Footprint Charts: Order Flow Analysis

Footprint charts provide the most granular view of market activity available to traders. They display the actual volume traded at each price within a candle, broken down by buyers and sellers. This order flow analysis reveals institutional activity that traditional charts hide. Here is how to read and trade footprint charts.

What Are Footprint Charts?

Footprint charts (also called cluster charts or bid/ask charts) show volume data inside each candle:

• Volume at each price level within the candle
• Bid volume: Trades executed at the bid price (selling pressure)
• Ask volume: Trades executed at the ask price (buying pressure)
• Delta: The difference between bid and ask volume

Anatomy of a Footprint Candle

Each price level within a candle shows:

• Left side: Bid volume (contracts traded at bid)
• Right side: Ask volume (contracts traded at ask)
• Color coding: Green for buying dominance, red for selling dominance

Key Footprint Chart Concepts

Delta

Delta measures buying vs. selling pressure.

• Positive delta: More aggressive buying (ask volume > bid volume)
• Negative delta: More aggressive selling (bid volume > ask volume)
• Cumulative delta: Running total of delta over time

Imbalances

Imbalances occur when one side significantly outweighs the other.

• Typically defined as 200-400% more volume on one side
• Stacked imbalances create strong support/resistance
• Show where institutions are active

Point of Control (POC)

The price level with the highest total volume in the candle.

• Shows where most activity occurred
• Acts as a magnet for price
• Important reference level

Footprint Chart Patterns

Buying Climax

Heavy buying volume at the top of a candle, followed by reversal.

• Large positive delta at high
• Shows exhaustion of buyers
• Often precedes a pullback or reversal

Selling Climax

Heavy selling volume at the bottom of a candle, followed by reversal.

• Large negative delta at low
• Shows exhaustion of sellers
• Often precedes a bounce or reversal

Absorption

Large orders absorbing aggressive traders without moving price.

• High volume but minimal price movement
• Indicates large limit orders in the market
• Often precedes reversals

Stacked Imbalances

Multiple consecutive price levels showing imbalances in the same direction.

• Bullish stacked imbalances = strong buying interest
• Bearish stacked imbalances = strong selling interest
• Create support/resistance zones

Trading Strategies with Footprint Charts

Strategy 1: Imbalance Trading

Trade in the direction of stacked imbalances.

• Identify stacked buying imbalances at a level
• Wait for price to pull back to that level
• Enter long when imbalance zone holds
• Opposite for selling imbalances

Strategy 2: Absorption Reversal

Trade reversals when absorption is identified.

• Watch for high volume with minimal price movement
• This shows large orders absorbing aggression
• Enter when price reverses from the absorption zone

Strategy 3: Delta Divergence

Trade divergences between price and delta.

• Price makes new high but delta is weaker = bearish divergence
• Price makes new low but delta is less negative = bullish divergence
• Divergences often precede reversals

Strategy 4: POC Migration

Track how the POC moves from candle to candle.

• Rising POC suggests bullish momentum
• Falling POC suggests bearish momentum
• Trade in the direction of POC migration

Chart Analysis: Reading Order Flow

When analyzing footprint charts:

• Look at the overall delta of the candle first
• Identify where the high volume traded
• Check for imbalances at key levels
• Note any absorption patterns
• Compare footprint data to price action
• Watch how the footprint develops in real-time

Types of Footprint Displays

Bid x Ask Footprint

The standard display showing bid and ask volume.

Delta Footprint

Shows only the delta at each price level.

Volume Footprint

Shows total volume at each price (bid + ask combined).

Imbalance Footprint

Highlights only the imbalance levels, filtering out noise.

Footprint Charts vs. Other Tools

• vs. Volume Profile: Footprint shows real-time flow, Profile shows historical distribution
• vs. Time and Sales: Footprint aggregates the tape into visual format
• vs. Level 2: Footprint shows executed orders, Level 2 shows pending orders

Common Footprint Mistakes

• Overcomplicating: Focus on key concepts, not every detail
• Ignoring context: Footprint data means more at key levels
• Trading every signal: Wait for high-probability setups
• Wrong timeframe: Use footprint on timeframes that match your style

Best Practices for Footprint Trading

• Start with one concept (like imbalances) and master it
• Use footprint at key support/resistance levels
• Combine with traditional price action analysis
• Practice reading footprint in real-time markets
• Keep a journal of footprint patterns you observe
• Do not trade footprint in isolation

Summary

Footprint charts reveal the battle between buyers and sellers at each price level. By analyzing delta, imbalances, and absorption, you can see institutional activity that candlestick charts hide. Focus on stacked imbalances for support/resistance and absorption patterns for reversals. Use footprint analysis at key levels for the highest probability trades.

Learn more: Delta Volume Analysis and Level 2 Quotes Guide.