Key Points / Footprint Trading
Footprint trading is an advanced trading technique
Footprint trading uses footprint charts
Scalpers like footprint charts
Tools for Footprint Trading: #tensorcharts #bitfinex
Footprint trading is a trading technique used on both cryptocurrency and legacy markets.
The benefits of footprint trading are more pronounced in short-term speculation techniques, such as scalping.
Footprint charting is a way of plotting the price action to get the so-called “footprint” within a candle.
The footprint is essentially a histogram that plots the volume traded at each price segment of a candle. A candle footprint chart could look like this:
Usually, the display is done in a way that is easier to look at, such as by coloring segments of the candle with different levels of intensity:
Tools for footprint trading in crypto
- Tensorcharts was the original charting app that was the first to provide footprint charting for crypto. Footprint is available in paid plans. (More on TensorCharts)
- Tradingview currently does not provide footprint charting, but it is going to be added as a feature to Tradingview paid plans soon.
An indepth look at Footprint Trading is here.