Imbalance Zero-Cross Signal

Definition #

TTW-TradeFinder introduces the innovative TTW Imbalance Zero-Cross Signal, an add-on to the TTW-Imbalance Tracker. This intuitive feature identifies a cross over the zero line in the sub chart, which signifies a potential shift in the order book balance.

Strategy #

Operationalizing the Imbalance Zero-Cross Signal involves utilizing the Imbalance Signal and its corresponding Trigger in % settings. This approach revolves around a shift of 20% or more of the Imbalance line crossing the Zero Line in the sub chart represents a significant market event. Consequently, this event displays on the Bookmap chart as a crucial alert for the trader.

License #


Zero-Cross Signal Function #

The Zero-Cross Signal primarily alerts traders to an impending order book imbalance flip. TTW-Imbalance Tracker, which measures the order book imbalances with precision, makes this possible. The theory of Orderbook Imbalance presents the difference between the number of quotes on the bid side and the ask side of an order book, divided by their total. This critical insight into the supply and demand dynamics of a market potentially predicts price direction. Therefore, the Imbalance Zero-Cross Signal becomes instrumental in identifying significant market shifts, supplying traders with vital information promptly. This tool simplifies navigating the complexities of trading.

Imbalance Signal Settings Panel

Zero-Cross Signal Example #