In trading, one of the most popular tactics is volume trading. For its use, special technical indicators and tools have been developed. Speculators are in great demand in the “stock market”, which allows them to analyze the financial market and suggest its future direction. The main advantage of this tool is the ability to track the positions of large players, on which changes in market quotes depend.
What is a stock market?
This tool is on every platform or platform where trade transactions are made. For example, on MetaTrader 5 it can be found in the section of the site’s main settings (market review) called “glass of prices”, and on the Quik platform it is located in the “trade - orders” tab.
“Exchange Cup” is a table in which limit and market orders from all participants of the financial market are reflected with any changes in real time. This is the most convenient way to identify large contracts and, depending on the trading strategy, open buy / sell positions or, conversely, exit the market and close orders. It is convenient to use in trading, as it is installed on the chart of market quotes and the trader does not have to open any additional tabs.
Glass Functions
Its main purpose in trading is to monitor market sentiment. The “stock market” and its analysis allow the expert or trader to understand what the situation is in the market.
Main functions:
- statistical data (visibility of orders from all market participants);
- determination of limit orders of large players;
- reflection of spread size indicators ;
- analysis and forecasting of quotes.
Using this tool, you can assess the market situation, the state of the financial market (flat or trend movements and impulses), who has more buyers or sellers on it, identify the most favorable moments for opening a position, determine support and resistance levels, and also see large applications with large contracts.
Tool description
The future profit of the trader depends on the proper use of the glass. A beginner who decides to use this tool should understand what a “stock market” is, a detailed description of which can be found in any trading guide, and how it works. In addition, he will need to learn to analyze the statistics obtained on him and use them in his work on the financial market.
"Glass" looks like a table in which limit orders of all market participants are displayed, as well as the current quotes indicator. All of them are divided into two categories:
- Orders for sale, which are in the red box "glass".
- Limit purchase orders - in the green field.
"Market glass" has a scale in which market quotes are displayed. The transition between the red and green fields is the zone where the values ​​of the indicators are currently located, that is, at market prices.
In the glass, you can see absolutely all limit orders with different volume of contracts, as well as spread values ​​that change periodically. It will not take a lot of time to study it and any beginner will be able to deal with it, since it is based on just a few indicators: a quotation scale and two fields for purchases and sales with a spread display.
Glass analysis
For trading in the financial market, systems have been developed that use this tool. The “stock market” and its analysis allow traders using special techniques to predict changes in quotes and find promising points for entering the market.
All applications are distributed by contract volume:
- The placed limit orders from large players have a value of over 5 thousand contracts. These are very significant applications, and they need to be analyzed first. It is they who change the direction of the market, create impulses and trends and carry out large quotation movements on it. Professionals advise beginners not to trade at this time, since the slightest mistake can destroy the deposit of an inexperienced player, as a result of which he will receive a Margin call.
- Applications for up to 500 contracts are placed by average market participants. They also need to be looked closely, as they, albeit to a lesser extent, but affect market changes.
- Small orders are indicators up to 50 contracts. Such positions do not reflect on any changes in quotations at all and are considered insignificant or neutral bids.
An equally significant role is played by the relationship between “passive” and “aggressive” types of applications, which also needs to be taken into account and carefully studied during market analysis. The first variant of positions determines the support / resistance levels on the chart. “Aggressive” applications are put forward by large market participants, with the help of which movements occur and trends are created on it.
Before opening each position, it is necessary to carefully study all changes in the indicators of the “stock market”, evaluate the market situation and analyze it using analytical and statistical data.
Principle of operation
To really make money in the financial market with this tool, you need to learn how to use it correctly. First of all, you need to understand how the "stock market" works and correctly apply it in trading.
Any bidder can open a position at the right moment for him at market prices or place a pending order at certain quotation indicators. Such orders will immediately be displayed in the “glass”, where in the future traders and analysts use them for analysis.
The principle of operation of the glass is quite simple: traders place limit orders at current prices, which are immediately displayed in it. Positions opened at market quotes are reflected in the middle of the “glass”, in the transition zone between buying and selling. The farther the order is submitted from current prices, the more profit it will bring to the trader.
To quickly place an order, you need to use the "one-click trade" function. Initially, it must be configured, and in the future, all parameters will be saved, the opening of applications occurs instantly. Especially important are such characteristics in Scalping and short-term deals, where every second is precious.
The principle of operation of the "glass":
- Determine the most profitable course to open a position.
- At the selected quotation level, set a limit order using a pending order.
- After reaching the desired level, the position will be open.
An order is closed automatically if traders use Take Profit or manually after reaching the number of points necessary for the speculator.
Using the glass in trading
Traders use this convenient tool in trading to open deals and when forecasting changes in market movements. The main thing is to understand how to use the "exchange glass" correctly and get more profit with it. It is used both in analytics and in various trading strategies, for example, in techniques for rebounding or breaking quotes, during flat and trend.
Using the “glass” is very simple: you need to use it to determine where the limit orders of large players are set, select the level of quotations with a high probability of profit and place a limit order.
"Market glass" is an excellent assistant to the trader. It allows you to maximize the use of statistics and make full use of analytics, as well as determine the positions of major players and other market participants.