Orderbook Imbalance
Orderbook Imbalance is now an add-on
Previously, the Orderbook Imbalance indicator was built into Bookmap as part of the Studies dialog. We have changed it - now you can install and uninstall it like any other regular Bookmap add-on. This gives us the ability to deliver new versions of the Orderbook Imbalance faster.
We also changed how the Orderbook Imbalance widget works. Instead of being located in the top-left corner of the toolbar, it is now placed in the bottom-right corner, close to the subchart and other widgets in Bookmap. We believe these changes will greatly simplify usage.
Orderbook Imbalance Overview
Orderbook Imbalance shows the ratio between the average bid Orderbook size and the average ask Orderbook size.
It helps traders identify whether buy or sell orders dominate the Orderbook.
The ratio is calculated as:
Orderbook Imbalance = (BOS - SOS) / (BOS + SOS)
BV - buy orders size; SV - sell orders size
A positive ratio indicates that buyers dominate the Orderbook, while a negative ratio shows that sellers dominate.
Orderbook Imbalance is calculated based on the Orderbook data visible on the right side of the chart.
When the chart is moved horizontally in drag mode, the widget updates to reflect the new portion of the Orderbook shown on the right edge of the screen.
Interpretation
Traders can use Orderbook Imbalance to detect when liquidity is concentrated on one side of the market.
A strong imbalance can signal potential momentum moves or exhaustion points.
Settings
Orderbook Imbalance can be installed as a regular Bookmap add-on.
The following parameters can be adjusted:
- Price range of imbalance computation – defines the number of price levels used for calculation. It can be set as an absolute number, a percentage from the best bid/ask, or include all levels.
- Lower rate for farther levels – applies exponential weighting to price levels, giving more weight to those closer to the best bid/ask.
- Sound alert – sets an audible alert when imbalance reaches a configured percentage.
If the ratio is positive, the number appears in the buyer color; if negative, it appears in the seller color.
FAQ
How much does the Orderbook Imbalance indicator cost?
The Orderbook Imbalance indicator is part of the Bookmap Global+ package.
You can try it for free with any package in replay mode or with a delayed instrument.
Installation
Please note that the Orderbook Imbalance indicator is only compatible with Bookmap version 7.4.0 build 11 or higher.
This add-on uses the new Add-ons Manager feature, which simplifies both installation and updating.
If you would like to learn more about the Add-ons Manager and how it can improve your experience, please visit the following page.