This footprint trading session looks at how to interpret the strength and significance of a market high or low, and thereby its probability of being held or taken out in the future. This is one of the advantages of trading with the footprint chart. While a traditional candlestick chart will merely show you the market's highs and lows, it doesn't offer you any insight into how the high or low was formed by the interaction between participants.
An auctioned low is formed when a combination of sellers take profits and buyers simultaneous begin buying the market. This is a clear switch over from net selling to net buying. On the other hand, an exhaustion extreme, such as a low, shows no aggression from buyers to bid the market up, and instead sits in a range for a while before moving higher.
As a rule of thumb, exhaustion highs and lows tend to be "bad" and are taken out in the future, while auctioned highs and lows have higher probabilities of holding for a period of time. The illustrated examples are taken from the crude oil market on 16 July 2018.
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