Several software companies offer heatmap analysis for $40+ /month and in-depth order flow data for day traders. I would like to know if the tool helps you make timely decisions about entry/exit and stop loss. (The one example I have been looking at is from Bookmap, also the most popular brand)
Is purchasing heatmap analysis tool worth the money?
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Or you could just do it for free in Google sheets.
I think it really depends on the market, but I have lots of proxies for order flow, some of them clever, some laughably simple. Maybe they're harder to understand than this type of software.
For example, the ICS market (long/short yield curve spreads) greatly determines order flow in the rates market. NYSE traded volumes really affect price moves in stocks, and vol marks heavily influence flows in mega-cap stocks. Then there are futures basis spreads, intermarket quotes and volume weighted prices on cross-hedged index positions. VWAP and momentum algos in fx futures, etc.
That software, if it does work, is easier to understand than the others I mentioned.
Bottom line is, flows originate from different places in each market. Also, the off-exchange and unlit trading is substantial, so listed volumes have to be read in multiple ways.
For example, the ICS market (long/short yield curve spreads) greatly determines order flow in the rates market. NYSE traded volumes really affect price moves in stocks, and vol marks heavily influence flows in mega-cap stocks. Then there are futures basis spreads, intermarket quotes and volume weighted prices on cross-hedged index positions. VWAP and momentum algos in fx futures, etc.
That software, if it does work, is easier to understand than the others I mentioned.
Bottom line is, flows originate from different places in each market. Also, the off-exchange and unlit trading is substantial, so listed volumes have to be read in multiple ways.
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