Footprint Trading and Volume Profile Strategy: Using POC and Volume Imbalances for Entry Signals

[Romain]

Indicator A: footprint, which represents purchases and sales at each price level. There may be imbalances, i.e., differences of a certain percentage between contracts. I can also find where there are the most buyers or sellers, etc., which can lead to trading large volumes on the footprint using the POC in the candles, each of which are two minutes long. This means waiting for a high volume at a certain given moment and at a given high volume and seeing the price sweeper rise/fall to take the pullback at the top of the large volume pile. Also, the POC must be below the price for me to look for purchases and vice versa for sales. I wait for it to form a sort of grape cluster with all the volumes of the footprint candles with volumes with the POC to buy or sell before the POC.

Indicator B: Volume Profile

The volume profile is a tool that allows me to see the volume by price level. I use it generally with peaks and troughs, meaning that, for example, on the Nasdaq, I will buy in an uptrend and position myself to buy just before the volume trough because I know that this is an area that is not of interest to the market. I call this a “walk.” I also use the volume value area levels (VVH, VVAL, VPOC) a lot.

[Mod-MattZ]

Thank you, @Romain, for joining the community. What specific questions do you have for the community to help you with the strategy?

Best,
Matt Z
Optimus Futures