Box Colors
Whale Trade Finder Color Coding Details
Last updated
Whale Trade Finder Color Coding Details
Last updated
Whale Trade Finder uses a color-coding system similar to Auction Finder to help traders identify potential trading opportunities by identifying important support/resistance areas. When the indicator confirms a buying or selling area, the box representing the area will be filled with either all-blue (for confirmed buying) or all-pink (for confirmed selling) color.
If the buying or selling has been absorbed, the box may appear blue or pink with no fill. This typically indicates that the area was a significant area of interest in the past but may no longer be an active buying or selling area. Traders can use Whale Trade Finder to anticipate potential areas of support or resistance in the future by identifying areas of confirmed or absorbed buying/selling pressure.
Whale Trade Finder's color-coding system provides traders with a visual representation of buying and selling areas on a chart and helps indicate the potential bias of the market based on the presence or absence of buying/selling pressure. Whale Trade Finder's intuitive color-coding system make it easy for traders to quickly identify potential areas of interest on their chart.
indicates whale buying, creating strong areas of support
This happens when the algorithm detects that buyers are successfully pushing prices higher.
Whale buying can be seen as a bullish signal, indicating that a large trader has confidence in the asset and expect its price to rise in the future. However, it is important to note that whale buying alone does not guarantee price appreciation.
Large traders, often referred to as a "whales," typically have access to more information and resources than individual retail traders, and their trades often have a significant impact on the market. So if they're buying a significant amount of an asset, it can be seen as a bullish signal.
This increase in price can attract other traders, leading to a further increase in demand and price, creating a positive feedback loop. As such, traders can incorporate whale buying activity into their trading strategies. By identifying significant buying activity, traders can potentially ride the positive momentum and profit from price increases.
indicates whale selling, creating strong areas of resistance
This happens when the algorithm detects that sellers are successfully pushing prices lower.
Whale selling refers to a large trader selling a significant amount of an asset, which can be seen as a bearish signal for the market. Traders can incorporate Whale Trade Finder into their trading strategy by using it to identify whale selling patterns, which can help them anticipate potential downward movements in the market.
Even without having the same amount of capital or access to insider information as larger traders, smaller traders can still benefit from using Whale Trade Finder to identify potential selling pressure in the market. By paying attention to whale selling areas, traders can avoid being caught off guard by sudden market movements.
indicates a large sell's supply has been absorbed, flipping resistance into support
This happens when the algorithm detects that sellers are no longer successfully pushing prices lower.
When a large sell order from a big trader enters the market, it can create a significant amount of selling pressure, causing the price of the asset to drop. As the price drops, some traders might start to see it as an opportunity to buy at a cheaper price.
As a result, buy orders might start to accumulate in the selling area, creating a level of buying pressure. If the large sell order is big enough, it could fill all the buy orders in the market and push the price lower, until new buy orders are created at even lower prices.
This process could repeat until the price reaches a level where there is enough buying pressure to absorb the large sell order. Once the large sell order has been filled, the selling pressure will subside, and the price may start to rise again due to the buying pressure that has accumulated.
If a large sell order is filled over time, it can have a similar effect on the market as a support level. As the market absorbs the selling pressure from the large order, it may stabilize and eventually allow price to begin to rise again, indicating that the selling pressure has been absorbed.
indicates a large buy's demand has been absorbed, flipping resistance into support
This happens when the algorithm detects that sellers are no longer successfully pushing prices lower.
When a large buy order is large enough to absorb all of the available supply at a particular price level, it can cause the price to rise rapidly. However, as the price rises, more sellers may enter the market, hoping to take advantage of the higher prices.
As more sellers enter the market, the supply available increases. If the buying pressure is not strong enough to continue pushing the price higher, the price may begin to fall as sellers begin to outnumber buyers.
As the price falls, traders who bought in at higher levels may begin to sell, hoping to minimize their losses. This can further increase the selling pressure, causing the price to drop even further. As a result, what was previously a buying area can quickly become a selling area or resistance level.
