Market Exhaustion - My Favorite Easiest Trade Setup In Order Flow Footprint Using Orderflows Trader

One of my favorite ways to use order flow is to identify market exhaustion which tells me when a move can most likely end because the last seller sold or the last buyer bought. It is really simple to see in the footprint chart, there are no fancy calculations that need to be done. Just simple observation.

When the market is trending strongly in one direction, it often reaches a point where there are no more buyers or sellers left to continue pushing the price higher or lower. This is known as market exhaustion. By observing the order flow in the footprint chart, I can easily spot this point and anticipate a potential reversal or a pause in the ongoing trend.

For example, if I see a series of aggressive buying orders pushing the price higher, but suddenly notice a lack of aggressive buying orders and a surge in selling orders, this indicates that the last buyer has likely entered the market. With no more buyers left to push the price higher, a reversal or a consolidation phase could be imminent. This information allows me to make informed trading decisions and potentially profit from the market turning in the opposite direction.

Similarly, if I notice a strong downtrend with a flurry of selling orders, but suddenly see a decrease in aggressive selling and a surge in buying orders, this signals that the last seller may have sold. With no more sellers left to drive the price lower, a potential reversal or a consolidation phase may be on the horizon. Again, by understanding this market exhaustion, I can make strategic trading decisions to capitalize on the market's potential shift.

The beauty of using order flow to identify market exhaustion is its simplicity. It doesn't require complex mathematical calculations or indicators. It relies on basic observation and understanding the dynamics of buyers and sellers in the market. By keeping a close eye on the footprint chart and interpreting the order flow correctly, I can gain valuable insights into the market's potential turning points and make more successful trading decisions.

[PatrimonyCapital]

These videos hold immense value . Thank you for sharing your valuable experience through these insightful videos . Refreshing to say the least amongst plenty of get rich quick channels publishing generic content . Currently shuffling through most of your content . Thank you for sharing, very appreciative .

[Beaumortier]

Great visualisation of exhaustion prints, brilliant explanation and examples, thank you. Keep up the good work, I am inspired by you and your explanations 😊

[PatrimonyCapital]

These lessons hold immense value . Thank you for sharing valuable experience through such insightful content . Refreshing to say the least amongst plenty of get rich quick generic trading channels . Currently shuffling through most of your channel's content . Thanks again, very appreciative .

[stephenmack]

Really enjoying learning about orderflows. Please keep up the good work.

[freshdog]

Can you do a video on how ratios are used in order flow

[FIREFUTURES]

Thanks Mike, every video has something of value! Would like to see a video surrounding keeping yourself in a trade through pullbacks and how you determine weather to exit or hold anticipating another leg. Thanks in advance

[Will_Ramb]

Exhaustion prints, my favorite too! They probably have a 90% success win rate at minimum!!! Gotta love em!

[chokichokinson]

Thnak you for your lessons, blessings to you

[LP-vcck]

would it be a reasonable strategy to trade the "zero print"? or does these moves get quickly absorbed?

[hankday]

Thank you so much! great video! please do more on ES eminis!

[robertovergara]

Thanks again for the execellent videos you're posting, it really has helped my trading. I just wanted to ask you why you don't use trailing stops, I have been trying various trailing stops, in various market conditions (on the ES). In the european session I use 3 or 4 ticks, when the trade is in positive territory and depending on the volatility after the cash open I use 4 or 5 -6 ticks. It does not always work out but when the trailing stop is wide enough i can ride a fair bit along. The reversal scalper is extremely helpful on an 8 range chart on the ES. Thanks again for all your help.

[peterchahine]

I've been learning every day from your videos. What is your experience with ETF stocks using order flow? Most stocks like TSLA, GOOG, and NFLX are going straight up on negative delta.

[barajona]

Do u prefer Range chart or Time chart?

[RickyLo-twwx]

Does the zero volume need to be printed on the bid or offer column to signify a trend reversal?

[SuperGenius]

i would like to make a video where you show how to have same footprint chart like yours this Exhaustion?

[allensouth]

another priceless video, I'm still a new trader and learning, but this is where I am have been sharpening my edge is exhaustions and looking for stuck traders at the tops and bottoms of the highs and lows. your software is great and I use the similar indicators on a different platform, I just don't use ninja trader but I highlight imbalances and triple imbalance print as well, deltas and a few other things you do to track and keep up with order flow, Do you have a live trading room like where you talk about the market in real time?

[andmmgl]

What determines low volume in terms of numbers? 3 or 4 contracts are obviously low and whats the range of low volume? Boundaries?

[chokichokinson]

Does this setup help us potentially identify where the stop hunt ends?

[loinguyen]

Thanks, but please show me how to apply your methor to scaping ? I'm using 1 minute chart,

[Gmoney]

when there a finished auction why does the price contine to move in that direction if there is an absemse of buyers / sellers