#Japan #Tokyo #Trading Strategies #OANDA Securities #Order Book Tool

OANDA Securities Launches Innovative Historical Order Book Tool

OANDA Securities, based in Tokyo, has unveiled a new tool designed to advance the trading strategies of investors. This tool, titled 'Historical Order Book Changes,' leverages the trading data from the global customer base of the OANDA Group. It visually represents the evolution of open orders and open positions at specific price levels on a chart, allowing investors to intuitively grasp the underlying investor sentiment and changes in supply and demand balance, beyond just price movements.

Background of Development

Traditionally, order books provided only a snapshot of data at a specific moment, making it challenging to track the fluctuations in orders and the skew in positions over time. Responding to numerous requests from global clients, including those in Japan, who wished to view order book data over time, OANDA Securities developed this new tool.

Analytical Features of the Historical Order Book Tool

The tool enables users to switch between various assets and timeframes to analyze two crucial indicators over time: open orders (unfilled orders) and open positions (unsettled positions).

Open Orders Analysis

• - The historical trends of unfilled orders are displayed as the net value of buys and sells. This retrospective view allows investors to determine if specific price levels acted as strong resistance or support, aiding future price milestone predictions.

Open Positions Analysis

• - Visual representation of the skew in unsettled positions held by market participants is provided. By analyzing the balance between buying and selling pressures, as well as the accumulation of unrealized gains and losses, investors can derive insights into future price movements and market conditions.

Key Features of the Historical Order Book Tool

1. Heatmap Visualization: Changes in orders and positions are visualized through a heatmap, positioned behind candlestick charts, representing the net balance of buys and sells rather than total amounts.
- Blue Color: Indicates price levels where buy orders and long positions dominate.
- Orange Color: Displays price levels where sell orders and short positions are more prevalent.
- Color Intensity: The depth of color represents the magnitude of imbalance—darker colors illustrate greater disparities.

2. Discovery of Solid Support and Resistance: Observing the trends in open orders allows for retroactive verification of whether concentrations of orders at certain price bands functioned as strong barriers or support, thus informing future reversal points in price.

3. Analysis of Unrealized Gains and Market Sentiment: The tool facilitates an understanding of where market participants hold positions and the extent of unrealized gains, providing deeper insights into market conditions and the potential for sudden price movements due to stop-loss triggers.

Specifications and Data Offered

• - Currency Pairs: Includes major pairs like USD/JPY, EUR/USD, AUD/JPY, and more.
• - Data Display: Open orders and open positions.
• - Timeframes: Analyzed on 1-hour or 4-hour intervals.
• - Usage Environment: Accessible via web browsers.

About OANDA Securities

OANDA Securities is a member of the globally operating OANDA Group, offering services in FX trading, index CFD, and commodity CFD trading. Through "OANDA Lab," they are committed to enhancing tools and indicators that provide valuable information for investors.

Representative: Yoshiharu Yanagisawa, CEO
Location: 10th Floor, CIRCLES Hirakawa-cho, 1-3-13 Hirakawa-cho, Chiyoda-ku, Tokyo 102-0093

Disclaimer

The offered financial products are not guaranteed in terms of the principal and profits. The potential exists for significant losses that may exceed the amount of deposited margin due to leverage. Investors are encouraged to thoroughly review trading agreements and understand the risks involved before initiating transactions.