Market Signals: Reading Kuroko's Live Indicators

Understand all 7 market signals Kuroko surfaces — what each one means, the exact thresholds that trigger it, and how to act before placing an order.

Before you place an order, Kuroko analyses the market’s order book and recent activity and surfaces up to seven signals. Each signal is grounded in a specific, verifiable condition — spread width, volume, probability movement, order book depth, or time to close. No signal ever claims a side is underpriced; they describe execution conditions and market behaviour, so you can decide whether conditions suit your strategy.

Signal overview

Signal	Severity	What it means	Recommended action
TIGHT_SPREAD	Positive	Spread < 2% — low execution cost	Good conditions to enter with a market order
HIGH_ACTIVITY	Positive	Volume > $500K and 24h move > 3pp	Market is actively being repriced
MOVING	Neutral	24h probability change ≥ 5pp	New information may be entering the market
LIQUID	Positive	Order book depth > $50K or liquidity >$200K	Large orders can fill cleanly
NEAR_RESOLUTION	Neutral	Market closes within 7 days	Time value is real — theta risk applies
WIDE_SPREAD	Warning	Spread > 5% — high execution cost	Use limit orders; market orders will be expensive
LOW_VOLUME	Warning	Total volume < $10,000	Thin market — exiting a position may be difficult

Signals are computed fresh every time Kuroko analyses a market. They reflect current conditions, not historical averages.

Signal details

TIGHT_SPREAD

Fires when the bid/ask spread is below 200 basis points (2%).

The detail string shows the exact spread, for example: 1.4% spread — low execution cost. A tight spread means you pay less to get in and out, and market orders are unlikely to fill far from the displayed price.

HIGH_ACTIVITY

Fires when both conditions are true: total volume exceeds $500,000 and the absolute 24h probability change exceeds 3 percentage points.

The detail string shows both values, for example: $620K volume · 4.2pp 24h move. This signal tells you the market has real capital behind it and that traders are actively updating their positions — a sign that new information is being priced in.

HIGH_ACTIVITY combined with TIGHT_SPREAD is the strongest positive combination. It means the market is both liquid and actively repriced, which gives you a better chance of entering near true value.

MOVING

Fires when the absolute 24h probability change is ≥ 5 percentage points.

The detail string shows direction and magnitude, for example: ▲ 6.3pp in 24h — active repricing. This is a neutral signal — the market is moving, but Kuroko does not take a view on whether the move will continue or reverse.

LIQUID

Fires when either of the following is true:

• The sum of the top 5 bid levels plus the top 5 ask levels in the order book exceeds $50,000
• The market’s reported liquidity field exceeds $200,000

The detail string shows the source, for example: $62K book depth — large orders can fill cleanly. When this signal fires, you can expect large orders (thousands of dollars) to execute without significant slippage.

NEAR_RESOLUTION

Fires when the market closes within 7 calendar days.

The detail string shows the exact countdown, for example: 3d to close — time value is real. As a market approaches resolution, its price tends to converge toward the actual outcome probability. This can create both opportunity and risk, depending on your position.

NEAR_RESOLUTION markets carry elevated theta risk. If you hold shares that don’t resolve in your favour, you may not have time to exit before the market closes.

WIDE_SPREAD

Fires when the bid/ask spread exceeds 500 basis points (5%).

The detail string shows the exact spread, for example: 6.2% spread — high execution cost, consider limit orders. A wide spread means the round-trip cost of entering and exiting is substantial. A market order to buy at the ask and later sell at the bid could cost you 6%+ of your position value before the market moves at all.

LOW_VOLUME

Fires when total lifetime volume is below $10,000.

The detail string shows the exact amount, for example: $7.2K total — thin market, hard to exit. In thin markets, there may not be enough counterparty interest to fill your exit order at a reasonable price.

Execution score

The execution score (0 – 100) summarises how easy it is to enter and exit the market based on spread and liquidity. A higher score means tighter spread and deeper liquidity.

Condition	Effect on score
Baseline	50
Spread < 100 bps	+30
Spread 100–200 bps	+20
Spread 200–500 bps	+5
Spread > 500 bps	−20
Liquidity > $200K	+20
Liquidity > $50K	+10
Liquidity < $10K	−20

The score is clamped to 0 – 100. An execution score above 70 generally means you can enter with a market order without excessive cost.

Activity score

The activity score (0 – 100) summarises how actively a market is being traded, based on volume and recent probability movement.

Condition	Points
Volume > $1,000,000	+40
Volume > $500,000	+30
Volume > $100,000	+15
Volume > $10,000	+5
24h change > 10pp	+40
24h change > 5pp	+25
24h change > 2pp	+10
7d change > 15pp	+20
7d change > 7pp	+10

The score is capped at 100. Kuroko sorts market lists by activity score descending, so the most active markets appear first.

Slippage estimation

When an order book is available, Kuroko estimates slippage in basis points for a hypothetical $100 buy order. The estimate walks the order book from the best ask level outward, calculates the volume-weighted average fill price, and compares it to the best ask.

slippageBps = |avgFillPrice − bestAsk| / bestAsk × 10,000

This estimate is informational — actual slippage will vary with order size and market conditions. For large orders, request the order book directly and walk it yourself with a size that matches your intended trade.

Interpreting signals before placing an order

1. Check the spread signals first

   If WIDE_SPREAD is present, switch to limit orders. A market order on a 6% spread costs you 6% before the market moves.

2. Look for LOW_VOLUME

   If LOW_VOLUME is present, think about exit. A thin market may let you enter but not exit at a fair price.

3. Check the execution score

   An execution score above 70 means conditions are clean. Below 40 means you should use limit orders or wait.

4. Use MOVING and HIGH_ACTIVITY to time entries

   These signals tell you the market is repricing. Whether that repricing benefits your thesis is for you to judge.

5. Factor in NEAR_RESOLUTION

   If the market closes in fewer than 3 days, your exit window is narrow. Size accordingly.