The MarketDelta Blog

We often receive calls or emails from customers and those investigating the Footprint about the best way to interpret the Footprint chart. While interpretation is a slippery slope, I wanted to record a video that shows just one approach of how this valuable information presented on a Footprint chart can be interpreted.

As you will see during the video, I used the Playback feature built into MarketDelta. You can learn how to use this here. The playback feature is an extremely useful tool for learning how to read and interpret the Footprint chart because you can go back and see how a move, pullback, reversal, etc. developed. If nothing else, this will greatly aid in your understanding of how markets operate and trade.

The key things to remember from the video are:
1) Focus on using the Footprint at known reference points. This could be the high of day, low of day, low of range, high of range, and key reference levels you use. Just like many traders should not be trading in the middle of a range bound market because of randomness, the same would apply to the Footprint chart. Reference it WHEN YOU NEED IT. This means when evaluating a trading opportunities.
2) Once you are in a trade, use the Footprint to monitor your position. Look for confirmation on the Footprint and the volume breakdown indicator.