Platform & Tools
What timeframes/pairs/exchanges are there and how to choose them?
We are constantly improving the product, adding new exchanges and trading pairs, so this list can continually expand.

You can freely access the complete list of timeframes, exchanges, and trading pairs by registering on the CandleWave platform.
Drawing tools: what are they, how to use them?
On the chart page of the CandleWave platform, you will find all the drawing tools you need. These tools are located in the left vertical menu for easy access. The platform continuously adds new drawing tools to enhance your trading experience.
Saving drawing elements in the cloud. How it works?
The CandleWave platform automatically saves all your drawing elements locally on your computer. However, if you log into your account from another device or browser, you will need to save your drawings on the server using the "cloud" button located in the left vertical menu.

This ensures that all your drawing elements are visible and accessible across all devices. By saving to the server, your drawings will be synchronized and available for you to access from any device you use to log into your CandleWave account.

What is the order book filter for?
The order book filter is a useful tool that allows you to filter out small orders from the order book, enabling you to focus on the buying and selling zones of large players.

By applying this filter, you can make the resistance and support plates more visible both in the order book and on the chart.

This helps you better analyze the market dynamics and identify significant levels where large players are actively participating in trading activities.

By isolating the orders of larger participants, you can gain valuable insights into the market's supply and demand dynamics, and potentially identify key support and resistance levels for making informed trading decisions.
Heat map. What is it and how does it work?
A heat map is a visual representation that displays the activity within the order book over a specific time period. It provides valuable information about the volume of limit orders at different price levels:

  • dark red colors represent low volumes in the order book;
  • orange and yellow colors indicate high volumes, which often suggest the involvement of important market participants;

Heat map analysis is particularly useful for identifying the activity of a limit buyer, allowing you to track their actions and potentially gain insights into their intentions. It serves as a valuable tool for anticipating price movements and generating ideas about the direction in which the price may move.

Within the heat map, there are three types of limit orders: long-term, short-term, and spoofing. Each type provides additional information and insights into the market dynamics and participant behavior.

Long-term liquidity
Long-term liquidity refers to a significant concentration of limit orders that remains in one particular area of the order book for an extended period, typically spanning one day or more.

It represents a substantial density of limit orders within a narrow price range, indicating sustained interest and activity from market participants over a prolonged duration.

Traders often monitor long-term liquidity as it can influence price movements and serve as a potential support or resistance zone in the market.

Short-term liquidity
Short-term liquidity refers to a significant concentration of limit orders that are grouped closely together within a small price range for a relatively brief period, typically around 2 hours. This dense concentration of orders indicates active trading activity and interest from market participants in that specific price range.

However, if this short-term liquidity remains unabsorbed or unchanged for a continuous period of 24 hours, it transitions into the long-term liquidity category. In other words, if the density of limit orders within a specific price range persists beyond 24 hours, it is considered as long-term liquidity instead of short-term liquidity.

Monitoring short-term liquidity can provide insights into immediate trading dynamics and potential areas of price action, as it reflects the current concentration of limit orders in a specific range.

Spoofing
Spoofing is a market phenomenon where a trader or group of traders intentionally place a substantial number of limit orders at a specific price level for a short period, typically ranging from one second to several minutes. The intention behind spoofing is to create an artificial imbalance in the order book and deceive other market participants.

The spoofing strategy involves placing a large number of orders with the intent to give the appearance of significant buying or selling pressure at a particular price level. This can create a false impression of market sentiment and potentially influence other traders' decisions.

Spoofing is considered a manipulative practice and is prohibited in most financial markets. Regulators and exchanges have implemented measures to detect and discourage spoofing activities, aiming to maintain a fair and transparent trading environment for all participants.

Long-term and short-term liquidity
Long-term and short-term liquidity play a significant role in price dynamics, but long-term liquidity holds greater importance and priority. When observing a decrease in price quotations, if short-term liquidity appears before long-term liquidity, it is unlikely that the price will halt at the short-term level. Instead, it is more probable that the short-term liquidity will be absorbed, and the price will move towards the long-term liquidity zone.

