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Footprint Charts - The Complete Guide for Order Flow Traders

• By OrderflowHQ Team
Footprint Charts - The Complete Guide for Order Flow Traders

Footprint charts are one of the most powerful tools for order flow analysis. They show you exactly what happened at each price level, giving you insights that traditional charts can’t provide.

What are Footprint Charts?

Footprint charts display the volume at each price level in a candlestick, showing:

  • Bid volume: Volume traded at the bid (sellers hitting the bid)
  • Ask volume: Volume traded at the ask (buyers paying the ask)
  • Delta: The difference between bid and ask volume
  • Total volume: Combined volume at each price level

Understanding the Footprint

Basic Structure

Each price level shows:

Price: 4200
Bid: 1,234
Ask: 2,345
Delta: +1,111
Total: 3,579
  • Bid volume: Sellers were active
  • Ask volume: Buyers were active
  • Delta: Net buying pressure (+ means more buying)
  • Total: Total volume at this price

Reading Footprint Patterns

Absorption

When large volume trades but price doesn’t move:

  • Large volume, no price change: Strong absorption
  • Buyers absorbing: Bullish signal
  • Sellers absorbing: Bearish signal

Imbalance

When one side dominates:

  • Strong bid volume: Buyers in control
  • Strong ask volume: Sellers in control
  • Extreme imbalance: Potential reversal

Exhaustion

When volume spikes at extremes:

  • High volume at highs: Potential top
  • High volume at lows: Potential bottom
  • Volume decreasing: Momentum fading

Advanced Footprint Strategies

1. The POC (Point of Control)

The POC is the price level with the most volume:

  • Support/Resistance: Often acts as key level
  • Value area: Price tends to return here
  • Breakout level: Breaking POC is significant

2. The Value Area

The range where most volume traded:

  • Upper value: Resistance area
  • Lower value: Support area
  • Outside value area: Extreme moves

3. The Delta Divergence

When delta and price diverge:

  • Price up, delta down: Weak move
  • Price down, delta up: Weak move
  • Divergence: Potential reversal

Using Footprints for Entry and Exit

Entry Signals

Look for:

  1. Strong delta at support: Bullish entry
  2. Absorption at resistance: Bearish entry
  3. Imbalance in your favor: High probability
  4. POC breakout: Momentum entry

Exit Signals

Watch for:

  1. Opposite delta: Reversal signal
  2. Decreasing volume: Momentum fading
  3. Absorption at extremes: Exhaustion
  4. Delta divergence: Trend weakening

Footprint Chart Types

Bid/Ask Footprint

Shows bid and ask volume separately:

  • Green: More ask volume (buying)
  • Red: More bid volume (selling)
  • Neutral: Balanced volume

Delta Footprint

Shows the net buying/selling pressure:

  • Green: Positive delta (buying)
  • Red: Negative delta (selling)
  • Intensity: Strength of the delta

Volume Profile

Shows total volume at each price:

  • POC: Highest volume point
  • Value area: 70% of volume range
  • Low volume nodes: Weak areas

Combining Footprints with Other Tools

With Time and Sales

Footprints show the “what”, Time and Sales shows the “when”:

  • Footprint shows where: Price levels
  • T&S shows when: Timing
  • Together: Complete picture

With Market Depth

Footprints show what happened, depth shows what’s waiting:

  • Footprint: Historical activity
  • Depth: Current orders
  • Combined: Predict future moves

Common Footprint Patterns

The Long Tail

Long wicks with low volume:

  • Rejection: Strong support/resistance
  • Reversal signal: Price rejected
  • High probability: Strong pattern

The High Volume Node

Large volume at one price:

  • Magnet: Price returns here
  • Support/Resistance: Key level
  • Breakout: Significant move

The Low Volume Node

Little volume at a price:

  • Weak area: Price moves through quickly
  • Gap: Often leaves a gap
  • Target: Price moves to next node

Tools for Footprint Analysis

Professional footprint analysis requires:

  • Real-time footprint charts
  • Customizable displays
  • Historical replay
  • Multiple timeframe analysis

Vtrender provides advanced footprint chart capabilities for professional order flow analysis.

Best Practices

  1. Start simple: Master basic patterns first
  2. Use multiple timeframes: See the full picture
  3. Combine with other tools: Don’t rely on footprints alone
  4. Practice regularly: Improve with experience

Common Mistakes

1. Overcomplicating

Don’t try to read every detail. Focus on:

  • Major imbalances
  • Significant absorption
  • Clear patterns

2. Ignoring Context

Consider:

  • Overall trend
  • Time of day
  • Market conditions
  • News events

3. Not Backtesting

Test your strategies:

  • Use historical data
  • Track your results
  • Refine your approach

Conclusion

Footprint charts are a powerful tool for order flow analysis. By learning to read footprints, you can gain insights into market dynamics that aren’t visible on traditional charts.

Start using Vtrender’s professional footprint tools to take your order flow analysis to the next level.

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