Liquidity Heatmap

A Liquidity Heatmap is a graphical representation where data is visualized through color changes, used in order flow analysis. This map shows the density of buy and sell orders at different price levels during a specific time period.

Typically, a Liquidity Heatmap is presented as a two-dimensional grid. The vertical axis represents price levels, while the horizontal axis represents time intervals. The color scale indicates the activity in order flow:

• Hot colors (orange, red): Indicates high-density buy or sell orders.
• Cool colors (purple, blue): Shows lower order density.

This tool provides traders with an important visual guide for understanding market liquidity and order density at critical price levels.