Suggest Reversal Settings for Footprint Charts

We are often asked what are some good “rule of thumb” settings for the reversal settings when viewing Footprints using the point and figure (reversal) methodology. While there are no magic settings, here are some good base line values to work from and dial them up or down to your particular style of trading.

First, to make these changes hover over a Footprint and choose Modify FP.  Set it up as shown below.

All the recommendations below assume a box size of 1. When a market becomes more volatile, consider using larger reversal numbers. You can also use larger numbers to identify swing trades instead of just day trades.

Reversal Settings

S&P Emini – EP – 4 or 5 Nasdaq 100 – ENQ – 6 or 7 Mini Dow – YM –  6 or 7 Euro Futures – EU6 – 5 or 6 Light Crude Oil – CLE – 7 or 8 Gold – GCE – 7 or 8 30 Yr Bond – USA – 3 or 4 10 Yr Note – TYA – 4 or 5 Bund – DB – 4 or 5 Dax – DD – 7 or 8 Eurostoxx 50 – DSX – 4 or 5

Regarding box size, you should always use 1, which represents 1 tick.  Unless you are a hard core point and figure user, stick with a box size of 1 100% of the time. Here is a formal explanation in point and figure terms of box size and reversal. http://help.cqg.com/marketdelta/#!Documents/pointandfigurepf.htm

Developing Imbalance Footprint Explanation

Developing Imbalance Footprint Explanation

Suggested Imbalance Footprint Settings

Suggested Imbalance Footprint Settings