how to identify/predict the market counting on the future index. | Traders Hideout - futures trading strategies, market news, trading charts and platforms

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how to identify/predict the market counting on the future index.

  #3 (permalink)

Trading Experience: Advanced
Platform: nijia trader
Broker/Data: A.M.P. I.Q. ....C.Q.G.
Favorite Futures: ym
Posts: 525 since Mar 2012
Thanks: 104 given, 261 received


in general terms you get a opening gap when the market maker has more order to execute at the open than there is inventory to fill them. futures trade 24/7 for the most part. so if there are trading above or below the pit settlement price it has gaped that much. trading that is not so easy... there is a end side gap that is a gap in range ..the will fill during the day 80 % when it gaps out side of range that is 60 % part of it will fill same day. in general terms the market marker will fade there at open orders if there is a gap ...betting they can get a better price some time that day... but your are not the market maker they know how much the order flow imbalances is, where the orders are coming from , and what other orders they have receive where they have days to fill them. so they no if there pulling up in pick up trucks to buy or sell or dump trucks an how long the line is. hope it helps

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