Video lesson · Order bookOrder book heatmap: how to read the walls
Order book heatmap — book density as bands right above and below the candles. The lesson takes 1:53; its full text is below the video.
Narrated in Russian. English subtitles are on by default.
Heatmap in short
What does Heatmap show?
On the price chart, green bid bands extend down from each candle body and red ask bands extend up. The four bands match four distances from price. The brighter a band, the more money sits in that part of the book.
How to read Heatmap?
- A bright green band under the candles means dense bids close to price.
- A bright red band above the candles means dense asks that price has to get through.
- If a band fades as price approaches, the orders were pulled before being touched.
How to use Heatmap?
- Look for spots where price leans on a bright band for several candles; that is where liquidity is concentrated.
- Compare the brightness of the two sides to see where more orders sit right now.
- For exact levels and the history of individual orders, turn on Liquidity Map.
What do you often see on Heatmap?
- A band often fades as price approaches: orders are pulled before the touch rather than filled.
- Brightness is relative, so compare the two sides with each other, not with another coin.
- Price pressing into a bright band for several candles in a row marks where liquidity is concentrated.
- It describes the state of the book, not direction: on its own it does not say where price goes next.
Where can I find Heatmap?
In the Liqwall terminal: the Indicators button, the Order book section, Heatmap. The “Open in the terminal” button on this page opens the chart with it already added.
Lesson text
0:00What Heatmap is
The order book right on the candles, without a separate window. Heatmap draws how much money stands above and below the price, on every candle.
0:09How to add Heatmap to the chart
Heatmap is in the indicator list, in the Order book section. It draws right on the price chart.
0:17How to read Heatmap
From each candle, green bid bands go down. Red ask bands go up. Four bands are four distances from the price. The brighter the band, the more money in that part of the order book.
0:30Heatmap settings
The Level 1 to Level 4 settings set the distances of the bands. Side keeps both sides or just one. Opacity is transparency, so the bands don't cover the candles. The main thing is to compare the brightness of the two sides. Where is there more money now, below or above? If a bright band fades as the price approaches, the orders were pulled before the touch.
0:54An example on a real chart
An example. October 2, Bitcoin, 15 minutes. In the afternoon the price reached 87,250. Above the candles, bright red ask bands were glowing at the time, while the green bands below faded and moved away from the price.
A dark void appeared under the candles. For several candles the price pushed against the red, and from 5 p.m. it went down. By a quarter to ten it was already at 83,842. The chart shows that nothing held it on the way down until the green bands moved back up to the candles.
Heatmap pairs well with Order Book Pressure. Heatmap shows how much money there is, and Order Book Pressure shows how many times heavier one side is. Liquidity Map gives the exact prices of individual orders. Density shows the same bands as lines in a pane.
1:46The takeaway
See what stands in the price's way, right on the chart.
Add the indicator to the chart and look at it on your own coin.Free account — no card needed.