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Order flow basics: the beginner course

Module 08 · 8 · The heatmap and large ordersLesson 37 of 659 min🔒 Students only

The heatmap: the order book's memory

The liquidity heatmap fixes the DOM's great weakness: its lack of memory. It records the order book continuously and draws it over time. The vertical axis is price, the horizontal axis is time; at each price and each instant, a color shows the quantity of limit orders that were waiting. A colored horizontal band is therefore a level where liquidity stayed posted, and its length tells you for how long.

It is DeepDom's central tool. It does not show what traded, but what was waiting: the intentions, before price tests them. Combined with the execution bubbles, it lets you see, live, aggression meeting liquidity.

Student access · free

The rest of this lesson is for students

Also in this lesson
  • Reading the official capture
  • The colors
  • The scale recalibrates

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