Daytrading Market analysis
Level of Interest
Use the daily, professional market analyses to your advantage. Our experts with years of experience identify precise price areas of institutional interest. Maximize your trading potential and use these high-quality trading locations for your individual strategies.
This is what Level of Interest can do
The art of market analysis
The modern futures markets are dominated by institutional trading algorithms. To gain an advantage as private retail traders, we need to understand how these market participants trade and where they are active. One key to success is to follow the activity of the algorithms, but to do it in a completely different way – humanly!
Oliver Sparing and his team of experienced traders and analysts have perfected the art of market analysis and make it accessible to everyone with the Level of Interest software. Every morning before the start of the European trading session, we analyze the markets for you and define zones in which strong institutional trading interest can be expected.
Not only can we pre-define the most likely price direction, but by combining different perspectives and factors we can identify locations where the price is most likely to react. Benefit from our years of experience in market analysis and synchronize our levels in the trading software of your choice.
Advantages
MARKET CONTROL
Find out who is in control of the market – buyer or seller
Level of reaction
Get levels at which the market will react with maximum probability
Strategy development
Refine your existing trading strategies or develop completely new trading approaches
Insider view
Recognize the activity of institutional market participants and follow their lead
Multifaceted analysis
View the market from different angles and combine them for ideal trade entries
Algo benefit
Use the algorithmic activity of institutional traders in the market to your advantage
7 Analysis components
Efficient market analysis by combining various factors
Gamma Hedging
Institutional market makers who provide liquidity in the options markets need to use the underlying markets to hedge their risk. To do this, they buy and sell the underlying instruments such as shares, ETFs or futures directly and thus exert a major influence on the price performance of the respective market. If we have the knowledge of where option dealers need to become active in order to build up and adjust their hedges, we have enormous advantages. We can predict at which prices and in which direction market makers will trade under certain conditions.
Fibonacci Retracements
The analysis of Fibonacci numbers is one of the oldest sub-factors of technical chart analysis. Nowadays, many private retail traders mistakenly smile at Fibonacci retracements and assume that they no longer have any significance. The opposite is the case! Countless institutional algorithms are programmed on the basis of Fibonacci levels and designed to become active at these prices. In combination with various other factors, these levels can therefore still be regarded and used as powerful resistance and support zones.
Darkpools
It is in the best interests of institutional market participants to conceal their activities as much as possible and remain unrecognized. Dark pools are private yet state-regulated trading venues that are exclusively available to traders with large wallets. Here they can carry high volumes anonymously and outside the official order book of the major exchanges without attracting attention. Nevertheless, these positions must be disclosed to the CFTC at the end of the day, which gives us the opportunity to analyze these trading activities on the following day and use them to our advantage. Pullbacks at zones of high dark pool activity usually offer great trading opportunities.
Volume- and Market Profiles
Analyzing the market structure using volume and market profiles is the bread and butter of any professional trader. We can use these tools to track the auction process and clearly identify where institutional market participants have been active in the past. Knowing at which prices the market price was deemed fair and where buyers or sellers ultimately prevailed over the other party is valuable information. Markets have an amazing memory and we can define price locations with astonishing accuracy by synchronizing relevant profile levels with liquidity in the order book.
Liquidity
Liquidity is the term we use to describe the limit orders in a market’s order book. There is a lot of noise here these days due to algorithmic spoofing activity, but an experienced order book trader knows exactly what to look for. Liquidity is an excellent way of confirming and underpinning the relevance of a price level. Such a level is all the more meaningful if the order book confirms in black and white that there is institutional trading interest.
VWAPs
Volume weighted average prices are among the most important metrics for institutional traders with a directional focus. For a hedge fund, for example, it is immensely important to know where the average price paid is in an uptrend. This can be used to determine whether this trend is in profit and therefore intact and where it is most worthwhile to further expand positions. VWAPs can therefore not only provide us with valuable support and resistance zones, but also tell us who is in control of the market and what the respective party is most likely to do.
SPAN
The SPAN interval is an important tool for risk assessment in the futures markets and is calculated daily based on the CME’s SPAN framework data. It defines the range within which institutional traders can hold their positions without significant pressure, as it is based on the calculation of minimum margin requirements. These values not only influence the risk management of brokers and clearing houses but also provide insight into potentially critical zones in the market. Within the SPAN interval, price movements tend to remain stable because institutional players have a strong interest in controlling price action within this range. However, once a SPAN level is breached, the risk of margin calls increases, often leading to impulsive price movements. These can result in strong trends, as traders are forced to adjust or close their positions. Traders who understand this dynamic can use SPAN levels to better anticipate market reactions and align their own strategies accordingly.
Market Analysis Daytrading
Level of Interestsingle markte $75 per month · $750 per year
Daily market analysis! Subscribe to the markets you need and take your trading to the next level! LOI offers analysis for the following markets: ES, NQ, CL, GC, 6E. The LOI plugin is compatible with TradingView, ATAS and Bookmap.
ES
The S&P500 future is one of the most traded instruments in the world and is particularly popular with retail traders. For no other market do we have so much fundamental data at our disposal which, with the right background knowledge, can give us a great advantage in trading.
NQ
The Nasdaq Future is the little, wild brother of the ES. The largest tech index in the USA is significantly more volatile and is not for the faint-hearted. Nevertheless, it has gained enormous popularity in recent years, especially among short-term traders. Experienced traders have the opportunity to implement successful scalping trades through rapid price movements.
CL
CL is the future for WTI crude oil, which is mainly produced in the USA. It is a balanced market with a similar character to the ES. Among retail traders, the CL is considered beginner-friendly and offers numerous opportunities for fundamental analysis.
GC
The gold future is one of the most frequently traded commodity futures in the world. It is a market that frequently changes its character from ultra-volatile to slow and sluggish. Nevertheless, the GC is a future of high interest and correspondingly good liquidity. With the help of external fundamental factors such as the evaluation of CoT data, the private trader can gain an advantage here.
6e
The 6E is the future for the most frequently traded forex pair in the world – the euro/US dollar. Analyzing the future can also be a great advantage for experienced forex traders as it gives us additional insight and information about the currency pair. So whether you trade the future directly or prefer the forex pair, with our Level of Interest software you can recognize turning points in the market at a glance and predefine the most likely trading direction.