Are You Ready For A NEW Perspective On The Markets? RSI? MACD? Moving Averages? Bollinger Bands? Fibonacci Levels?

(Last Updated On: December 17, 2011)

Are You Ready For A NEW Perspective On The Markets? RSI? MACD? Moving Averages? Bollinger Bands? Fibonacci Levels?
These are many of the common indicators I have attempted to use the past to trade the Emini’s. Considering that these indicators ALL are based on price, it should be no spry’s that they LAG price and provide a poor roadmap to trade futures with.

The key question is: What Drives Price?

What can you use in your trading that precedes price? If you had such an “indicator” do you think that would give you an edge?

Or does this sound too good to be true… Searching for the holy Grail that we all know doesn’t exist?

Well… Let’s think about this for a moment. What makes up price?

ORDERS…Orders make up price! The buy orders and sell orders make up the order flow.

So, if the order flow could be organized into an easy way to use and interpret trading dashboard, would that not give you a NEW perspective on the market? A NEW perspective that precedes price action?

What do you have on your trading dashboard?
P.S. If You Are Struggling With Your E-Mini Trading, It Doesn’t Have To Be That Way. I Have THE Solution.

 

Fully agree with you that most indicators are useless…nay, misleading. But trend-following indicators like MAs and Paraboloc SAR are quite helpful. If you can discipline yourself not to fight the trend, you have a substantial edge. You can be a consistent winner.

 

Sorry…but I am suspicious of what you are alluding i.e that you have some kind of inside information on orders.

 

.you should be suspicious in this industry! Good for you.

The best thing I can do is show it to you so you can see it for yourself. I would like to extend an invitation to you to join us as a guest in our ES trading room. Here you will see our complete Market Map and Trading Dashboard which is based on order flow.

You will also be able to see actual orders entered! We take real-time entries and exits on the DOM.

This way you can see that we have no insider information, but rather have found the best way of organizing the order flow information that is available to everyone.

Send me an Inmail if you are interested and I will set it up.

Cheers…and keep being skeptical. 🙂

 

One more skeptical in the league. I have seen many a times that how an operator manipulated the price movement by putting false orders. If your system generating a signal with calculation of the strength of buy and sell order it might count the fake and false orders as well.

 

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I agree with you! The false orders can be a problem and I have seen traders have difficulty with that when trading off the DOM. What is key is how a traders organizes that Order Flow information. There are many ways to do that. Our group has organized it in a very visual (as opposed to mathematical) and so as to avoid the false orders. And that is key!!!

 

I do use the Parabolic SAR and MA on higher time frames…especially in the currencies which tend to have more trending moves. For intraday trading the ES I much prefer using Order Flow since the ES is in a trading range about 70% of the time intraday. Considering this condition, using trend following techniques or indicators that lag the market can be very detrimental to ones trading account!

 

Which platform do you use ?

 

I use Sierra Charts for defining and quantifying the order flow. I have been a Tradestation user for years and I have found Sierra Charts to be excellent! I use DTN IQ for data.

 

 

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About caustic

Hi i there My name is Bryan Downing. I am part of a company called QuantLabs.Net This is specifically a company with a high profile blog about technology, trading, financial, investment, quant, etc. It posts things on how to do job interviews with large companies like Morgan Stanley, Bloomberg, Citibank, and IBM. It also posts different unique tips and tricks on Java, C++, or C programming. It posts about different techniques in learning about Matlab and building models or strategies. There is a lot here if you are into venturing into the financial world like quant or technical analysis. It also discusses the future generation of trading and programming Specialties: C++, Java, C#, Matlab, quant, models, strategies, technical analysis, linux, windows P.S. I have been known to be the worst typist. Do not be offended by it as I like to bang stuff out and put priorty of what I do over typing. Maybe one day I can get a full time copy editor to help out. Do note I prefer videos as they are much easier to produce so check out my many video at youtube.com/quantlabs