Home academy FireCharts: How to See More Range in the Order Book

FireCharts: How to See More Range in the Order Book

by Keith Alan
Taking Advantage of Binning in High Timeframes to See More Range of the Order Book with FireCharts

In this video, you will learn you how to use FireCharts and the way price levels are binned in various time frames to see more range of the order book. I’ll teach you a method that even works on charts with limited order book history.

FireCharts is a crypto market data visualization tool that combines a thermal map of the order book and order flow (CVD) data into one convenient chart. The volume scale on the left side of the chart helps you identify how much liquidity is resting at each price level in the order book. The brighter the color, the higher the volume. As of 9/26/2022 we offer 2 versions of FireCharts. Our first release, FireCharts 1.0, is available as a stand alone subscription and also comes bundled with our MTF Mean Reversion and Trend Precognition indicators in our Premium Plan.

Since our first release we’ve made significant upgrades to FireCharts. Version 2.0 (Beta) currently lives in our MI Dashboard alongside dozens of other crypto market metrics available to PREMIUM+ subscribers. Both versions support hundreds of BTC and USDT coin pairs and both versions scale price level binning relative to different time frames. There are a number of differences we’ll cover in another video. What’s most relevant to this video is that FireCharts 2.0 (Beta) shows up to 3 years of order book history and the original version shows a rolling 24 hours of order book history. Despite the limited order book history in FireCharts 1.0, the 24 hour sliver of order book history that is shown in higher time frames can be enlarged to show the full depth and range of the order book.

To manage the data and make it easy to identify price ranges in FireCharts, order book liquidity is binned into rows. The price range from the top to bottom of each row or level varies based on the time frame you are viewing. The lower the time frame, the more granular the binning. As you widen out to higher time frames the binning of each row gets larger. There are many benefits to doing this including the fact that it makes it easier to calculate how much liquidity is in the range of any given level or row. Another benefit is that it allows us to display a much larger range of order book data. Widening out to the 3 year chart gives you the maximum range to see how low and how high bid and ask liquidity sits on the order book. This is especially helpful when trying to spot potential resistance, support and trend reversals by identifying where higher concentrations of liquidity are developing at, dissolving from or moving to. To get the broadest view of the order book in FireCharts 2.0 (Beta) simply navigate to the 3 year chart and use the Zoom Box tool from the control panel on the right to frame the active chart and enlarge it to fill the viewing window. To maximize the view in FireCharts 1.0, when you navigate to the 3 year chart you will barely see a sliver of the last 24 hours. That sliver can can be enlarged to show the full depth and range of the order book, simply by using the Box Zoom tool to frame it and fill the viewing window.

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