While not specifically related to Footprint charting, but definitely related to auction analysis, of which the Footprint is a part, there was an interesting blog post yesterday by MarketDelta that predicted, almost to the tick, where the market traveled today. Click here to read it, as it is an interesting yet simple example of the power of auction market theory.
Essentially, they showed all the volume activity since the market broke down in August, and drew a volume distribution around it, showcasing the value area and the POC. The POC is the area of most-traded volume in a profile, and for the last two months in the ES this number is at or around 1157, which pegged today’s closing high perfectly, and all in one day.
It is interesting that, on a day when the market surged 2% and many are surprised by this, that simple auction analysis showed how likely this was to happen, and very soon. I recommend their blog for this reason. And of course, they provide the best Footprint chart software you will ever find.