How Time & Sales (T&S) is useful for traders

Time and sales (T&S) is a real-time filter and mostly useful for serious day traders and jobberswho want to observe significant trades to prioritize those price levels and trade accordingly in the market. We are privileged to announce that FYERS is the only brokerage to launch Time and Sales widget on our web platform.

Analysing the flashing stock quotes and making rational trading decisions, is an imperative skill that every day trader needs to focus on. Retail traders know much more about using indicatorseffectivelywhile trading but, very few have an idea about how to trade with real-time quotes and volume of trades. It is not humanly possible to observe all trades without a filter. That’s when Time & Sales window is very useful.

Time and sales window is a detailed-sequential log of the tradesexecuted inthe chosen scrip. It gives the crucial trade data such astraded prices, volumes traded with time stamps.This information is crucial to identify the short-term trend in the chosen scrip.

 

How effective is the Time and Sales Filter?

The time and sales window is the most detailed portrayal of a market’s trading information. Usually, graphical charts are used to provide an overview of a market’s price movement. However, some trading styles like intraday trading, jobbing, scalping and high-frequency trading require more detailed information about the market. The time and sales window can be used to observe the minute details of a market’s price action, and since the graphical and data-driven methods are often complementary to each other.

T&S is a real-time display a variety of information for each executed trade like:

Price – Price at which trade executed.

Volume – No. of contracts/shares traded in the period.

Time – Date and time at which trade executed.

Direction – Price movement compared to the previous period.

Therefore, Time & Sales filters are a vital part of professional technical analysts.

For example, time and sales data would indicate that at 11:42:22 on the NIFTY exchange for XYZ Bank script 500 shares were traded at ₹ 678.45 and at 11:42:23 traded with 500 shares at ₹ 678.3.

Time and sales data can be accessed via the Fyers Web trading platform and can be accessed form the right click functionality.The window displays a running tally of trades of a stock in a table format. The degree to which T&S indicator is effective depends upon the direction element, which often causes much of the confusion for new traders.  The reason for this confusion is, every trade is executed when buyers and sellers are available at a particular price point otherwise, there wouldn’t be any trade. If there are both a buyer and a seller, how can be labelled as either buying or selling trade?

The direction of a trade is decided on the basis of how it affects the current market price. If a trade helps the market price to move up, then the trade is labelled as a buying trade. Contrary, if a trade helps the market price to move down, then the trade is labelled as a selling trade. Based upon this data one can make a wise decision to enter into the trade, as it assists in finding out the demand and supply area in the script. Moreover, the filter option enables to analyse the previous trades and understand the demand / supply sentiment of the market and to ascertain if there is either buying or selling at precise price points.

Traders follow a number of indicators and tools to decide either to buy or sell a particular share amongst the thousands of the trading scrips. In general, technical analystsuse graphical charts, charting patterns and depth of market along with the time &sales data.This gives a broader view of the price and volume trends.Also, you need to be aware of the trading activity around support and resistance levels using time & sales filteras these crucial price levels are important for intraday traders.T&S is primarily used by very short-term& intraday traders, scalpers and high frequency traders who represents the shortest-term style of trading and attempts to skim many small profits from a large number of trades throughout the trading day, since, these traders believe it’s easier to make and be profitable from small moves in stock prices rather than from large moves.

How to use Time & Sales (T&S)on Fyers Web?

The exchanges currently send Time and sales data in intervals of one second. You can use this data to filter out what you’re looking for.Currently Time & Sales data is available for the following segments:

• Equities
• Commodity futures
• Currency futures

In the time and sales window, you will find additional info such as Open, High, Low, Previous close, LTP and cumulative volume for the selected scrip. Importantly, the platform allows you to filterthe Minimum andmaximum price, quantity traded and the time period in which you are seeking to identify important trades. Checkout the screenshot of the T&S window:

Let’s assume you are looking for the significant trades in UPL in the price range of ₹660.0 to ₹ 700.0. Considerably, you found some sort of price action between a specific time period of 01:10:01 PM to 02:30:00. Further to classify the big trades with a number of shares traded between 100 to 1000 shares.

1. To access Time and Sales widget, right-click menu over the chart.
2. By default, all the trades executed per second are shown with traded price, quantity and time from the 09:00:01 AM to the latest traded time.
3. To customize the available T&S data choose price range, volume range and the time period as per the convenience and click apply to see desired result.
4. Here, you can find as per our assumption for UPL stock, desiredtrades are shown and can find out that significant buying with huge volume took place in that period and made high of 705.95 after that.

We introduced this feature based on the valuable feedback given by our active trading clients. We look forward to introducing many more features in the future. If you think this will be useful to other fellow traders, do refer them to us.

Happy Trading!