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 a heat map finds to be highly correlated to future price movements can be used for designing highly profitable trading strategy 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 platform ships with a library of premade heat study scripts that can be used without any programming, while custom scripts can easily be developed using the resource designer and IQLanguage.