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What is the Difference Between Volume Footprint Chart and DOM?

• By OrderflowHQ Team
What is the Difference Between Volume Footprint Chart and DOM?

Footprint charts and the Depth of Market (DOM) are both essential order flow tools, but they serve different purposes and show different information. Understanding the difference helps you use each tool effectively.

What is a Footprint Chart?

A footprint chart shows historical volume data at each price level within a candlestick or bar. It displays:

  • Bid volume: Volume traded at the bid (sellers)
  • Ask volume: Volume traded at the ask (buyers)
  • Delta: Net buying/selling pressure
  • Total volume: Combined volume at each price

Key Characteristics

  • Historical: Shows what already happened
  • Price-based: Organized by price levels
  • Volume analysis: Focuses on volume distribution
  • Pattern recognition: Shows imbalances and absorption

What is the DOM (Depth of Market)?

The DOM, also called Level 2 or Market Depth, shows current pending orders in the order book. It displays:

  • Bid orders: Current buy orders waiting to be filled
  • Ask orders: Current sell orders waiting to be filled
  • Order sizes: How many contracts at each price
  • Real-time updates: Changes as orders are placed/cancelled

Key Characteristics

  • Real-time: Shows what’s happening now
  • Order-based: Organized by pending orders
  • Liquidity analysis: Focuses on available liquidity
  • Execution planning: Helps with order placement

Key Differences

1. Time Perspective

Footprint Chart:

  • Shows past trading activity
  • Historical data within completed bars
  • What already happened

DOM:

  • Shows current pending orders
  • Real-time order book
  • What might happen

2. Information Type

Footprint Chart:

  • Executed volume: Trades that already occurred
  • Price levels: Where volume traded
  • Buying vs selling: Who was more active

DOM:

  • Pending orders: Orders waiting to be filled
  • Price levels: Where orders are waiting
  • Liquidity: Available volume at each price

3. Purpose

Footprint Chart:

  • Analysis: Understand what happened
  • Patterns: Identify imbalances and absorption
  • Signals: Find trading opportunities

DOM:

  • Execution: Place orders effectively
  • Liquidity: See where orders are waiting
  • Timing: Enter/exit at optimal prices

When to Use Each Tool

Use Footprint Charts For:

  1. Analyzing Past Activity

    • What happened at key price levels
    • Where volume was concentrated
    • Who was more active (buyers/sellers)

  2. Identifying Patterns

    • Imbalances
    • Absorption
    • Exhaustion
    • Delta divergences

  3. Finding Trading Signals

    • Entry points
    • Exit points
    • Support/resistance levels
    • Reversal signals

Use DOM For:

  1. Real-Time Execution

    • Where to place orders
    • Available liquidity
    • Best execution prices
    • Order book dynamics

  2. Seeing Current Liquidity

    • Large orders waiting
    • Support/resistance forming
    • Potential stop runs
    • Iceberg orders

  3. Timing Entries/Exits

    • Optimal entry prices
    • Exit opportunities
    • Avoiding slippage
    • Reading order flow in real-time

How They Work Together

Complementary Tools

Footprint charts and DOM work best together:

  1. Footprint Shows History

    • Where volume traded
    • Key price levels
    • Past imbalances

  2. DOM Shows Present

    • Current order book
    • Available liquidity
    • Real-time activity

  3. Together They Predict Future

    • Historical patterns + current liquidity = better predictions
    • Past support/resistance + current orders = key levels
    • Historical imbalances + current order flow = trading signals

Example Workflow

  1. Use Footprint to Identify Key Level

    • Find POC or high volume node
    • Identify past support/resistance
    • See where imbalances occurred

  2. Use DOM to See Current Activity

    • Check if orders are building at that level
    • See if liquidity is present
    • Watch for large orders

  3. Combine for Trading Decision

    • Historical level + current liquidity = high probability trade
    • Past pattern + current order flow = confirmation
    • Historical imbalance + current absorption = signal

Visual Comparison

Footprint Chart Display

Price: 4202
Bid: 1,234  ← Historical volume at bid
Ask: 2,345  ← Historical volume at ask
Delta: +1,111
Total: 3,579

Shows what already happened at this price.

DOM Display

Ask: 4203  [500]  ← Current sell orders waiting
Ask: 4202  [1,200]
Ask: 4201  [800]
-----------
Bid: 4200  [600]  ← Current buy orders waiting
Bid: 4199  [900]
Bid: 4198  [400]

Shows current pending orders.

Best Practices

1. Use Both Tools

Don’t rely on just one. Combine:

  • Footprint for analysis
  • DOM for execution
  • Both for confirmation

2. Understand the Difference

Remember:

  • Footprint = past
  • DOM = present
  • Together = future

3. Match Your Trading Style

  • Scalping: DOM more important (real-time)
  • Day trading: Both equally important
  • Swing trading: Footprint more important (patterns)

Tools for Footprint and DOM Analysis

Professional order flow trading requires:

  • Real-time footprint charts
  • Live DOM/Level 2 data
  • Historical replay
  • Customizable displays

Vtrender provides both footprint charts and DOM tools for comprehensive order flow analysis.

Common Mistakes

1. Using Only One Tool

Both tools provide different information:

  • Footprint shows history
  • DOM shows present
  • Need both for complete picture

2. Confusing Their Purpose

Remember:

  • Footprint = analysis tool
  • DOM = execution tool
  • Use each for its purpose

3. Not Combining Them

They work best together:

  • Footprint identifies levels
  • DOM shows current activity
  • Together = better decisions

Conclusion

Footprint charts and DOM are both essential order flow tools, but they serve different purposes. Footprint charts show historical volume data for analysis, while DOM shows current pending orders for execution. Using both together gives you a complete picture of market dynamics.

Start using Vtrender’s comprehensive order flow tools to access both footprint charts and DOM for professional order flow trading.

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