Let's look at a detailed example of an expanded FX PairView™ Liquidity Window with all available columns shown. This example shows FX PairView™ displaying Liquidity Provider analytics for EURUSD during two different time frames: One Hour (1Hr), and 15 Minutes (15 Min).
Depending upon you subscription package, multiple liquidity windows can be open at once, each set up to display any combination of times and columns as desired. This example shows window #2 of the FX PairView™ Liquidity Window open.
The "LPID" column lists all the Forex liquidity providers identified by a random LPID number, not by their true name. The LPID's are ranked, sorted and displayed in descending order, with the most active participants at the top of the list.
The "Ticks" column displays the directional movement of the most recent Bids and Asks. It shows the change in the current quote compared to the previous quote. The next column with the Blue background shows the percentage of the "Total" Liquidity Provider activity that is attributed to each Liquidity Provider. Naturally, when you add up the percentages from all LP's, it always totals 100%. In this late afternoon example, LP34 is controling 63.74% of all Liquidity Provider. activity. Just the top 4 LP's control almost 95% of the entire market in EURUSD.
The next 3 columns display Market Maker analytics for the last 1 Hour Session. The "(L)" indicates that we are looking at analytics for the "Leaders". "(F)" signifies "Followers", and "(T)" signifies the sum of both the Leaders and Followers activity, and is calculated based upon our patented algorithms.
Now let's look at the row for LP34. We know from the "Total%" column that LP34 is the most active Liquidity Provider for the last 1 Hour Session. It represents almost 2/3 of all of the Liquidity Provider activity in EURUSD. This is the "Big Boy". This is the Liquidity Provider who leads the most in moves to new inside bids and asks. This is the one you want to pay the most attention to.
We clearly see that for the 1 Hour session "1 Hr(L)", LP34 has a small bias to the short side. As a "Leader", "(L)" in quote activity, it has lowered its inside offers 7.92% more than it has raised its inside bids. As a "Follower", "(F)" it has followed other LP's when they raised the inside bid and shows a net imbalance, also to the short side of -8.13%. This makes total sense, because of their strong position as a Leader to the short side, they can't be a follower of their own leadership role. The "Total", "(T)", signifies the sum of both the Leaders and Followers activity, and is calculated based upon the patented PitView™ algorithms.
Let's now look at the Market Maker activity for the last 15 minutes ("15 Min"). The 15 minute columns are identical in concept to the Session columns, except based upon a shorter time span. The minute time frames are a user selectable parameter, and can be set from 1-30 minutes. Here LP34, has a 15 Min bias to the long side as both a Leader and to the short side as a Follower. Is this an early indication of a change in sentiment for LP34? Probably not. Look at what LP12 and LP 09 are doing. LP12 is definitely biased to the short side, while LP09 is strongly long. At this time of day, it is a mixed bag. They are settling up for the day. A look at the Totals Row shows only a small bias to the short side.
The "Totals" row is a summation of ALL Market Maker activity for EURUSD, based upon the user selected session and minute time frames. This summed information for a currency pair is also presented in FX TotalView™. It is how PitView™ is able to compare, rank and sort the strengths of groups of currency pairs.
Of course, all of this needs to be put in the proper context. We do not recommend that the PitView™ Analytics and Liquidity Windows be used as a stand alone trading system. We suggest instead they be used as a conformation and timing tool , and used in conjunction with your current trading methodologies and tools. When your current methodology says go, and the Liquidity Providers line up in the right direction then use the PitView™ Analytics to time your entry and then to help manage your position.
Because the Liquidity Windows show you what the Smart Money is doing, and
When you trade with the Smart Money, you Trade-With-Confidence.
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