AI Heat map

Overview

The AI Heat Map is a dynamic visualization tool within the Lune Institutional Analysis suite that provides real-time insights into historical volume distribution. By mapping volume activity across specific price levels, it enables traders to identify significant areas where institutional participants and the broader market are actively buying or selling.

This feature creates an "evolution" effect on the chart, where each bar position reflects its own historical volume state. Users can choose between different data modes, such as total volume activity or buy/sell pressure, to visualize the concentration of market interest as color-coded zones that intelligently extend across the chart.

Settings

Traders can customize the AI Heat Map to prioritize either granular detail or long-term structural significance.

Core Configuration

Setting	Description
AI Heat Map	Enables or disables the AI-powered volume heatmap visualization.
Data Mode	Controls the type of volume visualized: Net Volume (total activity), Net Volume Delta (buy vs. sell pressure), or Directional Volume (magnitude with directional bias).
Sensitivity	Controls the granularity of level detection (1–5). A value of 1 provides the smoothest view of the strongest levels, while 5 offers maximum detail.
Lookback Period	Sets the number of historical bars (5–200) analyzed to calculate the heatmap.

Advanced & Visualization Settings

Setting	Description
Premium+ Features	When enabled, utilizes advanced volume calculations using sub-1-minute timeframe analysis.
Levels per Bar	Sets the maximum number of significant volume zones (1–5) displayed for each analyzed historical bar.
Adaptive Transparency	Dynamically adjusts zone opacity based on volume significance. The most significant levels appear more opaque.
Bull/Bear/Neutral Colors	Customizes the colors used to represent bullish pressure, bearish pressure, and neutral volume activity.

Best Practices & Usage

• Identify Institutional Bias: Use the Net Volume Delta mode to visualize where net buying or selling pressure is concentrated. Highly opaque bullish zones often indicate institutional accumulation, while thick bearish zones highlight distribution areas.

• Monitor Zone Touches: Pay close attention when the current price interacts with a significant heatmap zone. These areas often act as real-time support or resistance where large orders are being filled.

• Filter Market Noise:

  • Use Lower Sensitivity (1–2) for a "macro" view, highlighting only the most dominant volume levels over the lookback period.

  • Use Higher Sensitivity (4–5) for intraday trading to see minor liquidity pockets that may cause short-term price stalls.

• Confirm with Alerts: Enable the Heat Map: Touched alert to receive notifications when price enters a significant volume level, allowing you to react to institutional activity without constantly monitoring the screen.

• Strategic Lookbacks: Adjust the Lookback Period based on your trading style. Short lookbacks (20–50 bars) are ideal for capturing immediate momentum, while longer lookbacks (100–200 bars) help identify major structural supply and demand zones.