The Market Map is a powerful visual tool that can be used to quickly identify trading opportunities in the markets. The Market Map provides a visual overview of price and volume in a wide range of shares across all sectors of the Australian market. The Market Map is located under the Analytics menu.
The Map Area controls the size of the box displayed and can be set to display by Index points, Market Capitalisation, Movement, Volume or Value. The Market Capitalisation and Value are most commonly used.
The Map Colour controls how the share price movement is displayed, green for up and red for down. There are two options: either by Index Points, or the more common Movement (%). The brighter the colour the more movement has occurred in the share. You can also select to display the codes for the shares by placing a tick in View Sec Codes box.
You can drill down into a sector with a double click on the sector and then down into subsectors as well with another double click. To move back up a level click the Zoom Out button at the top of the screen.
So far we have covered the mechanics of how to use the Market Map, but more importantly is how to use the Market Map to find trading opportunities. The trick here is to identify the odd one out, ie the shares that are behaving differently to all the other shares. This allows us to quickly narrow down trading opportunities.
If the market is up strongly then look for the shares that are underperforming, ie red shares, for potential sells. If the market is down strongly then look at the shares that are showing green and outperforming the markets. On a day when the market is relatively flat look for shares that are moving. The brighter colours identify these shares more clearly.
A recent example of this was Harvey Norman, which was underperforming in both the sector and the market after its announcement of a profit drop of 40%. You can right click on any share in the Market Map and select a D2MX Chart to take a closer look at any company.
In this way you can quickly identify a few companies to take a closer look at for potential trading opportunities. The information is updated live throughout the trading day, and if you are watching the market during the day you can identify shares that continue to move strongly as the day goes on. This may provide short term trading opportunities for those that choose to jump on board and trade with the momentum of the share.
The Market Map is a great visual tool for quickly sorting out potential trading opportunities, by identifying shares that are moving against the trend of the market or sector. These shares can be identified by the colour and size of the square on the chart, allowing you to quickly move in to your more detailed analysis. Try it today and see what opportunities you can identify.
By Jeff Cartridge