We've shared that price moves as a result of interactions between the market orders and the resting limit orders. We call this interaction the order flow and our flagship software, AlphaReveal, allows the trader to see this interaction, this dance, at a detail never before possible. Some traders are new to these concepts and don't quite understand how they work.
At the most basic level, our program shows supply and demand in real-time. It is really that simple. The resting limit orders can be viewed as supply while the transacted market orders can be seen as a form of demand. Chart traders can see where historical areas of supply and demand were by looking for areas of support and resistance. The question is will those same areas continue to be support and resistance in the future? That's where our software comes in by showing the trader the dynamics that are working "underneath the hood" and that allows traders to make better decisions.
Friday, March 01, 2013 12:15:00 AM