ES Journal Archive (2011)
- Thread starter Buy1Sell2
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Quote from Laissez Faire:
That may depend on how you view price, but as I view it the push was completed at 64. See how TICK pulled back at that level. What we don`t know is whether price will pull back, before making another push up or if the top is in. And even if the top is in, what is the downside target? May still not be worth the risk.
I`m always watchful for a top when I see price showing weakness at a recent prior high like this one.
But like been said already, this is low volume trading and a bank holiday. Price action that easily churns your account if you have a need to be in on the action.
Fortunately, I seem to be getting over that phase.
Good points LF about the TICK and especially about that this price action has the potential to churn your account. Good Trading.
If one got the urge to gamble and be in on the action, I think the simulator is an even better alternative as already suggested by bigsnack.
I prefer to trade only when I know I can win. That was written already in my first trading plan years back, but it is only lately that I find myself more and more able to follow it. Still not there yet. Impulsive trades still happen...
I don`t want my excellent trades to pay for all my miserable losers any longer.
Right now, I have an expectation of what price may do and it is not worth the risk for me as I remain pretty much clueless at this point. What have we got the last hours? A range less than 5 points?
Maybe if 60 broke or some sellers appeared I could enter, but I will wait for that to happen instead of guessing.
In truth, I think I`m done for the day, but I`m just observing while doing some other stuff. Hanging out at the bar, etc.
When people talk about delta, it's very common to use the term "net buying" or "net selling"
Not by any career traders I know. Sounds more like some noob saying "there were more buyers than sellers in the market today."
Your original post referred to +15k contracts and +25K contracts. Please let me know what software is out there that can track the number of market orders being executed. I'd like to look at it.
Oh, and I'm not your friend, sport.
Aggressive buyers lift the offer, aggressive sellers hit the bid, right?
Do I understand correctly?
And that is what the NYSE TICK attempts to track.
Am I right?
It is not dependent on the type of orders, but whether the aggregate sum of buyers and sellers are willing to lift the offer or hit the bid at any given time. Obviously, it does not matter whether market orders or limit orders are being used.
However, if a huge cluster of stop orders is triggered at the market, those will often cause a breakout as these orders will be competing to get filled on diminishing liquidity?
Still right?
God, I`m bored now. Back to the bar.
Do I understand correctly?
And that is what the NYSE TICK attempts to track.
Am I right?
It is not dependent on the type of orders, but whether the aggregate sum of buyers and sellers are willing to lift the offer or hit the bid at any given time. Obviously, it does not matter whether market orders or limit orders are being used.
However, if a huge cluster of stop orders is triggered at the market, those will often cause a breakout as these orders will be competing to get filled on diminishing liquidity?
Still right?
God, I`m bored now. Back to the bar.
Market orders, or contracts? Of course volume will give you contracts. Unfortunately with ES we have no way of knowing how many actual market orders are executed due to how CME reports transactions, but we know it's at least the number of ticks over a given range. More helpful to me than transactions is the volume itself, due to the plethora of tricks that can be played to split orders, for example.
Most software platforms these days have some sort of delta indicator. Investor R/T and Market Delta are very popular. NinjaTrader has its own "BuySellPressure" indicator built in though it only works in real-time, not historical data. I think MultiCharts now has delta as well.
For every transaction you see executed, it is reported as being transacted at the bid, in which case the volume for that transaction is subtracted from the net delta as a market sell was matched to a bid, or at the offer, in which case the volume for that transaction is added to the net delta, as it was a market buy order matched to an offer. This will tell you how many contracts were executed at the offer versus the bid over some period of time.
I'm trying to use self-control to be polite to you; please, refrain from being rude in your comments to me. Thank you.
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