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What is Heatmap Trading

how the Heatmap is used in trading

The Heatmap (together with the Footprint) is part of the famous Order Flow.

The Heatmap is a visual representation of the order book, the Heatmap trading allows you to see all the market orders that have already taken place and that are taking place, in addition to these the Heatmap trading represents the orders together with their size (the larger the order, the larger the bubble will be), it represents graphically which are the most populated areas of the book.

This obviously gives us an incredible advantage because unlike trading with the traditional book, the Heatmap trading allows you to view the historicity and intensity of the orders occurred in the past and thanks to its graphical representation manages to convey it in an easy and intuitive way, with the traditional book instead there is no possibility to observe the historicity, but even you would not be able to keep up with the current liquidity of the trades that are taking place at this very moment.

In addition, one of the gems of the Heatmap is the ability to identify typical institutional orders, also known as Iceberg orders, in the video at the top of the page you can directly see that area and the operation performed.

The Heatmap expresses the best of itself when it is supported from the Footprint and from the Volume profile, obviously like whichever other volumetric instrument cited to the previous line it can be implemented to the own methodology, if already the trader possesses one.

The Heatmap together with the Footprint and the Volume Profile is the best combination a trader can adopt, I leave here the link to the MASTERCLASS where I explain the three tools and the advantages they can bring.


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