The 4 best features of the Big Trades indicator

In order to assemble such trades back, a special algorithm is required. Namely this algorithm is in the basis of the Big Trades Indicator in the ATAS platform. This indicator sums up a big number of similar trades into one trade and transmits its signals to the chart in the form of a special mark.

In the example below, the indicator marked all areas on a Si futures, where big trades took place, with colored squares. Green color marks the buys and the red one marks the sells.

Thus, important areas are already highlighted in the chart, we just need to correctly interpret the nature of these trades. For example, whether it was a position gaining or fixation of profit/losses.

In order to add the indicator to the chart, go to the Indicators menu item, select it in the list and press Add.

Let us consider the indicator settings:

Set Alert in order not to miss an important moment. Then you will hear a sound signal when there is a big trade.

The Visualization section contains parameters of the indicator display in the chart. You can select sizes of display and pattern type:

The Filter section, by default, envisages automatic filtration for the minimum and maximum volume, which is displayed. But if you uncheck the automatic filter, the platform will consider only those volumes, which you would specify. In the automatic filtration mode, the indicator itself identifies volumes with consideration of specific features of each instrument.

In the Filtration by time section you can set time limits, within which it is preferable to display the indicator, there will be no indication outside these limits.

The Colors section allows setting display colors for the indicator.

Here comes the most interesting part. How to use this indicator in trading.

To begin with, we do not know beforehand whether a major trader opens or closes his position. We have a specific price area at our disposal, which fixed a big initiative trade. That is why, an important task is an additional data collection for understanding what the intention of the managed money is.

• First, look how many price levels were covered by the Big Trade. If the price covered several price levels (the value could be from 2 to 20 and bigger for various instruments), we may state that the big trade did not meet any limit resistance and there were no icebergs or other interests in holding the price in the whole area.

• Second, it is necessary to note whether there was a limit volume in the specified section. The DOM Levels indicator, which fixes those areas in the chart where a big limit volume was noticed, will help us to do that. If a big trade met the limit resistance and was stopped by it, we can note that there is an opposing party.

• Third, note where the price moved after emergence of a big trade. If the price moved towards the trade, we should note absence of opposition. But if the price moved into a reversed phase, this, most probably, is a sign of a trap, in which the big trade fell. The market is full of such traps.

• Fourth, if your broker transmits an open interest, check whether the open interest value increased or decreased. The open interest value allows splitting big trades into position opening and position closing.

Indicator tricks lie in a method of interpretation of big volumes in a chart. We will show four variants of interpretation. The described logic could be similarly applied to other instruments/timeframes.

Example 1. A big sell trade covers several price levels and moves the price in its direction, while the open interest increases.

Conclusions: a major seller expects price decrease, opens a position and trading towards a big trade, most probably, will bring profit.

Example 2. A big buy trade opens a position, does not move the price in its direction or moves it slightly, however, the trend develops in the opposite direction.

Conclusions: a buyer does not control the price and suffers losses, the trend will develop against the buyer and it is expedient to open a position in the opposite from the big trade direction.

Example 3. An upward trend, a big buy trade covers the limit volume, the open interest decreases and the price moves further.

Conclusions: a major seller, who stands against the trend, expects further movement and fixes the loss with a buy when there is a sufficient volume of a limit seller. The situation is uncertain and a trader should refrain from opening a trade until the trend is confirmed.

Example 4. A big sell trade covered several price levels, the price moved away from the level when the seller’s level was tested, the seller holds his positions.

Conclusions: a major seller expects continuation of the price decrease and trades towards the big trade should be opened when testing the seller’s level.