volofinance Trading Strategy – Market Sentiment Analysis Tool: “Advanced Order Book”

Among volofinance’s “3 Technicals, 2 Analyses and 1 Volume”, FXSSI’s advanced order book tool is used in the market sentiment analysis technology of “2 Analysis”. The beauty of this tool is that it allows our trading strategists to view the trading flow of the entire foreign exchange market.

Using these data and information, volofinance can make an accurate estimate on the market sentiment to build an advantage. Quoting the well-known fate of Warren Buffett: “Be afraid when others are greedy, and be greedy when others are afraid”; when we understand the trends of what other traders are buying or selling, we can analyze and judge the market trends and choose the most ideal time to enter the market.

FXSSI Advanced Order Book

The mainstream trading tools on the market provide a basic Order Book system, which only displays the volume of limit orders, it cannot show market sentiment carefully and clearly. What’s more, the foreign exchange market is a large decentralized market, with floating pricing between major exchanges and banks, and the data of limit orders alone cannot provide enough information to accurately predict market trends.

The Extended Order Book advanced order book tool used by volofinance will display the following 8 angles of data:

  1. A pending buy order below the market price
  2. Sell pending orders higher than the market price
  3. Breakthrough buy pending orders above the market price
  4. A pending sell order below the market price
  5. An open position
  6. Open sell orders that are higher than the market price (sell orders that are profitable)
  7. Open buy orders that are higher than the market price (buy orders that are losing money)
  8. Open sell orders below the market price (buy orders that are losing money)

The above data can more clearly allow traders to understand market sentiment and judge market trends based on international news or the economical capabilities of countries. And these data will be snapshot every 5-20 minutes so that traders can cross-compare the market trends from the past and present. Furthermore, this will also allow traders to eliminate false market trends, stop loss and take profit from open positions. Pinpoint the entry timing of the bull and bear market, and develop a trading strategy.