What are Footprint Charts
Footprint charts are a multi-dimensional type of candlestick chart that can provide an investor with additional variables for technical analysis beyond just price. They are a unique offering available from MarketDelta as well as some other charting software providers.
BREAKING DOWN Footprint Charts
Footprint charts provide multidimensional diagrams that allow a trader to observe additional variables built out from a candlestick chart. Built from the concept of candlestick charting, footprint charts can include information on volume, bid-ask spreads, liquidity levels and more. Traders have the ability to customize footprint charts to include variables they are interested in following. Similar to standard candlestick charts, traders can also customize the chart’s timeframe to analyze the security’s movement on a short, intermediate or long-term basis.
Overall, the footprint chart provides the benefit of analyzing multiple variables in a focused diagram. Footprint charts may also be grouped with other multi-variable charts used by advanced traders such as level II quote charts or depth of market charts. Many advanced charting providers offer multi-variable quoting systems that can be purchased on a subscription basis as an add-on to standard software services.
Footprint Chart Variations
There are several types of footprint charts that may be available through a charting provider. Traders also have the option of building their own footprint charts. Some of the most common footprint charts used by traders include the following:
- 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.
MarketDelta is one of the most popular software providers for footprint charts. Footprint charts are available through monthly subscriptions. The MarketDelta platform connects with many of the top brokerage companies to allow for trade automation. MarketDelta also offers many different customizable data feeds for an additional fee.