Cluster chart in Quantower platform allows you to see the traded volume at each price level and understands the intentions of traders regarding the future price. In the new version, we have changed the settings and added 3 types of cluster chart: Single, Double and Imbalance.
- Single cluster shows only one data type per each bar.
- Double cluster allows you to select two data types that will be shown in each bar. For example, you can select Volume for the first data type and Delta for the second data type.
- Imbalance in footprint chart highlights the price levels where a buy trade volume is excess over a sell trade volume. Diagonal Bid/Ask imbalance displays aggressive buy market orders lifting the offer and aggressive sell market orders hitting the bid.
In the cluster chart settings, you can specify the ratio between buying and selling volumes diagonally at each price level. For example, Ratio = 3 will show on the chart all the imbalances, where the excess of buying over selling will be above 300%.
Additionally, you can set three different levels of imbalance and specify color settings for each of them.
Stacked Imbalances shows zones of multiple consecutive imbalances that occur on bid or ask side. These zones are important support/resistance levels because they are levels where participants aggressively wanted to get into the market. So when the market retests those levels, the same participants may appear again.
For example, when you get stacked imbalances of 3 or more on top of one another it is a good sign of strong pressure in the market and that the market will continue in that direction.
Unfinished auction is also known as unfinished business occurs at bar high/low prices where both buy and sell volumes were traded. The appearance of the unfinished auction indicates a possible continuation of the movement.
