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Order flow analysis for longer term trades?


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Order flow analysis for longer term trades?

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  #1 (permalink)
Rome Italy
 
 
Posts: 22 since Apr 2019
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Hi all,

Do you think that order flow analysis is pointless for longer-term trades ranging from 30mins to 4 hours?

Many traders believe that it's only useful for scalping.

What is your opinion on this matter?

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  #3 (permalink)
Market Wizard
Columbus, OH
 
Experience: None
Platform: NT 8, TOS
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Incognito View Post
Hi all,

Do you think that order flow analysis is pointless for longer-term trades ranging from 30mins to 4 hours?

Many traders believe that it's only useful for scalping.

What is your opinion on this matter?

I do prefer short term trading, but I also like to look at a 30 min chart. especially the volume imbalances can be very helpful:




I even look at a daily chart as well. always interesting to see what happens when we approach a high or low. you might get a valuable clue what the market is trying to do:


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  #4 (permalink)
Rome Italy
 
 
Posts: 22 since Apr 2019
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Silvester17 View Post
I do prefer short term trading, but I also like to look at a 30 min chart. especially the volume imbalances can be very helpful:




I even look at a daily chart as well. always interesting to see what happens when we approach a high or low. you might get a valuable clue what the market is trying to do:


Thanks for the reply.

I have noticed that many of them are noise for longer-term trades such as 10 points on the ES, 30-50 ticks on oil etc. It works better for scalping. My point is that these tiny moves caused by imbalances, absorption, spoofing etc don't determine what the price will do in the bigger picture. I used the ladder charts for a couple of months to scalp which worked out fine, but I prefer taking longer trades based off the 15min + 5min charts. Do you agree with me here?

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  #5 (permalink)
Market Wizard
Columbus, OH
 
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Platform: NT 8, TOS
Trading: ES
 
Silvester17's Avatar
 
Posts: 3,578 since Aug 2009
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Incognito View Post
Thanks for the reply.

I have noticed that many of them are noise for longer-term trades such as 10 points on the ES, 30-50 ticks on oil etc. It works better for scalping. My point is that these tiny moves caused by imbalances, absorption, spoofing etc don't determine what the price will do in the bigger picture. I used the ladder charts for a couple of months to scalp which worked out fine, but I prefer taking longer trades based off the 15min + 5min charts. Do you agree with me here?

I think it depends what you're looking for. but I certainly don't disagree with you

me personally, I'm not really that much interested in the big picture. I prefer to get in and out in a trade as quickly as possible (5-10 ticks targets). the imbalance levels (including some delta calculations) normally provide a pretty good location to enter a trade:


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  #6 (permalink)
Rome Italy
 
 
Posts: 22 since Apr 2019
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Silvester17 View Post
I think it depends what you're looking for. but I certainly don't disagree with you

me personally, I'm not really that much interested in the big picture. I prefer to get in and out in a trade as quickly as possible (5-10 ticks targets). the imbalance levels (including some delta calculations) normally provide a pretty good location to enter a trade:


I see! Don't you over trade that way though? Cool setup, is that a preset chart on the gomi indicator?

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  #7 (permalink)
Market Wizard
Columbus, OH
 
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Incognito View Post
I see! Don't you over trade that way though? Cool setup, is that a preset chart on the gomi indicator?

it sure looks like overtrading. but not every day is that way. this is extreme. also when there're that many signals, the market normally moves very fast and I miss a lot of the setups simply because I'm too slow.

and yes those are the great tools from @gomi. it's not a preset, I did add a few additional conditions or filters.

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  #8 (permalink)
Munich, Germany
 
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I would call my self an orderflow trader - in the core a scalper.
I combine this with some set-ups and what else is going on in the markets and happened the last few days.

As many people would say: only go for longer-term...be it intraday or swing etc....

From my experience, the longer term you go for, the more important are sentiment...fundamentals, etc...

For me, order flow is doing pretty good in the very short-term.
But after that, I am losing touch with the market because other forces become more pronounced.

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