A market heatmap summarize the SGX market in two aspects:
- stocks price change (%)
- value traded (relative)
The color intensity indicates the change in stock prices. The brighter it is, the greater the change in price. Based on the color, you can easily identify the losers (red) and winners (green).
The size of the box represents the $ value traded relatively to other stocks in market. A large box indicates the trend and hold more weight on it price change.
How do we make use of the map?
- I will spot bright colors (either green / red) with big box size to identify top counters of the day.
- I will then drill-down further on the chart to determine the trend of the stock.
- After identify the trend, I will then look for entry opportunity based on the entry strategy you are comfortable with.
Feel free to share your views.