Turn Up the Heat!
Richard O. Zamora III; CMT • May 17, 2019
Heat Maps
Learning Technical Analysis is a never ending journey. Rightly so, because old methods become obsolete as Day Traders begin using them and the “edge” that once existed with a new technique, disappears.
That said, there are a few Technical Analysis constants that remain and provide Traders with an insight that can be used to plan and prepare for battle; and, the use of “Heat Maps” is one of them!
A "Heat Map" is a three dimensional visual representation of data using colors to provide different conditional values. For example, looking at the chart of the NASDAQ, we see this “Heat Map” and our eyes are quickly drawn towards the large green and red “blocks.”
This is good a thing because, in an instant, we can see which market sectors are performing well vs. those that are not. Seeing this heat map gives us an ability to begin our analysis of the stock we want to examine and possibly trade. Quickly, we notice that the Information Technology sector is outperforming the Consumer Discretionary sector. If our intentions were to go “long” in Amazon (AMZN) – seeing “red” would make us think twice. Conversely, our focus for the day would shift towards buying Google (GOOGL) – since this company is covered in “green.”
The point here, is that traditional Technical Analysis indicators do not ALWAYS have to be on a chart using lines and graphs. Indeed, the use of non-traditional methods such as Heat Maps can offer you just as good, trading analysis.
That said, the question remains: “How do you know which Heat Map to look at before you begin trading and can these Heat Maps change during the day?
I can help you answer that through consultation; contact me today!
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None of the content constitutes a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. None of the information providers or their affiliates will advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. This website mentions Mr. Richard O. Zamora, III's trading expertise. This expertise derives not from managed futures but from Mr. Zamora's years of trading and education in the capacity as Principal and Managing Partner of Global Market Raiders LLC. and trades made on its' behalf; Global Market Raiders, LLC does not, at this time, provide managed futures accounts. Global Market Raiders, LLC, does offer, in addition to educational instruction to clients - general and personalized Technical Analysis reports and trading recommendations to retail and institutional clients. This website may contain language that some may misconstrue or find compelling to act in an urgent manner or to believe that there is an exaggerated likelihood of profitability; this is simply not the case, nor intended. Any call to action or perceived high pressure sales techniques are not intentional, misleading, or deceptive. No-one should feel compelled to act without further thought and due diligence. Any language contained herein, is simply made as to allow for a natural organic business flow. Finally, trading is a hard and tough business. There are no shortcuts or trading "black box" that will allow for profits without risk. The National Futures Association (NFA) as well as the Texas State Securities Board (TSSB) exist, among other reasons, to ensure that the public is safe from anyone or company that states otherwise. It is ALWAYS important for the public to research the individuals and companies that offer financial advice and services. And that is why, for your convenience, you will find links to these organizations along with Global Market Raiders, LLC.'s member registration numbers. We ardently invite you to examine us!