TradeFinder for Bookmap

Orderbook Imbalance

Orderbook Imbalance refers to the divergence between the count of quotes on the Bid and Ask sides, divided by their total. Essentially, it provides a snapshot of which side of the orderbook has a larger accumulation of quotes.

Orderbook Imbalance in TradeFinder

The Imbalance Tracker is a powerful tool for monitoring the order book imbalance of every liquid instrument available.

With a historical view of imbalances, it provides a keen understanding of how the Orderbook Imbalance have evolved over time. This indicator also sends a notification when an imbalance threshold, set in advance, is met. Not just that, it can alert you when the zero line of the imbalance in the sub-chart experiences a shift from one side to another.

Orderbook Imbalance example
The Imbalance Tracker shows us the imbalance line in the sub chart where we can track the historical development over time and alerts the user when a certain threshold of imbalance is reached.

Settings

There are 2 sets of settings available for indivdual imbalance analysis.

Imbalance settings
Settings for Orderbook Imbalance in TTW-ImbalanceTracker module.
Imbalance Line
The Imbalance Line, presented in the sub-chart, visually represents the Orderbook Imbalance’s historical progression and current value.
DOM Level from and to
The imbalance calculation relies on a user-defined price range within the orderbook, with the current traded price level serving as a reference point. Adjust this range based on the specific market situation of the traded instrument. In the given example, the imbalance calculation is set between 1 tick to 60 ticks from the current price level on both Bid and Ask sides of the orderbook.
Imbalance Signal
You can customize Imbalance Alerts to receive signals when the imbalance hits a particular threshold. These alerts are conveniently displayed on the chart. By default, these are shown as small colored triangles below or above the traded price, correlating to an imbalance equal to or exceeding user-defined parameters.
Trigger (%)
You can define the imbalance value, or the trigger percentage, at which the chart displays the signal. For instance, in the given example, a signal will appear when either the Bid Imbalance surpasses the Ask Imbalance by 20% (Green triangle) or the Ask Imbalance exceeds the Bid Imbalance by 20% (Red triangle).
Signal Design
Click on the “Edit” button to tailor the chart’s signal. You can define the color, symbol, size, position, and price display options to match your preferences. Customize your trading interface to make the most of your strategy.