Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
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 for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
It's more a means to figure if there are more buyers or sellers by a certain %age at a particular moment in time and even whether the same are proceeding to successive price levels also eg. "stacked". Think of a tug of war game. Are there some % of players pulling on one or the other side of the rope by some %age. What I'm wondering is which is a better indication of the imminent price direction: a %age of one side greater than the other OR a %age of the higher respective sides per the whole group holding onto both sides of that rope.
Hello Rick,
Can you:
1) Please provide the source of your statistic regarding the 500 units. (I'm assuming 500 units means 500 contracts)
2) Did you backtest this? If so over how many days or weeks?
2) Do you have a tool or indicator that allows you to watch the number of 'units' in a 5 second block - if so what is it?
3) Do you know if this same statistic of 500 units within a 5 second block also applies to other other markets?
Thanks
I'm beginning to become a believer in orderflow and found a nice way to configure NT8 for Delta/Orderflow with Diagonal Imbalances. <see attached> I've included the NT8 app setup Volumetric template. What I'm trying to incorporate in my 1 min conventional Candle Stick chart <Ensign app side x side> is trapped overbot/sold situations for a quick scalp or beginning runner for 20-100 ticks in YM. Screen shot today captures a nice sideways example to ident a quick scalp/fade reversal in a ranging period. Wonder if I've got it yet as a Delta spike with Imbalance buyers on a false breakout may be a strategy (eg 09:21 bar on the NT chart but note the Ensign candle chart seems to have lost daylight savings time since the YM rollover to Sept front month)
Its been difficult to "read" the Delta orderflow / Imbalances but worth the effort to add to my bag of tricks in my Candle stick conventional. I particularly like Delta orderflow for a real time pulse of trade tone minute to minute.......SO FAR.
Fading a High Delta candle in a lower volume period is indeed one of my setups. Its my Set up A and works very well pre market provide there is no flow through volume. Or in other words, we need to see collapsing volume.
I would say its not necessary a reversal setup but more of a scalp for a handful of ticks and then we set a breakeven stop and see if its worth a gamble staying in longer.
I've added a Volume by price profile per your conditional observation. I agree volume says it all but even so I'm having trouble reading the orderflow by delta bars. Is it distribution/accumulation/running stops OR exhaustion? All in all its probably just another barometer of the current tone.....
It took me years to realise you can't trade Delta via fixed bars (i.e 1 minute bar).
You need just to see values. (I use data values set at 10 Seconds average) on a Speed Dial or in a footprint totals.
The idea is we need to see when a big move is happening in real time, not half in one candle and the other half in another candle.
So I trade when the Delta explodes as long as the Volume also is strong.
For Example on ES
Normally volume sits on average around 100 (Average each 10 seconds) and delta half of that. When a big move occurs, Delta can explode to over 500 positive (safe Long) or negative (safe Sell) values for a short time.
How long you stay in is up to your strategy, its just a no draw down entry.
Delta is just the actions by the masses deciding to go long or short - the correct direction depends on absorption and the amount of bids or asks presently sitting on the books.
But really, follow Long Delta if the Sellers have excess orders sitting on the chart and its easily an imbalance.
It's been nearly a year since I responded to that fateful question, "Is order flow good shit, or what?" (I paraphrase somewhat, but I believe that captures the essence of the query).
Since that time, I've spent countless hours living, breathing, and sleeping order flow. Jigsaw and I became fast friends, to the point where I can now do a passable Peter Davies impression. In my beloved Sierra Chart, I have multiple DOMs constructed. I've built and contemplated heat maps, and have viewed low time-frame swing charts next to price ladders next to variously filtered time & sales "tapes".
And then...I stumbled (as I so often do) upon the following website:
And BAM! There it was. Or rather, there it wasn't. Because Alberto, the proprietor of the site--and YouTube channel of the same name--had discarded the guts of the conventional DOM and just used price, volume at price, volume imbalance at price, and cumulative volume delta to trade. Basically, price and a few volume variants.
For me, it's the ultimate KISS, as applied to reading the market in the moment.
Of course, that's just me.
At any rate, I pass this on to the community. Maybe it will float your boat, maybe not. I've emailed back and forth with Alberto several times and he has responded to my questions and comments with unfailing patience, courtesy and, I feel, generosity of spirit. And whereas previously I clenched my buttocks mightily when working the ES using order flow, I now sit calmly and even hazard a smile while using Alberto's approach.