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I had a question regarding entry signals.
I trade using market profile and key levels.
Now, when price gets to the level I’m watching I usually wait to see the order flow around the level to determine if I think the price is going to break out - or reverse.
Now I’ve always knew about the concept of an entry trigger, and I’ve been trying to build an entry trigger based on market delta, since it’s very hard to spot certain orderflow components in real time.
I would like to know for those who use orderflow/market delta as entry trigger/button, what are you looking to see in order to enter your trade? Is it just delta changing from one color to another? That’s what I used to do untill now as my trigger but I just feel like it’s not a valid enough trigger to rely on.
For those of you who have any experience/expertise in the area, any information would be much appreciated.
Can you help answer these questions from other members on NexusFi?
the idea is to see the limit order book flip at the key level . if the market is trading in the direction of your key level the limited order book will be stacked on the side that is driving the move. when it reaches your key area the speed of the move should start to slow down , then a small pop in the other direction . its at that point the limit order book should have flipped and be stacked to the other side . see book map for examples .. if you try and use delta, price will likely have moved away from you key area by the time it shows up there . hope it helps
Wow this seems really interesting.
So I would basically be looking for a place where contract volume starts to shift from one side to the other? (Less and less buying - more and more selling on a short trade for example)
Is there a way to achieve this without actually using bookmap? ( maybe extremely short period orderflow charts like 5, 10 seconds?)
Thanks a lot.
there are order flow heat maps on a lot of trading platforms. the things i reverenced is not as easy as eating cake . you have to work on it. book map is one of the leaders in the field. the order book is a leading indicator , the orders are in the book but have not been executed . delta is a lagging indicator the orders have to be executed to show up in that market generated information .
Assuming you mean cumulative delta, and not the market delta platform, have you tried looking at it as a divergence indicator.
In the same way one might use RSI, so for instance price pulls back and then moves back up to make a higher high but the CD doesn't, suggesting the move hasn't got strong buying supporting it.
Or conversely price makes a higher high and runs out stops shown by a spike up also in the CD. But price then drops back below the stop run level and buying dries up, suggesting price might go lower for awhile until it can attract more buyers.
You do not win as a trader, you just get to play again the next day. If that game doesn’t appeal to you then you should not trade. Gary Norden
