Here is a nice follow up Footprint example that has been annotated to show a couple of key concepts. (click for larger view)
- Deceleration into an important level
- Double bottom.
Nothing provides intra-bar transparency like a Footprint chart, and never is it more important than on retests of key levels. The screenshot below (click for larger image) shows a perfect example of how Footprint chart information provided confirmation of volume drying up at this level and would have added confidence to trust he double bottom pattern would hold.
Earlier today the Corn market experienced a limit up move (temporarily) and we caught this on video. It offers a good real time example of these rather rare occurrences and highlights the added value only a Footprint chart can provide.
What is Limit Up or Limit Down
Limit up or limit down are conditions more common in pure commodity markets where the Exchange has imposed price trading limits which are in place for each trading session. Limits get expanded each day if a market trades at limit the previous day. The limits “halt” the ability of a market to trade beyond that point. In the case of limit up moves, buyers can place bids (buys) at the limit price. They may or may not get filled at that price. It all depends on whether sellers think they can get more (a higher price) or whether they decide to sell into the bid. Watch as the Footprint chart captures this dynamic in the video.
In this real time video capture we see an example of limit up, which represents buyers willing to pay the highest possible price the commodity is allowed to trade at for the session. You can see the quantity and how many contracts there are to buy at “limit up”. The Footprint captures exactly how much trading is occurring at these limit prices and allows for great transparency chance for opportunity.