And the times are still changing as people are using technology more and more and in more innovative ways. It has been estimated that algo driven activity is responsible for 80% or more of current volumes.
From the feedback I'm getting from past and present students, markets now are more difficult to trade than ever. Traders need to adapt to markets day by day as they evolve.
And this has not been happening enough.
Having repeated that markets are driven by order flow ad nauseum since 2009 when this blog started, I am amazed every day that order flow is still the most misunderstood activity in the market place. This is perhaps because context is being ignore.
Different order flow activity means different things in different contexts.
I have been asked to create a new course focusing on trading the markets in this new and continually changing environment. I've started working on this but have not decided whether to just present it in this blog or to deliver it in a series of workshops online.
There are two NinjaTrader8 charts below. The first one is a bar chart that shows what is happening with the order flow and second one is a Market Profile and Volume Profile chart. This is all that is needed to trade successfully if you have a valid trading plan.
I have drawn attention to the arrows that have been programmed to give me order flow information. One can see the swing up, the stall and the push back down. This is repeated continually on different scales and periodicities as the auction process is played out.
jenrique42
ReplyDeleteIt really does not matter where and how you do it, but do it
I am looking forward to reading it again
jenrique42
realmente da igual donde y como lo haga, pero hagalo
estoy deseando volver a leerle
jenrique42
ReplyDeletein my opinion, on the one hand is a matter a little complicated to understand, order flow, and the student would have to have a great ability to abstract the concepts to translate them into the graphics, on the other hand it takes many time in their assimilation and it is here where most people fail, they are not persevering and when they see that it is a difficult subject they fall behind in the learning
Linnsoft's IRT with the DeltaPrint (RTX plug-in) provides way more info on order flow than is availible on any NT8 plug-in. Including an order imbalance algo that spots delta divergences. You might want to try it out Tom.
ReplyDeletejenrique42
Deletewith time, the platform is not the most important thing but it is the assimilated concepts and your experience what gives a logical reasoning to the information that shows us the graph
jenrique42
con el tiempo, la plataforma no es lo mas importante, sino que son los conceptos asimilados y tu experiencia lo que le dan un razonamiento logico a la informacion que nos muestra el grafico
Hello Tom,
ReplyDeleteI hope this finds you well.
A while back you talked about doing a webinar/post
about scalping.
When there is no follow through on small rage days,
such as we had lately, that is a nice tool/technique to have.
Rino