This observation suggests that long-term liquidity exerts a stronger gravitational pull on price movement compared to short-term liquidity. Traders often analyze these liquidity levels to understand potential support and resistance zones and make informed trading decisions. By considering the interplay between short-term and long-term liquidity, traders can gain insights into the dynamics of price absorption and the likelihood of price movement towards the more significant long-term liquidity areas.
How to use heatmap liquidity knowledge?
Using knowledge of liquidity from a heatmap can be a valuable tool for traders. Here's how you can effectively utilize heatmap liquidity information:
  1. Volume of limit orders: Pay attention to the density and volume of limit orders displayed in the heatmap. Higher density or larger volume within a specific liquidity level indicates a stronger attractor for the price. This suggests that market participants have a significant interest in trading within that range.
  2. Long-term or short-term liquidity: Consider whether the liquidity level is classified as long-term or short-term. As mentioned earlier, long-term liquidity holds greater priority and can exert a stronger influence on price movements. Identify the presence of long-term liquidity zones and assess their significance in relation to short-term liquidity levels.
  3. Proximity to the current price: Analyze the proximity of liquidity levels to the current price. If the price is situated between two liquidity zones, it is more likely to be drawn towards the one that is closer. Even if the nearest liquidity zone is classified as short-term, the price may initially move towards it as it is in closer proximity. Subsequently, it may continue towards the long-term liquidity level.
By combining these three factors, traders can develop a comprehensive understanding of liquidity dynamics and make more informed trading decisions. The heatmap provides a visual representation of liquidity concentration, allowing traders to identify key levels and potential price attractors in the market.
What are support and resistance slabs for?
Support and resistance slabs serve an important role in trading by providing insights into potential price reversal points and areas of significant market interest. Here's why support and resistance slabs are essential:
1. Price reversal identification: Support slabs indicate price levels where buying interest is typically strong enough to halt or reverse a downward price movement. Resistance slabs, on the other hand, represent levels where selling pressure tends to prevent the price from rising further. Traders analyze these slabs to identify potential turning points in the market and make decisions accordingly.
2. Momentum and inertia: When large support or resistance slabs are broken, it often triggers significant momentum in the price movement. This momentum can lead to further price acceleration as stop orders are triggered and market participants react to the breakout. Traders may capitalize on these momentum-driven moves, particularly in scalping strategies where quick trades are executed during such price breaks.
3. Confirmation and entry signals: Traders can use support and resistance slabs in combination with other tools or indicators to generate trade signals. For example, a bot indicator can provide signals when the price approaches or bounces off a support or resistance slab, indicating potential entry or exit points. This can help traders make informed trading decisions based on the behavior of the price around these significant levels.
By understanding support and resistance slabs and incorporating them into their trading strategies, traders can gain valuable insights into potential price reversals, momentum-driven moves, and decision-making points in the market.

How to customize the display of support and resistance slabs from the order book?
To customize the display of support and resistance slabs from the order book, follow these steps:
  1. Locate the order book menu above the chart in the top panel;
  2. Next to the order book menu, you will find a gear icon (fig. 1). Click on the gear icon to open the order book settings menu;
  3. In the order booksettings menu, you can adjust the visibility depth of the order book rows. This allows you to determine how many levels of the order book you want to display;
  4. You can also apply filters to the size of the slabs. Specify the minimum value below which all orders will be removed from the display, and specify the largest value from which the largest orders in the order bookwill be shown;
  5. Make sure to enable the "use filtering" option to activate the filters you have set;
  6. Click on the "Save" button to apply the changes and update the display of the support and resistance slabs (fig. 2);
Note that the specific values and options may vary depending on the trading platform or tool you are using. Adjust the filter settings based on your trading preferences and strategies.

Why do I have slabs displayed in one pair, but not in the other?
The reason you may have slabs displayed in one pair but not in another could be due to the filter settings you have applied. The filter values that are set for one exchange or pair may not be suitable or applicable to another exchange or pair.

To resolve this issue, you can adjust the filter parameters specifically for each exchange and pair. Open the order book settings and enter the filter values that are appropriate for the specific exchange you are trading on.

Additionally, it's important to note that the "on/off filter" setting is separate for each pair. Make sure the filter is enabled for the pairs where you want to display the support and resistance slabs.

For more detailed instructions on how to display support and resistance slabs from the order book, you can refer to the section "How to customize the display of support and resistance slabs from the order book??" or the documentation provided by the platform or tool you are using.
Levels and how to work with them
Levels play an important role in understanding the price movement and identifying potential support and resistance zones. Here is an overview of the levels and how to work with them:

  1. P (Power Point): the power point acts as a level of support and resistance. It also indicates the direction of the price movement or trend for the specified period. If the price is above the P zone, it suggests a priority for upward movement towards the higher levels (R1, R2, R3). Conversely, if the price is below the P zone, the priority is for downward movement towards the lower levels (S1, S2, S3). The P zone acts as a central zone that shows the overall direction of the price;
  2. R (Resistance Zone): the R zones represent levels of resistance or areas of interest from above. These levels can be seen as potential selling targets or areas where price movement may face resistance;
  3. S (Support Zone): the S zones represent levels of support or areas of interest from below. These levels can be considered as potential buying targets or areas where price movement may find support;
It's important to note that when using the levels, it's recommended to start with the larger levels to determine the overall direction. The indicator serves as an assistant to your trading strategy, providing information about the location of the levels and helping you better define your trading goals.

Remember to use the indicator in conjunction with your own trading strategy and analysis. It can provide valuable insights into the location of support and resistance levels, but it's crucial to combine it with other indicators, technical analysis tools, and market conditions to make well-informed trading decisions.

