Footprint Charts
Footprint charts are a type of candlestick chart that provides additional information, such as trade volume and order flow, in addition to price. Common footprint charts include footprint profile, bid/ask footprint, delta footprint, and volume footprint. 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. **Volume footprint**: Unlike the volume histogram on traditional charts, the volume footprint segments volume not only by time, but also by price. These charts may also be grouped with other multi-variable charts used by advanced traders, such as level 2 quote charts or depth of market (DOM) charts.
What Are Footprint Charts?
Footprint charts are a type of candlestick chart that provides additional information, such as trade volume and order flow, in addition to price. It is multi-dimensional in nature, and can provide an investor with more information for analysis, beyond just the security's price. This tool is a unique offering that is gaining popularity among leading charting software providers.
Understanding Footprint Charts
Footprint charts provide multidimensional diagrams that let traders observe additional market variables overlaid on a candlestick chart, including information on volume, bid-ask spreads, and liquidity levels. Traders have the ability to customize footprint charts to include the individual variables that they are most interested in tracking. As with standard candlestick charts, traders can also customize the chart’s time-frame to analyze the security’s movement on a short, intermediate, or long-term basis.
Overall, footprint charts provide the benefit of analyzing multiple variables in a focused diagram. These charts may also be grouped with other multi-variable charts used by advanced traders, such as level 2 quote charts or depth of market (DOM) 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.
MarketDelta is one of the most popular software providers of footprint charts, which 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.
Footprint Chart Variations
There are several types of footprint charts that may be available through a charting provider. Some of the most common footprint charts used by traders include the following:
Related terms:
Bar Graph
A bar graph is a chart that plots data with rectangular columns representing the total amount of data for that category. read more
Bid-Ask Spread
A bid-ask spread is the amount by which the ask price exceeds the bid price for an asset in the market. read more
Candlestick
A candlestick is a type of price chart that displays the high, low, open, and closing prices of a security for a specific period and originated from Japan. read more
Forex Chart
A forex chart graphically depicts the historical behavior, across varying time frames, of the relative price movement between two currency pairs. read more
Depth of Market (DOM)
Depth of market (DOM) is a measure of the number of open buy and sell orders for a security or currency at various prices. read more
Forex Charting Software
Forex charting software helps traders analyze foreign currency pairs price trends, enabling them to make informed trading decisions. read more
Level 2
Level 2 is a trading service consisting of real-time access to the quotations of individual market makers registered in every NASDAQ listed security. read more
Line Chart
A line chart connects a series of data points with a line and is used by traders to monitor closing prices. read more
Liquidity
Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price. read more
Market Depth
Market depth is the market's ability to sustain relatively large market orders without impacting the price of the security. read more