#AprendamosJuntos
Since many have asked me:
What is a Heat Map in Trading and what is it for?
A heat map in trading is a visual tool that shows the distribution of orders, volume, and liquidations at different price levels. It is used to identify areas where there is an accumulation of pending orders, which can indicate supports, resistances, or key liquidity levels.
What is it for?
✅ Detect liquidity zones: Shows where there is more buying or selling interest.
✅ Predict price movements: Areas with many orders can act as support or resistance.
✅ Visualize massive liquidations: Helps understand where leveraged traders may be forced out of the market.
✅ Confirm trading strategies: Can complement technical indicators to improve decision-making.
It is used to anticipate sharp movements and seize opportunities before the price takes a direction.