This chart is of course a Footprint Chart. The type of footprint is a Delta Colored Volume Histogram. Pictures indeed tell a thousand tales. If you don't have the footprints (obtainable from Market Delta and also available on Ninja Trader), you can see much of the same story on a candlestick chart. You can easily see balance areas form as bars overlap. But, as you can see from this blog, I find the footprints invaluable to tell a deeper story.
I have seen some old timers read candles and price/volume/range movement at incredible levels of mastery. But, I find mastering the footprints easier (although not easy).
One of the goals of this blog is to teach people how to use footprints effectively. A lot of people check them out and quit, thinking them ineffective. They are AMAZING once you begin to master them.
Hope it helps (and inspires),
MG
Hi Bryan,
ReplyDeleteExcellent site, with very practical info. Just linked via my Twitter service. Look forward to being in touch--
Brett
www.traderfeed.blogspot.com
Brett,
ReplyDeleteWhat an honor. I follow your site daily and recommend it to all of my friends and students. I also love your books and look forward to your latest. BTW, you (and your blog) were the inspiration for me to start my own blog.
MG
Could you provide the 2-3 steps to setup the footprint on NT or are you describing the TPO add-in offered by other vendors as a monthly service? Thanks much. Vince
ReplyDeleteVince,
ReplyDeleteI am using Market Delta (which I love). Their new 9.2 beta version is amazing. I am just learning to use it many new features.
NT's version made by Muly at www.fin-alg.com works well. And the TPO charts are good. I used them for a good while, but switched over to MD and would not want to go back. The MD version has so many features that help me.
So, I can't advise you on the setup. The Footprints for NT don't currently have 5 tick reversal charts although I hear it is coming soon, at least in the version PFG will be offering in the next month.
Hope it helps,
MG