Trade Point Technologies | Trading Reviews and Vendors


futures.io - futures trading strategies, market news, trading charts and platforms


Trading Reviews and Vendors


Discuss and review vendors of commercial trading products, trading rooms and services, trading indicators or third-party paid add-ons




 

Trade Point Technologies

  #41 (permalink)

Trade with the flow
Paris, France
 
Futures Experience: Advanced
Platform: Market Delta & Ninjatrader
Favorite Futures: ES
 
cunparis's Avatar
 
Posts: 2,565 since Jun 2009
Thanks: 1,157 given, 2,052 received


RJay View Post
"To demonstrate one of those flaws, please consider the situation where a very large buyer places a limit order at the current asked price - the order is larger than the asked size so he is partially filled at the asked and as the order took all the asked size the asked moves up and so does the bid. Now the remainder of this large buyer's order is on the bid and trade that fills this large buyer, on his bid, is recorded as selling volume. "

I use bid/ask extensively in my trading, which is why I still use Tradestation (only reason really).

His case makes a lot of sense, but I would have to ask if that is a common occurrence. I have found that if I look at the raw bid/ask data that it is extremely jumpy from one extreme to another. However if I smooth that data out then it reflects the true order flow. Very often I see a tip off to a reversal with this data.

Reply With Quote
 
Page generated 2018-11-18 in 0.08 seconds with 11 queries on phoenix