Footprint® Charts
Pre-trade price transparency was revolutionized by Level II quotes screens and the Depth of Market (DOM) order book. The Footprint® chart is revolutionizing post-trade price transparency by displaying price AND volume activity on one data point and over any time frame you specify.
Footprint - What it is
A Footprint® is an individual price painted on the chart with a unique color that contains volume or some other market statistic. Stacking Footprints together creates bars, similar to what any candlestick or bar chart would present. The primary difference, and thus advantage of the Footprint®, is it shows each individual price within a bar AND displays value added information such as volume, buy/sell pressure, and other valuable statistics. You can even create custom indicators based on this information!
Footprint - Benefit
Footprints® result in providing increased price transparency and a clearer, more informed picture of what is happening which leads to better judgement and hopefully a much better P&L. Algorithmic traders will benefit from a new paradigm in approaching market activity from which to develop and test ideas.
You will clearly see where the market is establishing value and what type of participant, buyer or seller, is trying to influence price. The confidence the Footprint® provides traders is unprecedented and only grows as you become more familiar with how it reflects the market. That is part of the beauty of the Footprint® - the purity of it - it simply reflects what is taking place in the market between buyers and sellers. The truest representation of how an auction market works...PERIOD.
Inside a Footprint® are individual pieces of market information. Some of the most popular Footprints® types are Bid/Ask Footprint®, Volume Footprint, Delta Footprint® and Footprint® Profile.
Learning Opportunity! - To learn more about the Footprints® click below. It is a 18 minute high resolution recording describing in much more detail the functionality, benefits, and a few suggested ways to apply it.
