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I will setup screen recording soon as upgraded CPU/board/more RAM on PC runs very well. Plenty of spare power.
Not sure if you were following yesterday's market closely but there were many extremely interesting order flow happenings throughout the day. Many times the D&S looked just like it does before the NYSE close with massive orders each side. I scratched a short soon after placing, as 8,000+ orders appeared at same price after placing order! But as many times before, and I didn't want to trust it, the bids were pulled after 2,000 or so were eaten up and it went down 2 points as expected. Weird stuff. I might just review over weekend and drop a video here, but don't bank on it.
Update 11:50 EDT Friday: That bizarre D&S action just started again! Spoofs, super-spoofs, and whatever else.
It was my wife's birthday yesterday. Trading would have resulted in castration.
Here's a couple of things to look for as you replay it....
1) Say you get an iceberg on the bid - say 4000 contracts hit into the bid at 1960.25 BUT the market chews through it anyway and you tick down.
So now you are Bid 1960.00 and Offer 1960.25 - now there's an iceberg on the offer and 4 or 5000 or more trade there.
Bidders stepped up, sellers sold through it then the sellers stepped up on the offer and held it. That's good from a short perspective - quite often on only a very shallow pullbacks.
2) But let's face it - shallow pullback suck most of the time - so sometimes you look up and there's a step above but only 3 ticks. Leaning on those can often be disastrous. So for me it's best to let go through that close step which is often just part of a 3 tick cluster. Anyway - let it come back 6-8 ticks (or what is average for the day), to the next step up. Anyway - when it gets to that step - just look for nothing instead of looking for something. The nothing is 600 @ offer tick up, 700 @ offer tick up, 500 @ offer tick up - then 23 at offer, pause. Maybe a tick down and then back to it and 40 trade. You have the step - you have a full swing and you get no-one hitting into the offer @ a price. This is more seeing stuff no longer there in the order flow that seeing obvious things like an iceberg.
Just on the offchance you are not watching for these things.
Hope that makes sense...
If you have any questions about the products or services provided, please send me a Private Message or use the futures.io " Ask Me Anything" thread
Yes she is - she's an Asian woman and therefore 'obviously' subservient, I make all decisions in my household.
me "where shall we go for dinner honey?"
wife "up to you"
me "OK - let's go for an Indian"
wife "no - mai aroi"
me "Ok then, where?"
wife "up to you"
me "Italian?"
wife "no"
me "English?"
wife "no"
me "French?"
wife "no"
me "Chinese?"
wife "no"
me "Thai?"
me "OK - honey, if that's what you want, we'll have Thai".
See - Lord of the Castle, he who wears the trousers, ultimate maker of all decisions in the Toast household am I.
A little culture clash always keeps a marriage interesting.
If you have any questions about the products or services provided, please send me a Private Message or use the futures.io " Ask Me Anything" thread
pete, sort of a request/enquiry. VWAP, VA and POC are already included in the volume profile. have you ever considered including the "Mid" as well? (HOD+LOD/2). a simple but awesome functionality to have. just a thought.
thanks for the chop webinar today. big jigsaw fan.
This question had been puzzling me for quiet some time.
Note: I trade Indian index only excuse me if some errors
1> I understand Index is derived from set of stock. Example ES --> Citigroup, Microsoft so on.
Index will change when these stock prices change. How can Bids/Ask prices in Index futures effect index future price ?
2> Why do correlated instruments move with such precision (ES,NQ). Even if some diversion is seen for some time, they catch very soon.
This is a thinking man's/woman's question.
All derivative instruments generally have a few banks who have been charged with arbitrage responsibility. The intention is to keep indices, ETFs, options in line with the underlying basket of assets. I would advise you read some white papers on ETFs available online to see how this done. This would answer question 1.
As far as index correlation is concerned, this is largely the doing of market participants and self fulfilling prophecy. If you have access to wealth mgmt. firms who trade actively, I would advise that you seek an opportunity to shadow, if they will let you, of course. Its common practice for a portfolio manager to buy known correlated "Risk-On" instruments together and dump them together during "Risk-Off' modes. The herd mentality feeds this to some extent as well. The correlation breaks down when a fundamental news on Apple will cause Nasdaq, for example, to totally run on its own for a few days causing a mixed market scenario. During these days, NQ will look nothing like ES. They will resume the correlation again in the absence of any significant underlying fundamentals.
Hope this helps.