4 lessons · 8 min · quiz
🌡️ Heatmap
The order book's history, drawn as colour — where liquidity sat, moved and vanished over time.
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A liquidity heatmap plots resting limit orders over time, coloured by size, with price drawn through it. Where the DOM shows the book right now, the heatmap shows how the book has looked over the last minutes or hours.
Key Insight
A heatmap shows displayed liquidity, which is not a commitment. Its value is in how liquidity behaves as price approaches — not in the bright bands themselves.
Questions this module helps you answer
- What do the colours, bands and dots actually represent?
- What do pulling, stacking and absorption look like over time?
- Why do "walls" so often disappear?
- What are the most common misreads?