Shining a light on candlesticks

September 15, 2017
by VXfintech

Category: Market Activity

Continuing our series on candlesticks, using candlestick charts to look back at how the market reacted to a report hides a lot of the actual market activity.  By just showing the Open, High, Low and Close there is no insight as to how the market arrived at those price levels or its volatility.  Using V3, which shows every market event, gives a much clearer picture of the market reaction. 
 
In the chart above you can see right after the initial trade sweep there was an area of support.  With that spot identified, you can use V3 to zoom into that exact spot and see that a large quantity is sitting at that price level.  You can also take it a step further by clicking on that price level and get the breakdown of all the orders sitting there. 

 
What also is clear when looking at all the market activity is that right before the end of the minute there was a large trade sweep down, which just goes to show how volatile the market still was.  Again you can use V3 to zoom into that period and see both the sweep and the quote events surrounding it. 
 
 
By showing all market activity V3 allows you to identify areas of interest in the that are missed by just looking at candlestick charts.    

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