By understanding and utilizing the levels effectively, you can enhance your understanding of the price movement and have clearer targets for buying and selling assets.
What is order book Imbalance?
Order book Imbalance refers to the relationship between the buying (Bid) and selling (Ask) orders within a specified range in the order book. It is an indicator that monitors and measures the ratio of Bid and Ask orders to determine the balance of liquidity and potential price movements.

By default, the Order Book Imbalance indicator is set to 2.5%, but you can adjust this value based on your preference and the level of detail you require. The recommended operating range is typically between 2% and 6%.
When interpreting the indicator, let's consider the default setting of 2.5% as an example:
  1. Increasing Red Candles: if the histogram of the indicator shows a series of increasing red candles, it indicates a preponderance of Ask orders and suggests that the price is likely to rise. This means that the price is reaching towards the liquidity levels where higher sell orders are concentrated. It implies a potential upward movement in the price;
  2. Decreasing Red Candles: when the red candles on the histogram start to decrease, it signifies a change in the balance of liquidity. This could indicate a reversal in the price direction, suggesting a potential decrease in price;
  3. Increasing Green Candles: conversely, if the histogram displays a sequence of increasing green candles, it signifies a dominance of Bid orders and suggests that the price is likely to decline. This means that the price is moving towards the liquidity levels where higher buy orders are concentrated. It implies a potential downward movement in the price;
  4. Decreasing Green Candles: when the green candles on the histogram start to decrease, it indicates a shift in the liquidity balance. This could suggest a potential upward turn in the price direction;
Monitoring the Order Book Imbalance can provide insights into the buying and selling pressure within a specific range of the order book. By observing the changes in the imbalance, traders can gain an understanding of the potential direction of the price and make informed trading decisions.

It's important to note that the Order Book Imbalance indicator is most effective when used in conjunction with other analysis techniques and market indicators to get a comprehensive view of the market conditions and trends.

Volume Delta
Volume Delta is the difference between buys and sells. If there are more buys, the delta is positive (green); if there are more sells, the delta is negative (red).

In every transaction, there is both a buyer and a seller. However, according to the principle of matching exchange orders, a transaction occurs when an initiating market order "meets" a waiting limit order.

Therefore, when calculating deltas, it is considered that:
  • A sale occurs when a SELL-market order is matched with a BUY-Limit order (BUY-Limit is also called Bid).
  • A purchase occurs when a BUY-market order is matched with a SELL-Limit order (SELL-Limit is also called Ask).
How to use Volume Delta?
Using an example, you can see how the delta indicator decreases as the price rises. In other words, the price candlestick chart is rising, while the histogram bars for delta are decreasing.

This is called buyer exhaustion, indicating that a market reversal is likely to happen soon. In this case, you should consider joining the seller's positions. A similar scenario occurs when the market is falling.

When the candlestick chart is continually going down, and the histogram bars are also decreasing, this is known as seller absorption.

    Volume Delta Filter
    The Volume Delta Filter is an indicator with filtering capabilities that detects significant actions in the candle by Delta, filtering out minor metrics. It allows identifying overbought or oversold conditions.

    In the example on the picture below, you can see how effective this indicator can be with the right filter settings: after oversold conditions form on the candle, the price begins to move in the opposite direction.

    Volume Delta Anomaly
    This indicator automatically filters Volume Delta based on history. You won't have to manually adjust filter parameters, it will configure optimal filtration at once as you open any trading pair. The figure below shows an example of how anomalies can warn of a possible change in the direction of an asset's price movement.

    Cumulative Volume Delta
    The Cumulative Volume Delta is an indicator that is typically used in derivative markets, specifically futures trading. It calculates the cumulative difference between the buying and selling volumes over a specified period.

    In derivatives trading, it is not possible to physically buy and withdraw the underlying asset from the exchange because futures contracts represent an agreement to buy or sell the asset at a future date. As a result, the Cumulative Volume Delta is used as a proxy for analyzing the buying and selling pressure in these markets.

    To use the Cumulative Volume Delta indicator effectively, you can apply similar principles as you would with the Relative Strength Index (RSI) indicator. You can look for divergences and convergences between the indicator and the price chart.

    Divergence occurs when the price chart and the Cumulative Volume Delta indicator move in opposite directions. For example, if the price is making higher highs, but the Cumulative Volume Delta is making lower highs, it may suggest weakening buying pressure and a potential reversal in the price.

    Convergence, on the other hand, happens when the price chart and the Cumulative Volume Delta indicator move in the same direction. For instance, if both the price and the Cumulative Volume Delta are making higher highs, it indicates strong buying pressure and a potential continuation of the price trend.

    By observing these divergences and convergences between the Cumulative Volume Delta and the price chart, traders can gain insights into the strength and potential reversals or continuations of the price trend.

    It's important to note that the Cumulative Volume Delta is specific to futures markets and may not be applicable or available for other types of trading instruments, such as spot markets. Additionally, as with any technical indicator, it is recommended to use the Cumulative Volume Delta in combination with other analysis techniques to confirm signals and make informed trading decisions.
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