how does heat map work ?

i have been looking at the heat map on this site but not sure how it works and what it is showing me could any one explain this for me ?

I have the same problem. Just looks like a mess to me

Heat maps are great because they can show you which pares are trending in a direction more strongly then others.

Few ways you can use the heat map.

1) Is there a pair that DARK Green or Red on the larger time frame? that means its trended strongly lately for a longer period of time. If the lower time frame is changing colors in the other direction, you can use that to look for pullbacks or even large reversals.

2) larger timeframe starting to lightly change colors in a direction making a possible new trend? Is the lower timeframe starting to match the new larger trend? Signal to pull that chart up and look for trend continuation trades.

Hope that helps.

Also be careful with the pip value on heat map.. not all pairs have the same pip value. Having a pair calculated by % percent maybe a better option.

i know the group 'forexearlywarning' discusses the use of heat maps. maybe you can find some good info there

Another very useful feature of this site as a novice trader is the value per pip calculator and the margin calculator : https://www.myfxbook.com/forex-calculators/pip-calculator

Does anyone use a heat map in their trading strategy ? If so , how?

You can use a heat map to identify the trending pairs. So go for the FX pair that has one currency that is going up strongly and one that is going down strongly

Heat map is not a trading system nor an indicator. It doesn’t tell you when to buy or sell. It simply provides accurate information about what market participants are doing. Bookmap’s heat maps may allow you to eliminate this problem. This can lead to a more profitable trading business.

You’ll have only the idea on market; but this tool doesn’t represent any buy/sell signal!

As mentioned above, do not use it as a tool to help you.trade.

jaredtaylor posted:
Heat map is not a trading system nor an indicator. It doesn’t tell you when to buy or sell. It simply provides accurate information about what market participants are doing. Bookmap’s heat maps may allow you to eliminate this problem. This can lead to a more profitable trading business.

Good explanation. Thanks!

The heat map is a kind of currency strength indicator.

I also agree. It gives just simple information about the market.

Heatmaps collect data from websites. The dark-to-light scale indicates which areas of the page are more clicked or which content is more attention grabbing.

Heatmap works by using colors to highlight different factors. They are generally used with candlestick charts, which show the daily or weekly price movements. It is a simple and effective visual aid for traders to see how price moves and where an asset's high and low points are.