What are Heatmaps?

Heatmaps are visual representations that present data based on color and size.

Traditionally, Heatmaps include all the stocks within the S&P 500 or Nasdaq. The size of the boxes is correlated to the market cap of each stock, and the color change represents the price percentage change of the current day.

Deepvue has expanded HeatMaps to allow full customization, making them a powerful tool for traders looking to track market rotation and spot trends.

In this guide, we’ll break down how to use HeatMaps effectively and customize them to match your trading style.

Get Quick Visual Insights Into Market Performance

Heatmaps provide a quick visual representation to present stocks and groups that are performing the best by looking at an entire market in one glance.

Using visuals will help reduce the time needed throughout your daily routines. At some point throughout the day, you will screen for strength in individual stocks, look for outperforming groups, and look for any other market sentiment signals.

The default Heatmap that most traders are familiar with includes all stocks in the S&P 500. Each box size is related to the Market Cap of each stock, and the value displayed is the current Daily Percentage Change.

At first glance above, you can identify that the mega caps are mostly flat on the day with TSLA outperforming. You can also quickly see that the healthcare group is drastically underperforming (colored pink).

Go Beyond the Major Indices

Heatmaps are a fully customizable feature within the Deepvue Dashboard. Instead of looking at stocks in only one index, you can create a heat map for any watchlist or screener.

Change the stocks in your Heatmaps to look at any personal watchlist including:

By customizing your Heatmap, you can filter out noise and focus only on stocks that align with your trading strategy.

Sort and Customize Data to Fit Your Strategy

More customization is possible by changing the data you use to organize your Heatmaps. Instead of just Market Cap and Percentage Change, you can adjust how the Heatmaps is configured.

Personalize your Heatmaps by changing data to:

Custom-tailor a Heatmap to help you focus on stocks that fit your trading system. Use any available data to change the value displayed or the box size in your unique Heatmaps.

Heatmaps Examples

Tracking Percent Change From Open & Run Rate

Price and Volume are the two driving forces of all stock moves.

As the market progresses throughout the day, look for stocks that have a large Percentage Change From The Open and have an increasing Run Rate.

This Heatmap of the S&P 500 displays the Percentage Change From The Open with boxes sized by Run Rate allowing you to determine what stocks are up (or down) and have expected volume to be above average. Visually identify which stocks have an expected increase in volume while looking at the price percentage change from the open.

Analyzing Price % Change for the Current Day & Week

When following the leading stocks, make sure to look for stocks that have large percentage gains on both the daily and the weekly time frames.

Throughout the day compare stocks that have a large percentage increase with their weekly performance.

This Heatmap utilizes the Deepvue Universe Preset Screen instead of looking at the overall index and displays the Daily Percentage Change, while the size of the boxes is related to the Weekly Percentage Change. Visually identify which stocks are performing the best on the weekly time frame while looking at how they are trading on the current day.

Measuring Daily Closing Range & RMV for Volatility Insights

Traders analyze the Daily Closing Range (DCR), the difference between the highest and lowest price throughout the trading day, to gauge the strength of the day’s performance. The Relative Measured Volatility (RMV) measures trading volatility over a certain time frame.

Deepvue’s custom Heatmap allows users to create unique comparisons using data that will help them identify the strongest-performing stocks.

This heatmap utilizes the Deepvue Leaders Preset Screen and displays the DCR, while the size of the boxes is related to the RMV. The larger boxes signify that volatility is expanding and the value displayed quickly reveals a strong closing range.

Using Price % Change MTD & YTD for Long-Term Trends

Position traders identify leading market themes by analyzing top Year-To-Date (YTD) performers.

By simultaneously evaluating Month-To-Date (MTD) performance, you can smooth out the short-term price fluctuations giving you a clearer picture of the prevailing market trend.

This Heatmap of the Nasdaq 100 displays the MTD Price Percentage Change with boxes sized by YTD Price Percentage Change identifying the biggest yearly moves and focusing on the current month. The larger boxes signify there has been a significant move for the year and the value displayed highlights the most recent month’s performance.

How to Create Your Heatmap Dashboard

Heatmaps are part of the fully customizable Dashboard module within the Deepvue app.

Navigate to the Dashboard Menu and create a New Dashboard.

Name your new Dashboard, Add the Heat Map App, and resize the app to fit your workspace.

How to Customize Your Heatmap Dashboard

There are three drop-down menus to help you customize any Heat Map to cater to your individual trading needs.

Experiment with the different data available to customize a Heatmap for your personal needs. Every data point can be assigned to either the displayed value or the box sizes.

Key Takeaways

Heatmaps provide a quick and easy way to identify trends and find strong-performing stocks within the overall market.

Deepvue offers fully customizable Heatmaps to reflect your personal trading style.

Narrow down the basket of stocks that you are looking at by selecting your favorite watchlist, screener, or any preset available. Adjust the values displayed and modify the size of the boxes by changing the available data provided.

Go beyond the basic Heatmaps that look at only one index and market cap. Deepvue’s Heat Maps let you personalize your view while concentrating on the stocks and data points that align with your trading style.