Chessboard

The Chessboard chart highlights the price levels in which multiple volumes are placed (and not traded) and which define, in real time, therefore, without delays, which are Supports or Resistances. This graph is used in electronics, in medicine, in all fields where it is useful to check “habits”, and is commonly called a heatmap. We will use it for trading and we call it chessboard.

The color varies from orange, to blue, and finally to light blue precisely to indicate the points where there have been more pending Limit orders: soft colors indicate few volumes, intense orange colors indicate many volumes.

Notice in this example how the two “hottest” price levels represented the Resistance to the advance of the price and then, with the same color, notice how the price was stopped by the Support that the buyers made by placing their orders. The two green and red broken lines in the center of the image are the Best Bid value in green and Best Ask in red.

This image was taken a few minutes after the previous one.

In the image alongside, highlighted in the red circle, you can see how a strong hand placed orders that were immediately executed, both at the price of the orange and the blue level. In the next instant you notice that the color becomes more subdued to indicate lack of volume on orders at that price.