Heatmaps approximate key support and resistance zones by summing all of the detected trend lines and applying an advanced heatmap generation algorithm.
There are three ways to visualize support and resistance:
- Horizontal
- Depth
- Trends
Depth and Horizontal mode provide a clearer picture of the strength of the trend at a given price level. Areas of bright red translate to a lot of support or resistance, while lighter red translates to less support and resistance.
You can add Heatmaps in a couple easy steps:
- Click on the Heatmaps button in the top menu bar to activate them.
- Click on the … next to the Heatmaps button to configure the type.
- Click Close to view the chart.
Horizontal Heatmaps
Horizontal maps are calculated from an overlaid grid that calculates cells that have clusters of candles with a sequential number of highs on green candles and lows on red candles. The Horizontal Heatmap then projects these areas of past confluence to illustrate current areas of support and resistance. Horizontal Heatmaps can be used to show or confirm S/R levels on the chart.