Advanced Footprint Analysis

1. ABSORPTION = BEST ENTRY SIGNALS

When BTC hits support and shows bullish absorption:

You know big money is buying
Price won't fall further (supply absorbed)
Risk/reward is optimal (tight stop below absorption)
Win rate on these setups is 70-80%



2. EXHAUSTION = REVERSAL TIMING

Catches exact moment selling/buying pressure is exhausted
No more guessing "is the dip over?"
Volume confirms the reversal

3. IMBALANCES = CONTINUATION TRADES

Stacked imbalances show trend strength
Enter pullbacks in strong trends
Avoid counter-trend trades when imbalance is strong

4. DELTA DIVERGENCE = EARLY WARNING

Cumulative delta rising but price flat = accumulation (buy setup)
Cumulative delta falling but price rising = distribution (sell setup)
This divergence appears BEFORE price moves

5. FILTERS OUT NOISE

Crypto has tons of fake volume and wash trading
By requiring volume to be significantly above average (2x, 3x), you ignore the noise
Only trade when institutions are active

6. WORKS ON ALL CRYPTO PAIRS

BTC, ETH, SOL - same patterns
Especially powerful on perpetual futures (more volume data)


PRACTICAL 5M CRYPTO ALGO STRATEGY:
LONG ENTRY:

Wait for bullish absorption OR bullish exhaustion
Confirm with positive stacked imbalances (3 bars)
Enter when price breaks above absorption high
Stop below absorption low
Target: 2-3x risk or next resistance

SHORT ENTRY:

Wait for bearish absorption OR bearish exhaustion
Confirm with negative stacked imbalances
Enter when price breaks below absorption low
Stop above absorption high
Target: 2-3x risk or next support

FILTER:

Only trade in direction of cumulative delta trend
Avoid when volume is below average (no institutional activity)