How to Set Up a Footprint Chart in TradingView

Introduction
Footprint charts are an advanced trading tool that allows traders to see detailed information about the market's order flow. These charts help traders analyze the volume at each price level, the number of trades executed, and whether the trades were mostly initiated by buyers or sellers. Setting up a footprint chart in TradingView requires understanding both the platform's capabilities and the specific tools or plugins that support footprint charting. In this guide, we’ll walk through the steps to set up a footprint chart in TradingView, provide insights into interpreting these charts, and discuss some advanced techniques that can enhance your trading strategies.

Understanding Footprint Charts
Before diving into the setup, it’s crucial to understand what a footprint chart is. Unlike traditional candlestick charts, which only show the open, high, low, and close prices, footprint charts provide a granular view of market activity. They display the volume traded at each price level within a candle, distinguishing between buying and selling volume. This level of detail helps traders identify significant levels of support and resistance, spot potential reversals, and understand market sentiment more deeply.

TradingView and Footprint Charts
TradingView is a popular platform among traders due to its user-friendly interface, extensive charting tools, and large community of traders sharing ideas and strategies. However, TradingView does not natively support footprint charts as it does with other chart types like candlesticks or Heikin Ashi. To access footprint charts in TradingView, you will need to use third-party plugins or external platforms that integrate with TradingView.

Step-by-Step Guide to Setting Up Footprint Charts in TradingView

Step 1: Choosing a Third-Party Plugin
Since TradingView does not natively support footprint charts, the first step is to find a third-party service or plugin that can be integrated with TradingView. Several platforms offer footprint charting capabilities, such as Exocharts, Sierra Chart, and ATAS. These platforms typically provide more advanced order flow analytics, including footprint charts, market profile charts, and other tools that help in detailed market analysis.

1. Exocharts: Known for its detailed footprint charts and customization options.
2. Sierra Chart: A versatile platform with extensive charting capabilities, including footprint charts.
3. ATAS: Focuses on order flow and volume analysis with a strong footprint chart feature.

Step 2: Setting Up the Plugin with TradingView
Once you have selected a plugin, you’ll need to set it up alongside TradingView. This usually involves the following steps:

1. Subscription: Subscribe to the chosen third-party service. Most of these services offer various pricing plans based on the features required.
2. Download and Installation: Download the plugin or software and follow the installation instructions provided by the vendor.
3. API Connection: Many of these tools can be connected to TradingView using API keys. This allows you to sync data between TradingView and the footprint charting software.
   • In TradingView, go to the Settings > API Access section.
   • Enter the API key provided by the third-party service to establish the connection.

Step 3: Configuring the Footprint Chart
After successfully connecting the third-party plugin to TradingView, the next step is to configure the footprint chart according to your trading strategy. Here's how you can do it:

1. Select the Asset: Choose the asset or market you want to analyze, such as a specific stock, forex pair, or cryptocurrency.
2. Time Frame: Decide on the time frame for your analysis. Footprint charts can be used on various time frames, from tick charts to daily charts, depending on your trading style.
3. Footprint Type: Configure the type of footprint chart you want to use:
   • Bid/Ask Footprint: Shows the number of contracts or shares traded on the bid and ask at each price level.
   • Delta Footprint: Displays the difference between the buying and selling volume at each price level.
   • Volume Footprint: Represents the total volume traded at each price level within the candle.
4. Chart Settings: Customize the chart appearance by adjusting colors, fonts, and other visual elements to make the chart easier to read.

Step 4: Interpreting Footprint Charts
Once your footprint chart is set up, interpreting it correctly is key to making informed trading decisions. Here are some common ways to interpret footprint charts:

1. Imbalance Detection: Look for areas on the chart where there is a significant imbalance between buying and selling volume. These imbalances often precede price reversals or breakouts.
2. Volume Clusters: Identify clusters of high volume at specific price levels. These areas often act as strong support or resistance zones.
3. Delta Analysis: Use delta footprints to understand whether the market is being driven by aggressive buyers or sellers. A positive delta indicates more buying, while a negative delta indicates more selling.
4. Order Flow Analysis: Combine footprint charts with other order flow tools, such as the market depth or time and sales, to get a complete picture of market activity.

Step 5: Advanced Techniques
To further enhance your trading strategy, consider incorporating advanced techniques using footprint charts:

1. Volume Profile Integration: Combine footprint charts with volume profile analysis to get a more detailed understanding of where the most trading activity is occurring within a given range.
2. Market Profile and Footprint Overlay: Overlay market profile information on your footprint chart to see how the market structure aligns with order flow data.
3. Automated Alerts: Set up automated alerts in TradingView based on specific footprint chart patterns, such as high delta imbalances or significant volume clusters, to catch trading opportunities in real time.

Conclusion
Setting up a footprint chart in TradingView requires the use of third-party plugins or software, as the platform does not natively support this advanced charting tool. By following the steps outlined above, traders can unlock the potential of footprint charts to gain deeper insights into market behavior, improve their trading strategies, and make more informed decisions. Whether you’re a day trader looking to capitalize on short-term movements or a swing trader seeking to understand the broader market context, footprint charts can be an invaluable addition to your trading toolkit.

Summary
To sum up, footprint charts offer a detailed view of the market’s order flow, enabling traders to analyze volume and trade direction at each price level. By using third-party plugins, such as Exocharts, Sierra Chart, or ATAS, traders can integrate these advanced charts into TradingView, customize them to fit their strategies, and interpret them to identify key market signals. With the right setup and interpretation, footprint charts can significantly enhance your trading performance.