Market Stat for estimating market volumes

Volumes are an essential part of market analysis. It is very good if you can analyze the volume of one exchange, but it is even better if you can look at data from all exchanges. To do this, we have created a Market Stat tool that allows you to see aggregated volumes, delta, market balance and assess liquidity.

Description and use of the tool

The Market Stat tool consists of three blocks:

1. Delta and average balance
2. Comparison of volumes
3. Volume and average balance

The indicators in each block are aggregated. Their values include data from many exchanges. The following types of data are visualized:

• Volume – the amount of buying and selling for the selected timeframe, in BTC.
• Delta – the difference between buying and selling, in BTC.
• Balance – the ratio between buying and selling, in %.

The following index groups are available for analysis:

• BTC/STB
• BTC/FIAT
• BTC/MONEY
• ALT/MONEY
• ALT/STB
• ALT/FIAT
• ALT/BTC
• ALT/ALT
• STB/STB
• STB/FIAT
• FIAT/FIAT

Now let’s take a closer look at what useful information we can get from each block.

Delta and average balance

These charts are used to assess the overall market picture. The average balance shows which asset group is currently in demand among active participants. The balance can be used to determine the capital flow from group to group. The delta shows in more detail the size of the overshoot and the direction of the capital flow.

The indicator is calculated in % of the index groups based on the balance between buys and sales.

• If the blue line rises, market buying predominates, if it falls, market selling predominates.
• If the histogram bar is red, there are more market sales than buys. If the bar is green, there are more market buys than sales.
• The cumulative delta shows the delta data accumulated over the maximum visible range.

Market Stat charts have a scale with left and right markings. Marking to the left shows the histogram values and the marking to the right shows the average balance values.

Comparison of volumes

This block helps you visually determine the level of interest in a particular group in comparison. The multiline chart and pie chart show the total volume of all asset groups.

All the same, indexes are available for analysis, as well as data types by volume and quantity.

Volume and average balance

This block helps you visually determine the level of interest in a particular group in comparison.

The chart visualizes the total volume of transactions. The line chart (blue line) shows the average balance. The scale marking to the left shows the volume values, and the marking to the right shows the average balance values.

How to use Market Stat in trading

The chart shows the Delta and the average balance:

1. There were large sales during the night, followed by no significant buys during the day, but there were clearly large sales.
2. On the morning of the 21st, the delta of both buying and selling fell sharply.

The fact that selling clearly dominates buying suggests that selling will continue.

Let’s look for arguments in the cluster chart as well. As we can see, the main Binance exchange is experiencing heavy overnight selling. That’s two arguments in favor of continuing the decline. Let’s see the result.

The decline was more than 3% in a short period.

And also look at the block of Comparison of volumes and how the volume dynamics have changed.

1. Before entering the trade, volumes, and volatility were very low.
2. When the move started, volatility and volumes started to increase.

This again suggests that you should always enter when volatility is low and exit when volatility is high.

If you have aggregated data, you can quickly assess the current market situation. This is exactly what the Market Stat helps us with! You can learn more about how to use the tool in the 13th lesson of the second level of training.