Order-Flow

/Order-Flow
Order-Flow 2018-10-27T03:41:46+00:00

Understand Orderflow &

Orderflow Trading Strategies

Tools Used

  • Ninjatrader 8 + NimbleNT (Globaldatafeeds)
  • Bell Order flow
  • Bell R-Delta
  • Bell Market Profile
  • Bell Delta

Munehisa Homma (1724–1803)

Which one is Good for Sky Reading?

Binocular

Telescope

Introduction to Orderflow

What is happening in the Market?

  • How to we understand what is happening in the market?
  • What the Buyers and Sellers are doing in the market?
  • Are Momentum Traders Present in the market?
  • Are Emotional Weaker hand traders present in the market?
  • Where exactly momentum exhaustion happening?
  • Where do most of the people keeping their stop loss?

What is Orderflow?

  • Orderflow is a visualization tool to understand what aggressive buyers or sellers are doing in the market.
  • Orderflow says about how the market auctions up and down.
  • What is happening in the market now. What is the current trading behavior which is going on (Big orders, Momentum buyers, Stop hunting, trapped buyers or sellers)
  • Can be combined with classical technical analysis or tools like market profile or other volume based studies

Three Dominant Market Participants

  • Financial Institutions-(Long Term)
  • Speculators – (Typically Short Term/ Intraday)
  • Market Manipulators / Market Makers (Short Term / Intraday)

What is Dominant?

  • It is not about who is dominating.
  • There is no one group trading here. But multiple layers of crowd.
  • Only one group can remain dominant at any given time.
  • Dominant Crowd does most of the impact to the people.

Level 2- Limit Order Book

BID Price -Pending Buying Orders

Waiting for MKT Sell Orders

Sellers hit the Bid

Telescope

ASK Price -Pending Sell Orders

Waiting for MKT Buy Orders

Buyers lift the offers (ASK)

Order flow Basics

Orderflow Table

Order Flow Block

Delta Explained

Converge 2018 – 3 Day Residential Market Profile Conference

Tools Used

  • Live Trading Room
  • Learn Market Profile, Order flow , Volume Spread Analysis
  • Residential Conference (inclusive of Stay, Food & Wi-Fi)
  • Bangalore – Hotel Fortune JP Celestial
  • Oct 6th – 8th
  • Mentors ( Rajandran R, Jayachandran, Mr Dean)
  • Early Bird Offer : Rs25000/- till 30th Aug 2018!
  • Coupon Code : MR1J3289
  • Website : www.convergemeet.com

Delta Candles

Unfinished Business

Unfinished Business from Market Profile

Unfinished Business from Market Profile

Orderflow / Footprint Charts

Orderflow / Footprint Delta Charts

What is the Intention of a Buyers/Seller

  • Price moves fast don’t want to miss the price – Places market order (to enter)
  • Price moving against his/her position fast – Places market order (to exit)
  • To get at a particular price – Places limit orders (to enter)
  • It could be a stop-loss, Target Order (to exit)
  • It could be a hedge to their other position
  • It could be a pair trade

DOM – Depth of the Market

When more Market Orders come in at the ask price than the limit orders, then price can move higher

Resting Limit Orders are waiting for the fill

RD Long Signal

  • Zone where in a Short term Sellers get Exhausted
  • Zone where Price Candle Closes positive despite sellers in control
  • Delta = Negative
  • Min Detla = Negative
  • Max Delta = Zero
  • Candle = Positive

R Delta Long

RD Short Signal

RD Long Signal

  • Zone where in a Short term Sellers get Exhausted
  • Zone where Price Candle Closes positive despite sellers in control
  • Delta = Negative
  • Min Detla = Negative
  • Max Delta = Zero
  • Candle = Positive

R-Delta Short

Delta Candles

  • Delta Candles
  • Open – Opening Delta
  • High – Max Delta
  • Low – Min Delta
  • Close – Actual Delta Closing Value

Delta Divergence

How to Interpret Delta Candles

  • 1)Momentum Buying – Price Goes up -> Delta also goes hugely up
  • 2)Sellers Absorption – Price is falling largely -> Delta holds positive
  • 3)Momentum Selling – Price Goes Down -> Delta also largely down
  • 4)Sellers Absorption – Price is shooting up largely -> Delta holds negative

Delta Divergence

Delta Divergence

Emotional Sellers

Market Profile + Volume Distribution