Hi everyone, I have a question related to trading.
I’m currently trading crypto and focusing specifically on the SUI/USDT pair. I’m analyzing price movements on the 1-hour (1H) timeframe, while my key support and resistance levels are derived from the 1-day (1D) timeframe (as shown in the image).
I’m also using a footprint chart on the 1H timeframe. Here’s where my question comes in:
On the chart, you’ll see a large grey area representing the 1D timeframe zone, and within that, I’ve marked two smaller gray zones—labeled 1H_TF_footprint_1 and 1H_TF_footprint_2. These were created based on footprint chart analysis.
For 1H_TF_footprint_1, I based it on 2 million contracts, high volume, and a noticeable imbalance. I expected the price to reach that level and then drop—but that didn’t happen.
Then I created 1H_TF_footprint_2, using this criteria: 1 million contracts, high delta, and strong volume. This zone actually also was not respected.
Later on, I observed that price eventually moved up and it seems the price reacted to a big red candle with 2 million contracts, high volume, and a large negative delta, after which the price began to fall (as visible in the image).
My questions are:
Why weren’t both of the small grey zones respected?
Why it seems the price reacted to such a big red candle?
Is my analysis flawed? If those zones are not valid, could you help me understand why?
What should I do in this kind of situation? (Note: I didn’t enter any trades.)
Thanks in advance