So what are footprint charts? Well, most of us are probably trading on MT4 or MT5. Therefore traditional charting styles such as line, bar & candlesticks are not new to most.
Now, all the above charting methods will not disclose the most important piece of information. I mentioned them in my previous post. They are VOLUME, DELTA and PRICE.
Line, bar and candlesticks charts are very limited in the information they provide or can provide. In fact, they do a very good job of showing a picture of PRICE only. That’s what they were created to do anyway. To just show price.
Footprint charts on the other hand show DELTA, VOLUME and PRICE. One of my trading edge is when I am able to analyse price action by watching delta (directional force behind price) and the underlying volume.
We have different types of footprint charts that one can use to analyse the orderflow of any given instrument. I will try list some of the most commonly used. My favorite is the Bid X Ask footprint. I wont say why for now 😉 later ..
You can also view the price action from a Delta point of view.
and volume as well ….
and the list goes on and on and on. It just depends on which orderflow software you are using. Orderflow softwares are many and this will be a topic for another day. The software you decide to use depends on many factors such as your budget and other finer details.
I will give my top 5 softwares and shed some light on why I prefer them. Just for the record, I’m not affiliated to the said vendors in any way so that post will not in any way be a solicitation to buy the softwares. Always do your market research before making any online purchases.
That’s all for today. I have to take a break now from today’s day trading.
Happy trading, stay sharp and be very happy always 🙂