How to Customize a NinjaTrader Footprint Chart for Faster Market Analysis

 

A NinjaTrader footprint chart will enable a trader to conduct an analysis of market activities much faster through the identification of buying and selling volumes of price movements. Apart from candlestick charting, there exist other means of customizing the chart to include order flow, volume imbalance, and important price levels that will be helpful for the trader.

The trader can identify trading setups and minimize unnecessary market noise with a well-configured footprint chart.

Why Customize a Footprint Chart?

While analyzing standard price charts, the trader is able to know where prices have gone; however, this information alone does not tell the reason why they moved. In contrast, the customization of the NinjaTrader footprint chart will help a trader get information regarding the buying and selling volumes of price levels.

Industry reports reveal that over 70% of institutional trading volume is generated from the analysis of order flows and volume.

Which NinjaTrader Order Flow Metrics Should You Display?

As you configure the NinjaTrader order flow display, focus on data that helps make quicker decisions rather than flooding the chart with irrelevant statistics. Some of the key elements to enable include:

●      Bid vs. ask volume at each price level

●      Delta (difference between buy and sell volumes)

●      Volume imbalance indication

●      Nodes with high volumes

●      Absorption and exhaustion alerts

Such a configuration will help determine which side is controlling the market before the price movement happens.

How Can Color Settings Improve Market Analysis Speed?

Using different colors is not just for better looks but also to speed up the process of making decisions. For instance:

●      Choose green colors for aggressive buying.

●      Select red colors for aggressive selling.

●      Use brighter colors to show high imbalances.

●      Keep neutral background colors.

The cleaner the color selection is, the easier it will be to detect important changes immediately.

Why Should You Combine a Footprint Chart with Market Profile?

Combining a footprint chart with the Market Profile will increase its efficiency. A footprint chart shows the trader the current level of activity, while Market Profile points out zones of high liquidity and POC. It enables traders to:

●      Verify the strength of breakouts;

●      Find out support and resistance zones;

●      Discover whether there is acceptance or rejection at certain levels.

It’s more beneficial for a trader to use both tools rather than only one.

Conclusion

Customizing a NinjaTrader footprint chart enables traders to make trading decisions at a much faster pace since it enables them to identify significant order flow rather than just price movements. In combination with NinjaTrader order flow and Market Profile capabilities, solutions provided by Ninza.co can help customize your chart for quicker and more accurate decision-making.