# Signals & trade ideas

The chart engine can overlay **automated footprint signals**. They are **detection helpers**, not buy/sell recommendations. Professional use combines them with **structure, risk, and execution rules**.

Below: **what each tag means**, **typical interpretation** (discretionary), and **caveats**.

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### How signals are detected (overview)

Signals are computed from **footprint statistics per bar** (volume, delta, POC, range, wicks) and **recent history** (e.g., short lookback for divergence). Thresholds are **engine defaults**; they favor **clear** events over noisy chatter.

Toggle overlays with `footprintSetShowSignals(true)` (see Footprint Chart API).

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### ABS — Absorption

**Idea:** One side **aggresses heavily** near an extreme of the bar, but price **does not follow through** in that direction by the close, suggesting the **other side absorbed** the flow.

**Bullish example (engine logic):** Strong **ask-initiated** volume **near the low**, but candle **closes bullish** — interpreted as buyers absorbing selling pressure.

**Bearish example:** Strong **bid-initiated** volume **near the high**, but the candle **closes bearish**.

**How traders use it:** As a **warning of exhaustion** or **initiation** of a reversal **if** the structure (level, trend break) aligns. Wait for **confirmation** (next bar, break of level, failed retest).

**Caveat:** News spikes and **gaps** can produce false absorption-like prints.

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### IMB — Imbalance stack

**Idea:** **Multiple consecutive price levels** show **one-sided dominance** (ratio of bid vs ask volume exceeds a threshold for several rows in a row).

**How traders use it:**

* **With trend:** Stacked imbalances **in trend direction** → possible **continuation** pressure.
* **Into levels:** Stacks **against** a barrier may precede **break or rejection**; combine with **volume at the level** and **follow-through**.

**Caveat:** Thin markets and **single large sweep** can create stacks without lasting edge.

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### DIV — Delta divergence

**Idea:** Price **makes a new short-term extreme** (higher high or lower low over a small lookback) while **bar delta disagrees** — e.g. **new high** but **negative delta** on that bar.

**How traders use it:** As a **non-confirmation** warning — potential **weakness** in the move. Some traders scout **mean reversion** or **scale-out** of trend positions; others require **price structure** confirmation (e.g. close back inside range).

**Caveat:** Divergence can **persist** in strong trends; **timing** is hard without additional rules.

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### EXH — Exhaustion

**Idea:** **Very high volume** bar combined with a **large wick** relative to range and a **directional close** consistent with **counter-pressure** — stylized “effort vs result” mismatch.

**How traders use it:** Watch for **pause, pullback, or reversal,** especially at **range extremes** or after a **run**.

**Caveat:** High-volume **continuation** bars can also have long wicks; context matters.

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### UA — Unfinished auction

**Idea:** At the **high** of the bar, only **one side** traded at that exact extreme tick (e.g., **bids** without **asks** at the high tick, per engine rules) — suggesting the auction **did not complete** a two-sided trade at the edge (simplified narrative: “unfinished business”).

**How traders use it:** Some traders expect the **price to revisit** that extreme to “complete” the auction; others use it only as a **soft bias** with stronger tools.

**Caveat:** Tick granularity and **aggregation** change appearance; not all instruments behave the same.

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### HVN — High volume node

**Idea:** The bar’s **POC volume** is **large vs recent average POC size** — a **prominent** high-volume price within the session window used for averaging.

**How traders use it:** Mark **potential support/resistance** or **magnet** for future trade; combine with **multi-bar profiles** for stronger significance.

**Caveat:** A single bar HVN is **local**; it may mean little on **higher timeframes**.

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### Quick reference

| Tag     | Theme                                      |
| ------- | ------------------------------------------ |
| **ABS** | Absorption / effort absorbed at extreme    |
| **IMB** | Stacked one-sided imbalance through prices |
| **DIV** | Price extreme vs delta disagreement        |
| **EXH** | High volume + wick-style exhaustion cue    |
| **UA**  | Unfinished two-sided trade at bar extreme  |
| **HVN** | Standout POC volume vs recent norm         |

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### Risk and discipline

1. **Signals are not entries** — define **stop**, **target**, and **position size** outside the footprint.
2. **Correlate** with **higher timeframe** bias and **liquidity** (heatmap, obvious highs/lows).
3. **Replay and journal** — label outcomes to learn which signals matter **in your market and session**.

***

Next: Tips & best practices.


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