Volume analysis tools allow you to understand the causes of price movement, clarify and confirm support and resistance levels, as well as assess the imbalance between buyers and sellers. But volume tools are link to a specific time (timeframe), not allowing to see an execution of large orders at the moment.
Using Power Trades you can see the execution of a large number of orders in a very short time, which will affect the price change with a high probability.
Power Trades shows the zones with the execution of a large number of orders in a very short time, which will affect the price change with a high probability. Let's take a look at a few examples.
Power Trades tool shows huge executed trades for the short time
Power Trades tool
Power Trades on Euro Futures
There is a continuous process of placing, changing and executing orders in the market. All this affects the price change and the expectations of traders regarding the future price. When a large order appears at a certain level, the price is more likely to come to this order and it will be executed because the market is always looking for levels with liquidity. This already applies to the order flow and the mechanics of orders matching, so we will omit the principles on which the orders are matched. It is only important to understand that "abnormal events" occur in the market at certain times. Execution of a significant volume of orders in a very short time is one of such events.
For example, let's set the Total Volume of 2'000 contracts and Time Interval in 3 seconds on the E-mini SP500 futures. This means that the scan will be based on the available history and will show on the chart only those zones that have such a volume for the specified time.
Additionally, it is worth to set a delta value to filter out the zones with one-side trades. The more delta value, the high probability that the price will reverse.
The following settings are involved in the calculation of the indicator, and directly affect the results.
- Total Volume — the minimum value of the volume that should be traded during the specified time interval
- Time Interval, sec — the time over which the Total Volume should be traded
- Basis Volume Interval, sec — this parameter shows how much % took the traded volume in the total volume for the specified time.
- Min Trade Volume — the indicator calculation takes into account the executed trades, each with the size equal to or greater than the set value. For example, we can set 100 contracts, and all trades with the volume not less than the specified one will be taken into account in the calculation of the zone.
- Max Trade Volume — the indicator calculation takes into account the executed trades, each with the size not exceeding the set value.
- Zone Height, ticks — this parameter will show only those zones where the height is less than or equal to the specified value (in ticks).
- Level2 level count — the number of levels that are involved in the calculation of Imbalance and the Level 2 Ratio column in the table of results.
- Filter by Delta,% — the parameter will show zones that have a delta value greater than or equal to that specified in the setting. The value must be specified by module, so the table will show both positive and negative delta values. We recommend to pay attention to the zones with the delta above/below 50% (taking into account the specifics of each trading instrument).
- Filter by Basis Ratio, % — the parameter will show zones that have a Basis Volume (%) value greater than or equal to that specified in the setting.
Settings that do not affect the indicator calculation. These are mostly visual and sound settings
- Play alert sound — the option turns on / off the sound signal when a new zone appears.
- Coloring view mode — set the color for all found areas on the chart. By delta mode: colors can be set depending on the sign of the delta - positive or negative. By filtered volume: mode sets a different color for areas whose total volume is greater than or equal to the one set in the threshold.
- Highlight area color — set color for the selected area on the chart
- Sidebar view mode — setting controls the data displaying — Table result, Market Depth only, Full view (Table + Market Depth), None.
When the Power Trades is enabled, it immediately starts searching for zones according to the settings. The search for zones takes place throughout the entire history available on the chart, so at a significant depth of history its calculation can take a long time.