Market price does not move due to some magical technical indicator on the screen or a combination of moving averages. If you operate in a short timeframe, and your positions are not based on analyzing the order flow, then your chances of survival in the market are reduced. Great traders are successful because they know that the result of mutual trade will be determined by the activity of other traders, by the order flow they create. That is all.
Commonly available tools give misleading information. If the trader is to interpret the information correctly, he must use a combination of several instruments. This, and the fact that the information is assessed very rapidly, creates enormous pressure on traders, which leads to mistakes. For example, a rapid series of green orders does not necessarily mean that the market is going up. Instead, it may mean that all the “market orders” that took place at one price level are absorbed by the professional traders at ASK price. In this case, the trader can expect a weakening market in the short term.
The Heatmap visualization is part of the Tape Reader. It actually gives the same information as the depth of the market does. Its added value is an intuitive view of the historical and current order flow. Looking back, you can see immediately what initiated the move and react when the price returns. The Heatmap gives perfect information about the ideal price at which to enter, the size of stop loss, and the closest target prices.
What does Tape Reader show?
What does Heat Map show?