Traditional Japanese candlestick patterns like hammers and engulfing bars fail when traded blindly. Combining price action with underlying volume delta transforms standard patterns into high-probability execution signals.
Key Takeaways & Market Highlights
- How to identify real rejection wicks versus simple liquidity collection.
- Using Footprint charts to identify trapped market participants.
- Volume Profile Point of Control (POC) as high-probability mean-reversion targets.
- Developing a repeatable pre-market order flow checklist.
Absorption at Key Support and Resistance
When aggressive market sellers fail to push price lower despite massive volume, passive institutional limit buyers are absorbing the supply. Recognizing this footprint anomaly gives traders an early entry long before momentum indicators trigger.
#Price Action#Order Flow#Candlesticks#Forex Strategies
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