Thursday, 28 July 2016

You Can See the Orderflow

The key to market direction as I have said many times is ORDERFLOW. "Orderflow" has become a much over used word in the many years since I started this blog in 2009.

The issue is that most wanna be traders have no idea of what orderflow is. I guess I have a big advantage of being a an ex local pit trader as that was at the sharpest edge of orderflow.

Any picture, setup or trading idea can be completely invalidated if the orderflow changes: if enough orders come into the other direction to your trade. Before the latest technology of which NinjaTrader 8 is a great example, we nhad to look at the footsteps of orderflow: indicators. This was not perfect. Indicators have now become part of the context.

Today's chart shows how easy it is to see orderflow. However, the orderflow needs to be seen in context to understand the probabilities of what will happen next. Pete Steidlmayer's teachings have even more relevance now that we can see orderflow clearly.

1 comment:

  1. Is the ninjatrader 8 add-on you are using here available to the public?