Kardec Trader shows how to read footprint charts by tracking where buyers and sellers are active. When sellers push price lower and passive buyers turn aggressive, price tends to continue higher. When aggressive buyers disappear, expect a slow fade.
I start understanding the volume shift and I start understanding how buyers and sellers are responding at these levels. At this level, at the first point, we get a lot of orders stopped out. Sellers try to push this lower. As sellers try to push this lower, passive buyers come in and drive price higher. So now when that happened, I'm like, okay, well are passive buyers that stepped in here and that became aggressive, are they able to stay aggressive? Is that a real movement where they're going to drive this price higher, above this level that I am currently watching? Are they present there? Now? When we got here, those buyers were not present, they weren't aggressive, they didn't show up the same way they kind of showed up here. So that put me in a very big question mark state. Will they continue staying alive here? Now if the buyers don't show up here, they're not accumulating, they're not being aggressive. Even if I don't see any passive buyers, I start going under the assumption that if they fade, we start seeing a slow fade in price.
