The Order Book Changes (OBC) widget on TRDR tracks real-time shifts in the order book liquidity, showing increases or decreases in bids and asks at specific price levels. It provides insights into where buying and selling interest is increasing or decreasing, helping traders identify potential support and resistance zones, liquidity imbalances, and short-term market sentiment shifts.
Additions Whenever a new bid (buy order) or ask (sell order) appears in the order book, it’s counted as an addition.
Subtractions When a bid or ask is removed, it’s counted as a subtraction.
Visual Representation
The top half of the widget displays ask (sell) orders, while the bottom half displays bid (buy) orders.
Bars labeled "Added" and "Subtracted" extend outward from the center, scaling proportionally to the highest change value across the entire widget.
Any difference (delta) between additions and subtractions is highlighted using a darker color, making it easy to see significant liquidity shifts at specific price levels.
As new data is collected, old data is automatically removed, ensuring an up-to-date rolling view of order book changes.
Liquidity Tracking The widget shows how buy and sell orders are evolving at specific levels, helping to understand real-time liquidity shifts.
Sentiment Detection Rapid increases in buy or sell orders at specific price levels can indicate growing interest, allowing traders to see market sentiment changes before they impact the price.
Price Reversal Signals Large reductions in orders near strong price levels (support/resistance) could indicate potential price reversals, as support may weaken if bids are removed or resistance could decrease if asks are reduced.
The OBC widget supports different observation periods, each suited to specific trading approaches:
5 Min and 1 Hour Tracks immediate changes for intraday or scalping strategies. Short-term traders use this to monitor instant interest or potential liquidity issues that may impact price within the hour.
12 Hours Covers broader intraday activity. Useful for detecting shifts that could develop into stronger trends. Great for intraday traders needing more context than a single hour.
1 Day Provides a full view of daily order book shifts. It’s valuable for identifying daily liquidity trends, showing where large orders consistently appear or disappear over a full trading day.
2 Days Captures a slightly longer trend, useful for swing traders who want a wider view of liquidity changes to confirm potential support/resistance levels.
4 Days Offers insights into extended market interest and longer-term liquidity trends. It’s essential for swing traders looking at significant support or resistance zones that are forming over time.
Intraday Trading Focus on 1 Hour and 12 Hours for immediate liquidity movements and short-term trends.
Swing Trading Use 1 Day, 2 Days, and 4 Days to identify more stable support and resistance zones and understand longer-term liquidity changes that may affect price trends.
Compare changes within shorter (1 hour) and longer (1 day, 2 days) timeframes to understand if these shifts are temporary or part of a larger trend. For instance, if a significant bid buildup continues over several days, it could indicate strong long-term support.
The Order Book Change Levels (OBCL) is a part of Order Book Changes (OBC) widget and provides a deeper view of order book changes over time for specific price levels. By allowing you to track how buy and sell orders at selected levels have evolved, OBCL offers insights into shifts in market sentiment, supply, and demand that can impact price movements.
Detailed Tracking for Price Levels After clicking on a price level, its changes (additions and subtractions of bids and asks) are displayed horizontally over time.
Visual Indicators Green Bars indicate additions to bids or asks (new orders added). Red Bars indicate subtractions (orders removed).
Summaries The widget displays the total additions, total subtractions, delta and the volume of added/subtracted orders.
Track Order Flow By focusing on specific levels, OBCL helps you understand where the market’s demand (bids) and supply (asks) are increasing or decreasing.
Identify Market Sentiment Shifts Large additions or reductions in orders at specific price levels may indicate shifts in sentiment, as more traders show interest in buying or selling at particular points.
Validate Support and Resistance Regular monitoring of changes at important levels provides confirmation of the strength or weakness of support or resistance zones.
The widget provides the sums of additions, subtractions, and their net difference (delta) at the top:
Total Additions Indicates cumulative buying or selling interest.
Total Subtractions Shows where orders have been removed, possibly signaling hesitation or reduced interest.
Net Difference A positive value means more additions (increased interest), while a negative value means more subtractions (decreased interest).
The same information, but per “custom hour” is placed at the bottom.
By following these steps, selecting appropriate levels, and interpreting additions and subtractions, the OBCL widget provides a powerful way to track evolving sentiment and liquidity on a known support or resistance level.
The OBC Widget on TRDR is an essential tool for traders looking to monitor liquidity shifts, detect market sentiment changes, and identify key trading zones before price moves. By utilizing multiple timeframes and tracking bid/ask imbalances, traders can anticipate price movements with greater confidence, leading to more informed trade execution. 🚀
