One of the Keys to Reading Order Flow!
A footprint filter refers to filtering the Footprint data for only large lot trades. The filter is fully adjustable and only shows trades on the Footprint chart that meet the desired criteria.
The Footprint can be used in many ways, but the filtered view gives insight to what the large lot traders are doing, and more importantly, where they might be caught long or short. Below is a chart that Anthony (from our MarketDelta Trading Room) used to show how he's been viewing the Footprint through a filtered lens.
- The Footprint shows where aggressive buyers and sellers are trading, in other words...market orders.
- When an aggressive big buyer or seller trades, the Footprint Filter shows it in real time.
How to Use This to Your Advantage
- Ask the question "What does the market do?" when you see these orders.
- If it doesn't do what it should do, there's the clue!
- In the example above an aggressive seller sold 335 into the bid. The immediate expectation is for price to move down, but if it doesn't and violent counter move can ensue...which is what happened here.
How to Add the Filter
- Right click on the Footprint and choose Modify FP...
- In the Threshold column set the filter to whatever value you want.