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Definition of 'Footprint Charts'
A group of charts that provide price and volume activity together on one data point over a specified time frame. Footprint charts, provided by MarketDelta, attempt to provide traders with increased price transparency and a clearer picture of market activity, similar to that of a level II quote or depth-of-market order book.
There are several types of Footprint charts:
- Footprint Profile - Shows traders the volume at each price through a vertical histogram, in addition to the regular Footprint bars. The Footprint Profile allows traders to see at what prices liquidity is pooling.
- Bid/Ask Footprint - Adds color to the real-time volume for easier visualization of buyers and sellers probing the bid or ask. Using the Bid/Ask Footprint, traders can see whether it is the buyers or the sellers influencing a price move.
- Delta Footprint - Displays the net difference between volume initiated by buyers and volume initiated by sellers at each price. The Delta Footprint is used by traders to help confirm that a price trend has started and will continue.
- Volume Footprint - Different from a volume histogram on traditional charts, the Volume Footprint segments volume not only by time, but by price as well. This chart is meant to help traders determine points of capitulation.
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