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Momentum Indicator


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Momentum Indicator

  #1 (permalink)
Mresa641
Dallas TX USA
 
Posts: 9 since Aug 2020
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What do you guys find helpful to determine when the strength and size of a move is getting exhausted. I have a good setup but I am working to improve my entry around a particular level for my equity trades.

I use EMAs and RSI at the moment but would like to add something that is reliable. I have TOS and NT8. I have seen some stuff on standard deviation indicators.

Thanks in advance.

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  #2 (permalink)
 Meklon 
New York, USA
 
Experience: Advanced
Platform: Sierra Chart
Trading: RTY, ES, YM, NQ, CL, NG, GC, HG
Posts: 61 since Oct 2016
Thanks Given: 53
Thanks Received: 197

The indicators you are currently using are all derived from price and therefore are lagging. You will not be able to receive any useful information from them because they are ALWAYS late. If you trully want to gain an edge, you need to learn Order Flow (real-time interpretation of the traded and book liquidity).

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  #3 (permalink)
Mresa641
Dallas TX USA
 
Posts: 9 since Aug 2020
Thanks Given: 4
Thanks Received: 0



Meklon View Post
The indicators you are currently using are all derived from price and therefore are lagging. You will not be able to receive any useful information from them because they are ALWAYS late. If you trully want to gain an edge, you need to learn Order Flow (real-time interpretation of the traded and book liquidity).

Awesome advice, thanks for the reply Meklon. That was a direction I was heading but I didnt seem to get anything from the volumetic bars on NT8's Order Flow+. Any recommendations for what type of order flow tools to use? Also, where is a good spot to learn how to read the order flow bars? I cant seem to find a solid material on how to read the order flow stacked bars. Ive seen some guys selling their own "Stacked Bar Indicators" that have a highlight of when the price action might make a move in the opposite direction but as always, I am skeptical and Im not buying anything. I have levels that I use that result in good trades but I need to hone it a little more to really make it a solid set up.

Thanks for the help.

M

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  #4 (permalink)
 Meklon 
New York, USA
 
Experience: Advanced
Platform: Sierra Chart
Trading: RTY, ES, YM, NQ, CL, NG, GC, HG
Posts: 61 since Oct 2016
Thanks Given: 53
Thanks Received: 197


Mresa641 View Post
Awesome advice, thanks for the reply Meklon. That was a direction I was heading but I didnt seem to get anything from the volumetic bars on NT8's Order Flow+. Any recommendations for what type of order flow tools to use? Also, where is a good spot to learn how to read the order flow bars? I cant seem to find a solid material on how to read the order flow stacked bars. Ive seen some guys selling their own "Stacked Bar Indicators" that have a highlight of when the price action might make a move in the opposite direction but as always, I am skeptical and Im not buying anything. I have levels that I use that result in good trades but I need to hone it a little more to really make it a solid set up.

Thanks for the help.

M

I don't know enough about your trading experience or background but I can tell from the questions above that you looking at this from an incorrect angle. There are many indicators available to read the OF but they are all just tools. Without solid understanding of market action, absorption / aggression and internals of how the OF works you will not gain anything from any number of new indicators. What you need is solid understanding of passive sellers vs aggressive sellers and why the price moves. Then you can use the tools (Foot Print, Volume Metric bars, etc.) to simplify your search for the patterns of the traded volume as well as liquidity available in the book. This is a lengthy process and requires a good mentor.

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  #5 (permalink)
Mresa641
Dallas TX USA
 
Posts: 9 since Aug 2020
Thanks Given: 4
Thanks Received: 0


Meklon View Post
I don't know enough about your trading experience or background but I can tell from the questions above that you looking at this from an incorrect angle. There are many indicators available to read the OF but they are all just tools. Without solid understanding of market action, absorption / aggression and internals of how the OF works you will not gain anything from any number of new indicators. What you need is solid understanding of passive sellers vs aggressive sellers and why the price moves. Then you can use the tools (Foot Print, Volume Metric bars, etc.) to simplify your search for the patterns of the traded volume as well as liquidity available in the book. This is a lengthy process and requires a good mentor.

Good to know, Im willing to put in the work to advance my trading. Where/how can I find help to explore this? Books, sites, mentors are all welcome.

Thanks,

Mario

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  #6 (permalink)
 Meklon 
New York, USA
 
Experience: Advanced
Platform: Sierra Chart
Trading: RTY, ES, YM, NQ, CL, NG, GC, HG
Posts: 61 since Oct 2016
Thanks Given: 53
Thanks Received: 197


Mresa641 View Post
Good to know, Im willing to put in the work to advance my trading. Where/how can I find help to explore this? Books, sites, mentors are all welcome.

Thanks,

Mario

PM me

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  #7 (permalink)
Mresa641
Dallas TX USA
 
Posts: 9 since Aug 2020
Thanks Given: 4
Thanks Received: 0


Meklon View Post
PM me

Sent, thanks.

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Last Updated on August 12, 2020


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