Xena Market Barometer
About the Xena Market Barometer
The Xena Market Barometer is a complex analytical tool inspired by Bloomberg’s instruments and traditional market practices. It consists of interactive charts which reflect the mood of bull and bear conditions for not only single sites but also on the entire market. The combination of these instruments help traders to make informed decisions and reduce the amount of guesswork.
Currently, the Xena Market Barometer aggregates data from four exchanges: Huobi, Kraken, Coinbase, Bitstamp and Bitfinex. The data is represented by volume, bids, asks and more, with the option of seven graphs, a smart tape and a news feed.
The Long/Short Ratio graph shows the difference between the total volume of bids and total asks within the order books. Through the graph users can visualize the dynamics of certain changes in supply and demand and determine key trends.
This graph can be used as an additional filter when making decisions. For example, it can be used to filter trend transactions when there is a strong discrepancy between this chart and the Bitcoin price chart. If the price goes up, and the long/short ratio goes down, the strength of the bulls is likely to be waning, and a reversal is near.
Market Profile & Point of Control
The Market Profile is a horizontal histogram which shows the distribution of volume by price within a selected timeframe. The higher the total volume of trades (or quantity, depending on the setting) at a certain price, the longer the corresponding bar on the histogram is. The longest bar corresponds to the Point of Control - the point at which the largest volume or the largest number of transactions took place within a selected timeframe. By looking at this chart, users can visually determine the nature of reversal price patterns and find an optimal point to enter a position. In particular, a large volume of trades may correspond to a level of support or resistance.
If we pay attention to the height of the histogram, we can immediately assess the current market volatility and outline the duration of time in which the price is likely to spend. A narrow range on the histogram suggests a flat market, and in such a case, we have to be patient until we can catch a profitable movement.
It is also worth paying attention to the emergence of a new Point of Control, which can become a trigger for strong price movements.
Bid/Ask Sum within 0,5% from the price
Total bid and ask volumes are displayed on separate line graphs and show the dynamics of volume changes within order books. A special characteristic of this chart is that it only uses a certain range for calculations — 0.5% on each side of the current market price. This approach allows users to spot short-term trends and react to changes in market trends more quickly.
Special attention should be paid to the intersection of red and green points and the differences between them - they help to determine where the short-term volume is concentrated. If the red line crosses the green from the bottom up, then the bears are prevailing over the bulls. If the green line crosses the red in an upward direction, this indicates a rising pressure from the bulls.
This chart allows users to visualize volume from a different angle. It focuses specifically on volume bursts and their structure. Every time the volume on a market is significantly higher than average, a pie chart with the distribution of buy and sell volumes appears in the burst range. Volume bubbles help traders better understand the cause of price movements and help to predict short-term inertial price changes.
Oftentimes, volume bubbles occur in areas where there is a certain level of support or resistance, indicated by a large volume. In such pie charts, we can see to what extent sellers or buyers are attempting to break through this level.
Thus, if such a chart forms and the price level is not surpassed, we can assess whether this level will survive the next price onslaught by simply looking at the distribution of buy/sell orders. At the same time, it is necessary to take into account information from other charts (for example, the Volume Heatmap), because market conditions change every minute, and any price point can suddenly fluctuate to different volumes.
Combined Order Book
The total order book for all exchanges is presented in the form of an area chart. It shows the total volume of orders at each price within a 10% range. The graph presents an altitude indicator similar to that on the dashboard of an aircraft, both in purpose and appearance. The indicator shows which direction the volume is heading and allows traders to determine which side will face the greatest price resistance.
The graph assists traders in determining the general trend of movements and to determine the best direction to open positions. If we see a strong preponderance of demand over supply, then we should refrain from opening short positions.
The Printline graph allows users to monitor the history of large volumes which have formed a particular pattern and to see, in real time, how certain volumes disappear at specific price levels under the influence of market powers.
The graph consists of two elements: the BTC_Reference index bars, which display the aggregate data on the Huobi, Coinbase, Bitstamp and Bitfinex exchanges, and the red-yellow lines, which show the current peak volume levels within the exchanges.
The BTC_Reference index, underlying this and subsequent graphs, consists of BTC prices from four exchanges, and it is averaged by a complex adaptive formula reflecting the actual price of an asset. The lines show the total volume of orders of the four exchanges at a certain price. The more red the line is, the greater the volume is at that level. The larger the volume is, the less likely it is to be breached. So, by looking at the chart, users can easily determine the levels between which the price is heading.
The chart is especially useful for scalpers and intraday traders, particularly with the ability to avoid false signals and open or close positions at the right time.
The background color of this graph symbolizes the distribution of volume by price levels over the previous two hours. Bright areas represent prices at which the trading volume exceeded the average volume by the variance. Darker areas correspond to prices which the volume of trading was about average.
If the background is only present on one side of the price chart, the price will likely follow the path of least resistance towards the uncolored side. During trends, the background may indicate levels where the price can possibly stop, representing good points to enter a position. Bright colors highlight strong levels of support and resistance, in which case the price is likely to stop before continuing its movement or making an U-turn.
The smart tape combines standard information about orders, rates, transaction times, prices, and volumes with advanced indicators integrated directly into the table.
Additionally, the tape reduces noise due to the aggregation of small transactions. For example, if there was an iceberg in the order book or even a single large order from which small portions were “bitten off” over a short time, the total volume would be shown as one trade.
The improved classic market analysis tool helps users determine entry moments at a glance before any sharp market movements. Each asset price has its own specific behavior, so the purpose of this indicator involves the independent identification of patterns and the study of volume to determine optimal strategies.
The ability to use tape transactions is a rare skill, but at the same time, it is very useful, helping traders to gain a better understanding of price movements and clearly capture the moments before price impulses. We can use this tool instead of charts and be like the cult traders of the bygone era.
The release of news can heavily implicate the market, so it is always imperative to remain up to date. The news feed is designed as such that the user immediately sees the most important topics likely to affect price movements. Each news story is ranked by importance and states the cryptocurrency to which it is related, thus allowing traders to always ascertain the context of events.