Heat Maps & Heat Study Scripts

Heat maps are used to visualize the correlation between heat study script values and the prices changes that follow them. Heat study scripts are used to calculate mathematical values based on the values of analysts, indicators, patterns and drawings at a specified point in time. Heat study values which are found to be highly correlated to future price movements can be used for designing quality scripts.

A heat map process runs over a specified date range while calculating heat study values after every bar of every symbol and recording the price movements that follow them. The resulting heat map is a price change statistics map whose x-axis shows the values calculated by the heat study and whose y-axis shows the future bar numbers.

The IQBroker automated trading software ships with a library of premade heat study scripts that can be parameterized and customized without any programming, while custom scripts can be easily developed using the resource designer and IQLanguage.

Script Implementation

OnInitialize() This function is called automatically when the script is first initialized.

OnValue() As Number This function is called automatically after every bar of every symbol processed by the heat map, its implementation should calculate a value whose statistical meaning is to be evaluated by the heat map. The values can be calculated using analysts, indicators, patterns and drawings or by any other means.