Reading order flow - big vs small players - futures io
futures io

Reading order flow - big vs small players

Discussion in Emini and Emicro Index

    1. trending_up 1,771 views
    2. thumb_up 6 thanks given
    3. group 4 followers
    1. forum 2 posts
    2. attach_file 0 attachments

Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

Search this Thread

Reading order flow - big vs small players

(login for full post details)
  #1 (permalink)
Experience: Intermediate
Platform: sierra
Trading: futures
Posts: 403 since May 2015
Thanks: 58 given, 205 received

Just started intraday trading the ES. I for the most part only look at the dom and time/sales. Today I was seeing larger lot orders on the buy side throughout the day, 400-600 lot blocks, being purchased. Price remained fairly stable with a small bias to the upside. Then price might slowly trickle back down. volume and action was fairly low all day.

Am I incorrect in thinking that these large sized buys that were taking place over the entire day would indicate an institutional buyer? It ended up ramping up a decent bit at end of the day. Sp I'm thinking seeing this accumulation, especially in larger blocks, throughout the whole day was a nice indicator of the later run up. Any thoughts or advice? Thanks

Started this thread Reply With Quote
The following user says Thank You to halperin for this post:

Journal Challenge April 2021 results:
Competing for $1800 in prizes from Jigsaw
looks_oneMaking a Living with the Microsby sstheo
(620 thanks from 61 posts)
looks_twoSalao's Journalby Salao
(163 thanks from 29 posts)
looks_3Learning to Profit - A journey in algorithms and optionsby Syntax
(115 thanks from 27 posts)
looks_4Deetee’s DAX Trading Journal (time based)by Deetee
(94 thanks from 30 posts)
looks_5Maybe a little bit different journalby Malykubo
(53 thanks from 32 posts)
Best Threads (Most Thanked)
in the last 7 days on futures io
I finally blew up an account
124 thanks
The Crude Dude Oil Trading System
85 thanks
Spoo-nalysis ES e-mini futures S&P 500
65 thanks
The tiyfTradePlanFactory indicator
31 thanks
Building a Crypto Mining Rig
19 thanks
(login for full post details)
  #3 (permalink)
Charlottesville, VA
Posts: 21 since Apr 2014
Thanks: 0 given, 13 received

There's very few rich dumb people. Most large lot trades are by professional traders or institutions. That said, you shouldn't just be looking at order size, because many automated firms trading millions into the market will trade hundreds of 1 lot trades rather than 1 large order to hide their presence.

I would just opening up a tick chart, with volume and average trade size indicators. You can determine average trade size by doing

V / T

V = Volume
T = Tick (The tick chart setting you are using.)

If you are looking at a 233 tick chart, then you know 233 trades took place in that bar. All you need to do is Volume / 233 to determine the average trade size.

You'll usually want to look for high or low volume peaks, with an average trade size confluence.

You'll see a lot of times on the low of day or extreme swing lows volume coming in with spikes in the average trade size as well. In extreme swing highs you may see very low volume (exhaustion) or in some cases big volume of profit taking/selling if its the high of day.

Most people I've seen from Google searches who just trade the DOM end up losing money, or quitting by the end of their forum thread, because it's an ego thing. "Hey look at me, I don't need charts!." But in my opinion there's no better method of day trading than analyzing volume and average trade size in tick charts.

I personally use 233 tick for scalping/trade entries and 512/1200 charts for analyzing the volume, swing highs, swing lows, low of day, high of day, etc. I like to take lows or highs reversals with lots of volume or very little, and I also look for consolidation breakouts where there's small range but a lot of volume. I use average trade size for confluence. Nothing beats supply and demand. Buy when the big boys buy and sell when the big boys sell.

Reply With Quote
The following 5 users say Thank You to chrisplecker for this post:

futures io Trading Community Traders Hideout Emini and Emicro Index > Reading order flow - big vs small players

Last Updated on June 6, 2015

Upcoming Webinars and Events

NinjaTrader Indicator Challenge!


Journal Challenge w/$1,800 in prizes!

May 7

The Cold Hard Truth: Maybe I Am Not Good Enough w/Chris Gray @ Earn2Trade

Elite only

Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada),
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts