Auction Vista is an innovative yet intuitive tool that shows both an historical and real time view of Order Flow events. Auction Vista is included with the lifetime license of Jigsaw Tools.
Auction Vista gives you an ‘at a glance’, intuitive view of both historical and current Order Flow. This is the same information that Depth & Sales displays but it allows you to:
- Look back in time at recent history to see what initiated a move. Which helps to decide what to do if you return to that point or even if you should trade a continuation based.
- See how the depth is being manipulated, for example when large bids keep disappearing when price moves towards them, you can be suspicious of any new depth that appears below you as it may just be a continuation of that spoofing move.
- See when depth is actually real.
- Monitor the overall balance of trade with the Trade Thermometer that helps you to identify if a market is directional or is really just moving within a range, as well as the Trade Circles which show balance of trade when exceptional volume is traded at a price.
The best way of explaining the benefits is by showing a period of trading and go through the visuals generated. Click the image to see it full size
1 – We can see that the market had started to move down to 2017.75(bid)/2018(offer). We can see the Trade Thermometer showed no red and then we got a Trade Circle showing exceptional size. This was mostly buying. So the Thermometer and the Trade Circle showed buying but market didn’t move up. This is seller absorption – sell side limit orders absorbing the buy market orders. You can see that the actual limit orders were normal sized as they were fairly dark. This is a case where the sell side were there but not showing exceptional size (iceberg order), they were hiding their intent. We can see that the buyers could not move price up and the market dropped as they realized that. The move down was fairly swift, indicative of some buy side positions being stopped out.
2 – We move down to an area where we see the white horizontal area on the bid side at 2015. That means very high bids at 2015. That does not mean they are real of course. As we approach that area, we see 3 trade circles at 2015.25(bid)/2105.50(offer). That means exceptional size and with the first 2 we can see the imbalance is on the sell side. We then take a move down to 2015.00(bid)/2015.25(offer) where the large bids are and we see there exceptional selling into those bids. We pop up from there but now the white area is much darker, the liquidity is no longer there. We see our final large circle (balanced trade) after popping up and the market moves down. Sellers tried hard to ‘eat’ that buy side liquidity and were rewarded.
3 – Once again we see exceptional sized bids, this time at 2013. As we get to 2013.25(bid)/2013.50(offer), we can see that the buyers react. The buyers are effectively trying to buy ahead of that area of liquidity. It does tick down into that area of liquidity but only for a brief period and the liquidity does not pull out of the way. The market then moves up to 2014.50
4 – We come back again to that area of high liquidity and again we see excessive trade size and it’s fairly balanced. This is the second attempt at this area of high liquidity and it fails again. The Trade Circle shows a lot of trades and the sellers that are trying to push through that area are offside. That and the fact that this is a second failed attempt means we get a much larger reaction to the upside.
5 – We move sideways for a while with no obvious area of high liquidity on either side. Then we see a fairly large circle with overwhelming selling, that is enough to initiate a breakdown and as we get to the areas of high buy-side liquidity, they just get out of the way.
6 – We hit another area of high buy side liquidity – lots of bids at 2010. Again we see large trade circles, imbalanced to the sell side indicating that this buy side liquidity is real, if it wasn’t real – all that selling would push price down before much volume traded there. Eventually that liquidity gets consumed and we can see that after the first circle, we are seeing no more “white bids”. We then move through that area.
Note that we always advise to use Order Flow in context. This means that unless you are a scalper, then you are looking to take trades in an area you have already decided to do business or where you already have a directional bias and are looking for a good entry area from the Order Flow, following that bias. That’s the context in which you are reading the Order Flow. All Order Flow tools should be used in context, so even if you have a good Order Flow signal but the market is sitting in the middle of a trading range, it may be a poor area to get into a trade contextually.