Is purchasing heatmap analysis tool worth the money?

Discussion in 'Trading' started by SURVIVOR, Aug 31, 2024.

  1. SURVIVOR

    SURVIVOR

    Several software companies offer heatmap analysis for $40+ /month and in-depth order flow data for day traders. I would like to know if the tool helps you make timely decisions about entry/exit and stop loss. (The one example I have been looking at is from Bookmap, also the most popular brand)
     
  2. Or you could just do it for free in Google sheets.
     
    Sekiyo likes this.
  3. Sekiyo

    Sekiyo

    You might have a free trial ?
    If not … Take 1 month and try it for yourself.
    SierraChart also provide it with their package 12th.

    I’ve not tried it long enough and I don’t use it.
    I don’t even have level 2 on my DOM :rolleyes:
     
  4. Real Money

    Real Money

    I think it really depends on the market, but I have lots of proxies for order flow, some of them clever, some laughably simple. Maybe they're harder to understand than this type of software.

    For example, the ICS market (long/short yield curve spreads) greatly determines order flow in the rates market. NYSE traded volumes really affect price moves in stocks, and vol marks heavily influence flows in mega-cap stocks. Then there are futures basis spreads, intermarket quotes and volume weighted prices on cross-hedged index positions. VWAP and momentum algos in fx futures, etc.

    That software, if it does work, is easier to understand than the others I mentioned.

    Bottom line is, flows originate from different places in each market. Also, the off-exchange and unlit trading is substantial, so listed volumes have to be read in multiple ways.
     
    Last edited: Sep 1, 2024
    beginner66, trismes and SURVIVOR like this.