Matrix and Time&Sales in Protrader
Hey there, Protraders!
Today we’ll speak about intraday trading and those instruments which can improve your trading results. Intraday trading by right has a reputation of one of the most difficult types of trading. It is connected with several reasons. First – the trader is forced to be in the maximum concentrated state for quite a long time. Second – interests of different groups of the market participants are frequently encountered on this trading horizon, so for example, the long-term investors can perceptibly shift the price intraday when opening or closing their positions, despite all the calculations of intraday traders. High frequency traders can significantly worsen the price of entry/exit for intraday traders. Therefore the intraday trader must be able to react quickly on changing market situation while taking into account the longer-term trends. It is not important on what basis the intraday trading system was built; its indicators can be significantly improved by using as a filter of Market depth (Level II) and Time & Sales. Both of these tools are based on the sentiment analysis of the market participants, and can help in the definition of the prevailing market moods. As we already know, the market trading is the double auction between the market participants. In this case, the major acting forces are buyers and sellers who can realize their intentions relatively to the traded asset in two main ways: by market or by pending orders. The price dynamics of the traded asset depends precisely on the ratio and activity of these participant groups at a particular moment of time. Market depth is the table in which the trader can see pending orders by the corresponding depth from current price. Analyzing the amount of pending orders, the dynamics of its change, the relation of orders oriented on the purchase or sale of an asset in the moments of certain price movements and on the approaches to significant technical levels, the trader can assess the market sentiment prevailing in the current moment, and use it for own purposes. The Matrix module is designed for the convenient work with Market depth in the Protrader terminal, which is a tool of advanced Market depth analysis. To use it, go to the Terminal - > Matrix.
After that, window of the Matrix module becomes available, which consists of price scale of the selected asset and histogram of the pending orders’ volumes on the purchase and sale by both sides of the current price.
Let’s describe the main items of the Matrix module:
- The selection menu of the traded instrument and the trading account which is used.
- The activation/deactivation button of the automatic centering of the volumes histogram, and also the activation button of trading using mouse.
- Menu of the trading orders’ settings. Here you can choose the order type, its volume, set the standard values of Stop loss and Take profit, and enable the Trailing stop function.
- Menu of placing the trading orders. In this menu you can choose price of the order prepared in the previous menu. You can buy/sell at the best market prices (Sell Bid/Buy Ask), buy/sell the asset at market price (Buy/Sell by market) or place pending order at the price higher or lower than current market prices (Add Bid/Add Ask).
- Menu of closing the positions. Using this menu you can close position by selected instrument and trading account (Close pos.), reverse the position (Reverse pos.), cancel all pending orders (Cancel all), and cancel pending orders on the purchase or sale (Cancel bids/Cancel asks).
Let’s dwell on the practical use of the Matrix module in the trading. As previously mentioned, the price depth reflects the volume and dynamics of pending orders changing. The use of this information is almost always reduced to the search and identification of trading situations in which the significant “imbalance” between buyers and sellers is observed. Such analysis is extremely useful when approaching to the important technical levels. When by dynamics of pending orders we can understand whether breakthrough will be of this level or bounce will occur. The situations with appearance of abnormally high volumes at certain levels are also interesting. Function of the trading using mouse allows you to quickly implement the trading strategy without wasting time on a long placing of the trading order by standard method.But the information obtained from the “depth” of prices is not complete, since it reflects the dynamics only of pending orders. In order to get the full analysis of current market state, you need to track the information by the already made trades. This can be done using the “Time & Sales” module.
To get access to the “Time & Sales” module, choose Terminal - > Time & Sales.
After that, window of the “Time & Sales” module becomes available, which consists of several customizable fields that reflect information by made trades.
“Time & Sales” can work in two modes: Real time (reflects only current market data) or History range (reflects market data for the selected history period).
Let’s dwell on the market information that is available in the “Time & Sales”:
- Time – time of making the trade.
- Price – the price by which the trade was made.
- Size – the volume of the made trade.
- Bid/Ask – the value of the best market price on the purchase and sale.
- BidxAsk size – the volume of the pending orders by Bid and Ask prices.
- Side – the side of the made trade.
You can set the filters of displaying and signals for each column. For example, in order to see the trades only of higher volume.Setting of the signals won’t allow you to miss an important market event. How can we use information from “Time & Sales”? There are several main parameters being monitored by the experienced traders:
- The volume of the positions. This information tells us about market liquidity at the current moment. Basically the traders are engaged in commerce in the situations when volume of trades taking place comes near to the average value by selected instrument, trading on “thin” market is more unpredictable.
- The speed of the trading. The high speed of the trading indicates the high interest of the market participants. The speed of the trading is increased at key technical levels. Also it is necessary to take into consideration the schedule of the marketplaces and choose the most liquid time to trade.
- The dynamics and side of the positions. In some situations, the market participants collectively decide to buy or sell the asset. Then, we can observe the “flow” of unidirectional trades in the Time & Sales. This is accompanied by impulsive price movements of the traded asset. The dynamics of orders allows us to assess more fully the current market situation and make more qualitative prediction.
All information from “Matrix” and “Time & Sales” is individual for each trading instrument by virtue of different composition of trading participants and variety of their strategies. The use of this market information significantly increases the chances of success, since standard, for example, technical signals are confirmed by real actions of market participants. As we noted at the beginning of this article, this information is particularly relevant for intraday trading by virtue of its specificity. Let’s consider the example of grouping of the trader’s workspace taking into account “Matrix” and “Time and Sales”.
The Protrader terminal allows traders to use all the advantages of high-technological electronic trading, in particular provides the “Matrix” and “Time and Sales” modules, using which it is convenient to analyze the information about made trades and pending orders by the selected asset that allows to correspond to the dynamics of selected asset and increase efficiency of your trading.