How the Heatmap Works
The heatmap captures snapshots of the order book at regular intervals and renders them as a continuous color field behind the price chart. Each pixel column represents a point in time, and each pixel row represents a price level. The color intensity at any point corresponds to the volume of resting limit orders at that price and time.- Bright / hot colors indicate large concentrations of limit orders (high liquidity).
- Dark / cold colors indicate sparse order book levels (low liquidity).
- No color indicates negligible or zero resting orders at that price and time.
The heatmap displays limit orders (resting liquidity), not executed trades. This is fundamentally different from cluster volume, which shows completed transactions. A bright heatmap level means orders are waiting to be filled there, not that trades already occurred.
Enabling Heatmap Mode
To switch to heatmap mode:1
Open the preset selector
Click the chart type dropdown in the toolbar (it shows the current preset name, e.g., “Volume” or “Candles”).
2
Select Heatmap
Choose Heatmap from the preset list. The chart immediately switches to heatmap rendering with a candlestick overlay.
Color Schemes
Cluster Terminal provides five perceptually optimized color schemes for the heatmap. All schemes are designed to encode order density as a gradient from “cold” (low density) to “hot” (high density).Choosing the Right Scheme
Opacity Settings
The Opacity control determines the transparency of the heatmap layer relative to the candlestick overlay. This is a critical setting for balancing the visibility of both layers.Adjusting Opacity
Access the opacity slider in the heatmap settings panel by clicking the gear icon in the toolbar when heatmap mode is active.Reading Heatmap Patterns
The heatmap encodes order book behavior over time. Learning to read its patterns is essential for understanding where institutional participants are placing their orders.Bright Horizontal Bands
A persistent bright band at a price level indicates a large concentration of limit orders that has remained stable over time. These levels frequently act as:- Support (when below the current price): Buy limit orders absorb incoming sell market orders, preventing price from falling through.
- Resistance (when above the current price): Sell limit orders absorb incoming buy market orders, preventing price from rising through.
Fading Bands (Potential Spoofing)
A bright band that suddenly disappears before price reaches it means orders were pulled. This is a hallmark of spoofing — a manipulative practice where large orders are placed to influence other participants’ decisions, then canceled before execution. Characteristics of spoofing patterns:- Orders appear at a level, creating a bright band.
- As price approaches the level, the band fades or vanishes entirely.
- Price passes through the level with little resistance (because the orders were never real).
- The pattern repeats at new levels in the same direction.
Moving Bands
Bands that shift up or down over time indicate algorithmic order management. An algorithm is adjusting its resting orders to maintain a target distance from the current price, track a VWAP/TWAP execution benchmark, or follow a moving average. Moving bands reveal:- Trailing buy walls: Ascending bands below price that move up as price rises, providing a “floor” of support.
- Trailing sell walls: Descending bands above price that move down as price falls, creating a “ceiling” of resistance.
- Execution algorithms: Smooth, consistent movement patterns suggest large institutional orders being worked over time.
Stacked Bands
Multiple bright bands clustered within a narrow price range suggest a zone of significant interest rather than a single level. These zones tend to produce stronger reactions than isolated lines because they represent multiple independent participants choosing similar price levels.Diagonal Patterns
Diagonal bright lines on the heatmap indicate orders that are being placed aggressively at progressively higher or lower prices over time:- Rising diagonal: Aggressive limit buying at increasingly higher prices. The buyer is “chasing” the market upward with limit orders.
- Falling diagonal: Aggressive limit selling at increasingly lower prices. The seller is pushing offers down.
Dark Gaps (Liquidity Voids)
A consistently dark vertical band at a price level means there are very few resting orders. These liquidity voids are significant because:- Price tends to move quickly through low-liquidity zones (no orders to absorb market orders).
- Breakouts through dark zones are often swift and difficult to trade.
- Conversely, if price enters a void and then reverses, it may indicate that a large hidden buyer or seller is operating there without showing resting orders.
Heatmap vs. Clusters: When to Use Which
Performance Considerations
The heatmap is a medium-weight rendering mode — lighter than full cluster charts but heavier than pure candlestick mode. The main performance factors are:
The heatmap works well in multi-chart layouts because it requires significantly less GPU and CPU than cluster mode. You can comfortably run 3-4 heatmap panes simultaneously on a modern system.
Settings Reference
Access all heatmap settings by clicking the gear icon in the toolbar when heatmap mode is active.Candle appearance settings (body color, border, shadow, glow) apply to the candle overlay on the heatmap. Customize them in the Appearance panel to ensure candles remain readable against the heatmap background.
Practical Workflow
1
Identify key levels on the heatmap
Look for bright horizontal bands above and below the current price. These are the levels where significant resting orders are waiting.
2
Assess band stability
Watch whether the bands persist over time or fade. Persistent bands are more likely to hold as support/resistance. Fading bands may be spoofed.
3
Combine with cluster data
Switch to a cluster preset for the same symbol on a second chart pane, or toggle between modes. Verify that high-volume cluster levels align with bright heatmap bands for confluence.
4
Trade the reaction
When price approaches a bright band, watch for signs of absorption (high volume with little price movement) or breakthrough (rapid move through the level). Use cluster data for the precise entry.