Institutions in crypto require a convenient and safe environment for trading and investing. An institutional crypto platform is a place where crypto is traded in large amounts. Well-known platforms offer their clients institutional trading tools and indicators to access trends, liquidity, and other necessary insights for efficient trading.
In this article, we will discuss key institutional trading indicators and tools that help institutions trade efficiently and analyze their trading activity.
Table of Contents
Level II Quotes
With this tool, investors access the order book in real time, where they get information on current buy and sell prices and available volume at each price level. This helps understand the market depth and liquidity for specific trading pairs. This tool is especially important for a market-making platform.
Time and Sales
When trading crypto, investors must access market sentiment – it helps to identify potential trends or reversals. Time and sales data includes information on every trade executed in the market with its price and volume. It helps detect large trades and buying/selling pressure on assets.
Volume Profile
Institutional cryptocurrency investors use this tool to detect support and resistance levels, which helps them understand the right time to enter and leave the position. The data is represented in a chart showing the traded volume at each price level.
Moving Averages
Investors use them to identify the overall trend in the market. That may be given in 50, 100, and 200-day intervals, and helps traders detect short-term price swings and focus on the overall trend.
Order Flow Analysis
This tool allows traders to monitor buy and sell orders in real-time, giving a vision of the balance between buying and selling pressure. It also allows for the identification of large trades and forecast possible price movements.
Key Indicators
Institutional crypto traders use these indicators:
- Relative Strength Index (RSI). This index measures the speed of price swings and helps traders detect overbought and oversold assets. When the index reaches extreme levels, that means inevitable price correction. This information helps investors make the right decisions on time.
- Market Breadth Indicators (McClellan Oscillator, advance-decline line, advance-decline ratio) allow for assessing market sentiment and overall health and strength of the market to have a broader vision of it.
Conclusion
Institutional investors require quality institutional services to evaluate the market conditions, adjust strategies, and make informed trading decisions.