buyers and sellers are like rod fishermen, they have to wait until "fish" are coming and sell into bid/ buy into ask. Only active buyers and sellers can move the market price (they are actively hunting). In the FPC you see only the active traders. if there is a big number on one price, it means that there was a big passive limit order..

  • @kall4less
    @kall4less Жыл бұрын

    None of this hindsight evaluation can clearly inform a live trader what's going to happen in the near-term to make profitable trades. As soon as market participants change, the market changes. At some point big time sellers or buyers can completely reverse the market and take it down or up not so far, or further, or further than that. Or take the market not so far one way, then further the other way, then even further back again the other way, then consolidate, then have a huge long directional move.

  • @JoseMartinez-mm4om
    @JoseMartinez-mm4om Жыл бұрын

    Quit the adds man lower them down i get 7 every video