The mistake most traders make is treating big volume as a signal. Every contract sold was also bought. A big red bar doesn’t mean sellers won. It means a lot of business got done.
Absorption only matters with three things:
→ Location: at a level where a real decision is made (prior day low, value area low, overnight low)
→ Context: a balanced day and a strong trend day can show the same footprint and mean opposite things
→ Response: sellers stop pressing, buyers start lifting offers, price moves away. No response, no trade.
And know where you’re wrong. If price accepts below the level, the buyer is done.
Order flow tells you what’s happening. Rules decide what you do about it. I built my rules into an algorithm so execution stays consistent. Comment “ALGO” and I’ll send you the details.
#orderflow #futurestrading #nqfutures #footprint #daytrading