What is Price Heatmap?
A heat map is a data visualization technique that shows magnitude of a phenomenon as color in two dimensions. The variation in color may be by hue or intensity, giving obvious visual cues to the reader about how the phenomenon is clustered or varies over space.
A trader can visually identify when the price of an asset is consolidating because the upper and lower bands get closer together. This means the volatility of the asset has decreased.
The price usually behaves like a wave made up of calm moments and choppy moments. This view allows you to identify at a glance what moment you are in and act accordingly.
How to be one step head of the market? Wait for the Heatmap to cool down and be ready for a market movement.
You can personalize all the colors, such as:
upper band color
lower band color
You can set a percentage value to show only the heatmap values that interest you.