Creating a Dynamic Heatmap for the Indian Stock Market

One can mostly classify traders as a mean reversion trader (i.e. who bets on the reversal of the trend) and as a breakout trader (i.e. who bets on the direction of the trend).

• It is impossible to track all the stocks from the Watchlist in one glance. Here is where Heatmap plays an important role. Since the price of the stock changes every movement, a heatmap shows a consolidated view of what is happening on the stock at the moment.
• The breakout traders scan for the stocks that are gaining momentum and the stocks who already made a huge move and can make even more strong moves in the same direction.
• Vice versa, a mean reversion trader will tend to scan the stocks that went up higher for the trade and will bet on the retracement when there is a sign of weakness. (In Entropy, We use Bollinger Bands to validate when to enter.)

Although the heatmap looks beautiful, there are dozens of problems –

• There is a glitch in the value area. If you keep the chart open for some time, it will go weird.
• This whole concept of masonry (different sizes based on the percentage) is not at all ok. Sometimes, We look at the stocks that didn’t move at all in the middle of the day for possible breakouts. Right? (For if all the stocks from the same…