TradeFinder for Bookmap

Current Average Volume and Liquidity Meter

TradeFinder current average liquidity and current average market volume meters are great supportive indicators, which measures the current average liquidity and market volume of an instrument.

Every traded, liquid stock exchange security, on every stock exchange worldwide, has different liquidity at every point of time of the day because the participation of the market participants is subject to constant change.

It is important to monitor Market Volume and Liquidity in daily trading: The relation between both indicators defines how volatile the instrument currently is. A rule of thumb here is: The higher the market volume and the lower the liquidity, the more volatile your instrument will be.

The relation should affect trading decisions:

  • Considered signal trigger change due to volatility
  • Trading setups may change based on volatility
  • Trading Strategy (Take Profit, Stop Loss) should be adapted based in volatility

Example

Average volume and liquidity meter
The average volume and liquidity meter can be customized to either display on the instrument’s chart or in a separate window.

Settings

Average volume and liquidity meter settings
Settings of Average Liquidity and Average Market Volume Meter in TTW-Liquiditytracker module
Enabling / Disabling
Disable the meter on the chart by choosing 'Disabled' in the 'Position' Dropdown menu. Select any other option within the same dropdown menu to enable a specific chart spot.
Layout & Design
A trader can select different layouts and designs for the display can be selected from the dropdown menu. To open the meters in a separate window, click 'Activate Live View'. Please keep in mind, only the 'Professional' design is available for the live view.
Current Average Liquidity
Define the 'DOM level from' and 'DOM level to' about the current traded price levels. This parameter establishes a price range for the algorithm to track changes in the relative liquidity of resting Bid/Ask limit orders.
Current Average Volume
Define seconds for which the average traded market volume is calculated backward from the current time.
Update
The update button copies the current values for this indicator into the fields next to it for statistical evaluation for the user.