Footprints Advanced

Overview:

As an alternative to Candlestick or Heiken Ashi candlestick chart types, TradingLite also offers Footprint based charts.

Footprint charts provide a visualisation of real-time order-flow data, on a per candlestick basis. This allows you to observe the market buy and market sell pressure, at various price points, in real-time.

The value of market buy and market sell orders are continuously totalled for each tick, and presented within the structure of each candle.

Crucially, TradingLite Footprints can be utilised to distinguish key price points of interest, where intense market buy or market sell pressure was documented, which can then be incorporated in future trading decisions.


Application within Trading:

One common use-case of Footprints (in combination with other technical analysis), is when price either increases or decreases, past a major point of support or resistance.

If one was to choose a Footprint view, in combination with an Open Interest based indicator, via the aggressiveness of market orders, it may be possible to determine whether the move below ‘support’, or above ‘resistance’, will be a protracted move of price, or possibly, an attempt to temporarily squeeze other traders out of their positions (only to reverse the price movement soon after).

By combining a real-time view of TradingLite’s Footprint charts, in addition to Open Interest based indicator, we may be able to deduce whether the intensity of either market buys or market sells, led to an increase or decrease of open positions, which may in turn influence how long-lived the trajectory of the price movement is, or perhaps, will be.

Equally, an intense buying or selling pressure adds confluence to the suggestion of a new or previously formed ‘support’ or ‘resistance’ level.

Alternatively, using the real-time view of both TradingLite’s Footprints chart and Heatmap, it may be possible to determine, whether a price level high-lighted by the TradingLite Heatmap, will act as a barrier to price, or, the intensity of the buying/selling pressure at that particular point continues unabated.

Ultimately, using TradingLite’s Footprint based charts, in addition to the suite of other TradingLite tools, may provide valuable insight, in an otherwise ‘noisy' trading environment.


Enabling Footprints:

To enable Footprints: Chart Settings > Official Indicators > Footprint Profile/Cluster


Footprint Profile

The Footprint Profile of both market buys and market sells is graphically represented by the width of the representative coloured row of market buys and market sells, at each price point, within each candle.

In other words, the greater the value of market buys or market sells, the wider the colour represented at each tick.

This can be utilised to distinguish key price points of interest, which can be incorporated in future trading decisions.

In addition to the candle's Open, High, Low & Close:

  • The left side of each footprint candle is the market sells, at each price point
  • The right side of each candle is the market buys, at each price point.

Footprint-Intro.png

Displayed as a profile, the greater the value of market buys or market sells, the wider the colour is represented at each price point.


Footprint Cluster

Whilst displaying the same data, TradingLite’s Footprint Cluster chart type could be considered a simplified version of the Footprint Profile.

Each tick value is again displayed in two columns, but as a block of equal size, with the volume of market buys and market sells having zero impact on visuals.

The benefit of this mode is to be able to view the same data, but within a larger context of other candles.

As before;

  • The left side of each footprint candle is the market sells, at each price point
  • The right side of each candle is the market buys, at each price point.

Footprint-Cluster.png


Footprint Settings

For both Footprint Profile and Footprint Cluster, there are configurable options available to suit your requirements:

  • Ticks per Row

    You can define the number of ticks per row from ‘off’ (raw tick data) up to ’50’. The higher the ‘Ticks per Row’ value the lower the definition of the Footprint. By selecting a higher value, the ticks within the value you configure will be totalled together in each row, and the row as a whole will be recalculated to reflect the new parameter.

  • Show Delta Only

    Rather than showing two columns (Sells and Buys), a delta of the two can be shown instead. By consolidating the previous 2 columns into 1, the dominant market action (buys or sells) becomes the dominant colour of the row. This may be preferred when the minutiae of the data is not as important as the overall profile and dominance .

Footprint Profile Delta:


Footprint Cluster Delta:



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