The Footprint Chart is an advanced order flow analysis tool that allows you to visualize the exact distribution of volume at each price level. Unlike traditional charts, the footprint reveals the activity of aggressive buyers and sellers, providing key information for decision-making in trading.
🔍 How does the Footprint Chart work?
Each candle in a footprint chart shows:
Bid/Ask Volume: Orders executed on the demand (Bid) and supply (Ask).
Imbalances: Significant differences between purchases and sales at a price level.
Point of Control (POC): Level with the highest volume transacted within the candle.
Delta: Net difference between buying and selling volume.
📊 How to use it in trading
1️⃣ Identify institutional absorptions – If a large volume is executed at a level without the price advancing, it may indicate accumulation or distribution.
2️⃣ Detect liquidity imbalances – An extreme imbalance between purchases and sales may signal a possible continuation of trend.
3️⃣ Confirm support and resistance levels – High volume points can act as key reversal or continuation zones.
4️⃣ Optimize entries and exits – Analyzing the aggressiveness of buyers and sellers helps improve accuracy in order execution.