[015] FP Handbook I

The Footprint is a versatile tool for viewing Orderflow

1. Displays : Time / Volume / Price / Orderflow

2. Receipts of what actually happened

3. Can be used in all markets

4. Can be used at any timeframe

Orderflow is the Heart of the Market. It is the purest form of trade.

When a candle ticks up and down, it is because of an interaction that happened between buyers and sellers. These interactions are printed on a Footprint Chart. When a market order is made, the receipts are displayed here.

**Fundamental : Difference between Limit Order vs Market Order

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I’ve designed this Chart to represent :

• NQ : Tick Compression : 1.00

• Time Based Chart : 5 Minutes

• Bar Close : Candlestick Outline

• Additional Columns : None

• Calculated Values : Volume / Cumulative Delta

• Colouring Method : Horizontal Difference

• Colouring Method : Darker when [%] threshold met

• Charting Software : Sierra Charts

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Reference 01

To read a Footprint

1. Define Column : In this example, it is defined by 5 minutes of time.

   1. Common Definitions : Time, # of Trades, Reversal

      1. When 5 minutes of time have passed, a new column will be formed

2. The exchange occurs diagonally.

   1. Four (4) contracts were sold into the low 16780,

   2. Four (4) contracts were bot into 16781.

   3. Thirteen (13) contracts were sold into 16781,

   4. Twenty Seven (27) contracts were bot into 16782

Referencing how an extreme is formed is key to understanding an auction.

This low of the day is a [Finished Auction]. In the realm of FP, this is defined by the taper in volume. Traditionally the high/low of a column is finished with 0x## to the upside, and ##x0 to the downside.

Based on the activity at the low, the Market is telling us that an active bid had entered; Preventing the Market from doing business lower.