Wednesday, 9 July 2014

OFT Example

The chart below shows one way of using the OFT bars.

Price opens in ES RTH with the bigCCI showing a downtrend. Price bounces against resistance of previous POC and the Tail at the bottom of the last MP distribution.

SOLD!

Its then a matter of managing the trade. The OFT bars just show the selling at a critical point. They are not a red light/green light indicator. The context, as usual, is very important in understanding what is happening. I'm spending a lot of time on context in the MP book. That's what is taking a lot of time. I've made an improvement to the OFT bars with a candle display as it gives more information quicker. The way that the Order Flow is coloured is different to each market as the volume of, say, the ES is significantly different to the CL. Again, I'm showing how this is done in the book. As you can see, the selling visible in the OFT bars gives a greater degree of confidence in the sale against MP resistance. Also, seeing the downtrend in the CCI immediately tels you what to look for as the market unfolds.



2 comments:

  1. jenrique42

    quien te da el OFT, que broker?

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    Replies
    1. I had the OFT bars programmed for me. They work with MultiCharts.

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