PRAETIR / Comparisons

Distinguish heatmaps and volume profiles

A volume profile aggregates executed volume by price. An order-flow heatmap shows displayed liquidity through time. Together they help distinguish past activity from currently offered size.

Aggregation changes the question answered

A volume profile sums activity within the selected range. The point of control is the price level with the highest assigned volume under the chosen aggregation. The total alone does not show when executions occurred or which orders are resting now.

Past volume is not a current order

In a synthetic profile, 2,000 contracts traded at 5,000. The current order book displays only 80 contracts there. These numbers do not conflict: the first is a historical total, the second a visible size at one moment.

The profile can show an earlier concentration of trading. It does not guarantee the same liquidity will be present at the next contact. A later reaction belongs in the review as a separate observation.

Record session and price aggregation

Record the profile’s start and end, time zone and price-row width. A daily profile and a multi-day profile answer different questions. The displayed value area also depends on the selection and calculation convention.

Separate prior context from the outcome

Save the profile as it was available when the decision was made. A complete end-of-session profile contains future information from the perspective of an early trade. Do not present it in the review as information available then.

Sources and methodology

Sources explain concepts or the respective provider’s product descriptions. Worked examples are original and synthetic. Verify current contract specifications before use.

PRAETIR SYSTEMS

From understanding to your own review.

Explore the analytics platform or request access to the current early-access program.

Request early access ↗