CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

The Volume Viewer

Description

The free Volume Viewer is one tool in the NanoTrader’s exceptional range of order flow and volume trading tools. The Volume Viewer shows a real-time animation in the chart of the executed order volume on the exchange. Several settings of speed and colour allow the trader to get actionable live information for his trading strategies.

The Volume Viewer is also very suitable for futures scalping. Below you can find an example of a simple trading strategy.

The advantages of the Volume Viewer are:

  • Converts Time&Sales into an animation directly in the chart.
  • Observe and interpret all executed order volume.
  • Observe and interpret the acceleration and deceleration of the market price.
  • Colours and speed adaptable for each future.
  • Actionable information for scalping and trading strategies.

Download a free NanoTrader demo including the Volume Viewer

Click here to activate the free Volume Viewer in your NanoTrader trading platform


The Volume Viewer in detail

The numbers in or above the animated boxes are the number of futures contracts traded on the exchange. A green border indicates trades at a higher price. A red border indicates trades at a lower price. A blue border indicates trades at the same price level.

Parameters of the Volume Viewer.
These are the main parameters of the Volume Viewer. As usual they can be changed directly in the chart. Simply click on the number and change the value.

Covered seconds. This parameter determines the length of the animation visible in the chart. A value of 30 seconds means that all executed order volume of the last 30 seconds is continuously visible in the chart.

Condense milliseconds. There are huge amounts of small trades,  1 or 2 lots per trade. By condensing this trading volume into bigger numbers it is easier to interpret market behaviour.  A value of 5 or 10 milliseconds is usually good for liquid futures.

Highlight volume above. This parameter colours a box orange if a certain volume of lots are traded. By highlighting big volume in a very short space of time the trader can see the market momentum.

Volume to alternate background after.  By setting this value to, for example, 500 the colour of the boxes will change from white to purple and back to white whenever a volume of 500 lots has been traded.  It is an indication of the action in the market. The quicker the colour changes, the more volume is traded.

This example shows a 1-minute chart of the DAX future. The Volume Viewer is set to 60 seconds meaning the Volume Viewer shows all order volume traded in the last minute. The oldest -left- part of the animation shows the order volume which created the initial rise in the market price of the green candle. This price increase is visible as the shadow of the current green candle. But, order volume dried up as indicated by the empty spaces between the boxes. The market is now hesitating.

Futures trading based on order flow and volume: the Volume Viewer.

This example shows the same 1-minute chart of the DAX future but 1 ½ minute later. Order volume significantly increased. There are no empty gaps between the boxes. Buyers are buying at the ask price to get in position.

Volume Viewer in the trading platform.

Note: the slope of the animation is a good indicator of the direction of the market price.

This video gives a quick impression of the Volume Viewer.

 

A scalping strategy based on the Volume Viewer

This simple strategy only trades in the direction of the day’s trend.  The strategy identifies moments when a very large volume of contracts is traded in a few seconds and at higher (lower) prices. Simply put, a succession of two or three orange blocks at higher (lower) prices indicate momentum is building.

When this occurs the trader buys (sells short) at the market price. If the TradeGuard+AutoOrder is activated, the NanoTrader platform will place a target order at short distance. For example 3 ticks (37,50$) for the S&P 500 future. The trader assumes that momentum will carry the market to his small price target.

This example shows a 1-minute chart of the e-mini S&P 500 future. High volume in less than a second  at a successive,  lower price present the scalper an opportunity for a short sell.

Free trading strategies for order volume trading and scalping using the Volume Viewer.

This video shows a scalping trade using the strategy described above.


You may also be interested in these other orderflow and trading volume tools:

Practical implementation

Open a chart of the future you want to trade (new chart button).

Click the ‘add an indicator’ icon.

Search the Volume Viewer by typing Volume Viewer in the search field.

Add it to your chart as a sentimentor.

Set the parameters. The colours used in the Volume Viewer can be changed in the Color Manager.

Download a free NanoTrader demo including the Volume Viewer

Click here to activate the free Volume Viewer in your NanoTrader trading platform