Depth of ES Market

I don't trade this but I have noticed in the Emini if you have > 3 to 1 on the cumulative ask over bid(say 2000+ ask over 600- bid) price will move up - exact opposite of a newbie's read of level 2

Could be exploited by a program that read e-mini depth of market

You could be right though it might just be Meteoox playing games
 
Quote from buzzy2:


They are real but possibly misleading. Sometimes I observe the following: price is moving sluggishly but it looks like it's moving up, say. Then suddenly big sell limits worth thousands of contracts appear on the ES 3/4 ticks above the best ask. So you sell because somebody big is trying to sell, right? wrong!, price keeps going up and 1 tick below those levels the big orders are quickly pulled. Somebody (metoox?) was trying to make you sell. But sometimes those big orders are legit and they stay put until they are filled, so you cannot use them as a contrarian indicator either. Depends on the situation, there are more 'fakes' when market is sluggish, otherwise they can backfire.
More...

I said they were real, not that they meant a dang thing. :p
 
new on this site... but glad I got referred; some real valauble stuff here, and good people so it seems. Always wanted to set up a trading club/team in Chi for off-floor traders... U know. shares ideas, pontificate, ruminate, philosophize, coach, mentor one other, etc.

I'm mainly position trade options on equities and indexes, and do various strategies. Have had fairly consistent and good success with indexes. Also trade stocks.. and looking to do more "day trading" in the new year.

Anyway, just was curious having read your posts for a while.... why you say "but above all you gotta do size". Think that might be a topic for an entire thread.. but if U got time, would appreciate elaboration on your view.

Thanks

IM
 
Most times I would say that the depth for the ES and NQ are about as useless as tits on a bull, but there are certain times when they can serve as a solid tell...

Overall I would rather have it -- than not, but using it as a solo tool to enter and exit positions would be a very futile endeavor IMO...

PEACE and good-trading
 
if someone is on ask side with 1000 or 700 contracts somewhere in the emini depth L2 @x dollar price, put a buy stop order 1 point further up. then you will know wheter that sell is for real or not. If that volume is consumed, the seller of that volume will hurry up to cover his short fueling the price further up. I have not tried it but just 2 cents
 
I do have the size on my TWS screen, but for one use only - to know that I'm still receiving live prices. Sometimes the bid/ask moves so slowly (during lunch, for example) that it's handy to know that all's well.
 
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