Question about large blocks of orders in the book

July 3rd, 2021, 10:20 PM

Alright, so i know this is an ambiguous question but i’ve looked or tried to look everywhere to no avail.

So i’m currently in a trading combine in step 2 and i’ve noticed the use of large blocks of contracts to either support a price above or keep price below a certain point. I’m familiar with spoofing and layering and i’m not under the impression that all of these may be illegitimate or book manipulation. But sometimes, and literally only for a fraction or a second, these large blocks will appear, disappear, and reappear. Or a large block of contracts will appear on a pullback before price reverses. You can literally see it visualized on Tradovate’s chart in real time where it looks like someone is just keying in, and then cancelling the orders repeatedly

Is this to try and trick the algos? Or is it algos itself? Institutions trying to throw their weight around?

I’m sure majority of them are legitimate orders. But i don’t know of many people and/or entities that would plop down 254 /NQ contracts on the sell side for recreation. Is it possibly market makers rebalancing? Or other vendors delta hedging? Any insight is appreciated.

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July 4th, 2021, 06:22 AM

I believe it's market makers' spoofing around with the others. And it happens everyday, especially in ES to trap traders. Those who cannot distinguish between legit and fake breakouts / swings / extensions, will get hurt real bad.

My personal 2 cents on this: This is one of the best reasons I don't trust order flows and blah blah because you might be looking at 'real time X-ray of the market', but really you might be just looking at bogus orders about to cancelled momentarily.

People (like yourself) do use order flows I know, so I am not saying it doesn't work. I am saying it just doesn't work for me.

Just get some experience and you will understand when the 'games' are being played and when the real orders / movements are expected. Good luck.

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July 4th, 2021, 02:42 PM

lightsun47

I believe it's market makers' spoofing around with the others. And it happens everyday, especially in ES to trap traders. Those who cannot distinguish between legit and fake breakouts / swings / extensions, will get hurt real bad.

My personal 2 cents on this: This is one of the best reasons I don't trust order flows and blah blah because you might be looking at 'real time X-ray of the market', but really you might be just looking at bogus orders about to cancelled momentarily.

People (like yourself) do use order flows I know, so I am not saying it doesn't work. I am saying it just doesn't work for me.

Just get some experience and you will understand when the 'games' are being played and when the real orders / movements are expected. Good luck.

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I’m usually just trading price action and technical setups and using the book as additional information. But there’ll be multiple times where these blocks of orders are used tactically to prevent a breakout or to support price.

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Question about large blocks of orders in the book

Discussion in Emini and Emicro Index

Question about large blocks of orders in the book