The background color of this graph symbolize the distribution of volumes by price levels over the last two hours. Bright areas represent prices at which the volume exceeded the average volume by the variance. Darker areas correspond to prices for which the volume of was about average.
If the background is only present on one side of the price chart, the price will probably follow the path of least resistance towards the uncolored side. During trends, the background may indicate levels where the price can possibly stop, which can be good points to enter a position. Bright colors highlight strong levels of support and resistance, in which case the price is likely to stop before continuing its movement or making an U-turn.
The list of market trades has long been the most popular tool for analyzing asset behavior. A great investor of the last century, Jesse Livermore, analyzed printed tapes while just a teenager and predicted changes on the market as accurately as modern neural networks. The smart tape combines standard information about orders, rates, transaction times, prices, and volumes with advanced indicators integrated directly into the table.
The market speed indicator shows how active crypto exchanges are. Jesse Livermore tracked the behavior of prices in the tape — that is, the volume and speed of price movements. Because of the success of this approach, traders started to refuse orders (brokers at that time accepted orders based on the increasing and decreasing of prices, and they also acted as counterparties in each transaction) because they understood that they would have to give Livermore everything they had. The indicator simplifies the determination of the movement speed of an asset by presenting it on a scale from 1 to 10.
Additionally, the tape reduces noise due to the aggregation of small transactions. For example, if there was an iceberg in the order book or even just a large order from which small portions were “bitten off” over a short time, the total volume would be shown as one trade.
The improved classic market analysis tool helps users determine at a glance entry moments before sharp market movements. Each asset price has its own specific behavior, so the use of this indicator involves the independent identification of patterns and the study of volumes to determine optimal strategies.
We can use this tool instead of charts and try to trade like the cult traders of a bygone era. The ability to use tape transactions is a rare skill, but at the same time, it is very useful, as it helps gain a better understanding of price movements and clearly capture the moments before price impulses.
____________________
The idea of creating a unique and useful set of tools that will allow traders to monitor changes in the market as a whole formed the basis of the Xena Market Barometer. All the charts on it allow users to see things the standard exchange indicator set does not show, and the original visualization and ergonomic arrangement of the elements help traders quickly navigate the scope of information and make the right decision.
Our recommendations for working with graphs are based on data from the International Federation for Technical Analysis IFTA.
Published at Mon, 13 May 2019 12:15:25 +0000
