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Yes, I'd like to chime in with some observations. Market Makers are
the "market movers"; and it's almost never that "Retail Buyers
and/or Sellers are 'in control' " .
It is for this reason that I'm probably one of the few who puts a
huge amount of effort in real time Analysis of the Depth of Market.
To do that, you need to have a decent DOM feed; and that means
you need to use a "premium" feed like Rithmic, or others; and
then, further, you need a "theory" which you can validate as
concerns how Market Maker's DOM placement patterns, yield
predictions about Market Direction...
This is a "heavy lift". I use the Rithmic DOM, and I process
every single update event extending out roughly 60 ticks (15 Points
in the NQ/MNQ contract) and the number of updates which need
to be handled reaches 1000 updates / second; so you have only
a millisecond or so to process each event. I queue up the data;
and process it, so that further incoming can take place......
Now, of course, since the "devil is in the details" just exactly
how, the information is processed is critical to any hope of making
a meaningful prediction; I've spent thousands of hours on this
very issue.
None of this should be interpreted as "bragging"; and any significant
progress in Prediction is a "big win"; even though the overall
problem is extremely difficult as a "nut to crack".
Major factors, obviously are 1) distance from the current market, as
you can imagine that very close, versus further away should probably
be interpreted slightly differently; and 2) "anti-spoofing" in an
attempt to determine the "real and persistent" volume which is
found at any Price level, and the 3) the question of how to handle
capture (hint: capture at a specific Price level) versus evaluating
it as a tier deviation from the current market ("tier specific") and
the correct approach requires a "merging" of those 2 methods
at the moment of "snapshot".
IN CONCLUSION
But I digress... Just to say that "the answer" is in the DOM, but
how to tease that out of the real time data is (trust me) extremely
difficult. But it IS TRUE that Market Maker makes Volume placements
( Bids and Offers) BEFORE the Price moves in the preferred
direction. Because of this, the DOM is one of the few Leading Indicators
which can yield predictions... Again, it ain't easy at all, so it's out
of reach for most Traders.
Sometimes the way you guys react to one another is similar to how religious fundamentalists react.
You have your beliefs. Someone make a statement questioning that belief.
You make snide remarks or question their competence.
Sometimes the other person reacts.
Etc, etc, etc.
The bottom line is this:
A perfect system or approach does not exist. Never has, never will.
The objective of having systems and rules is to run them to your best advantage and not to let them run you.
Trading is an art backed by science overlaid with your personality and imperfections.
Winners limit losses. They use money management. They have a plan and they all seem to have a different style or technique for trading.
None have the same "secret" trading rules.
They are not perfectionists.
So instead of picking holes in other people's ideas we should actually try to understand what they are saying and picking out what we find useful and discarding what we don't find useful.
Then we will learn something or not.
People would be more willing to share their ideas.
Sharing your ideas and getting constructive criticism would make them more robust or lead you to discard them.
Everybody benefits.
Now I know there is an emotional side involved in all human endeavors and trading brings out the amygdala responses that tend to override prefrontal cortex responses.
It behooves us to resist that both for our personal trading as well as for development of the community.
I read the whole topic, and among them, I saw a person who proposed that there is a Holy Grail, and that it should pay attention to speed, acceleration, and adaptability. I think his view is correct. On Friday, I observed the price pattern after the slowdown in the euro futures. The time was a period of integration before 8:30pm (UTC+8). This model is also applicable to various markets. I have observed crude oil, FGBL, BTC, Chinese futures, and the Chinese stock market. In the stock market, a person earned from 10 million to 220 million in 14 months. He recorded his real transactions. Most of them were posted online, and the same price pattern appeared before the increase. I also expressed this in the thinking of super scalpers. He is concerned about the trend of looking for market makers or large traders, because large trading orders change the market’s momentum and direction, and scalping can be conducted from the microcosm.
（The above is from Google Translate, the exact meaning may not be expressed）
