how to read order book charts and time& sales as a system?

[schizo]

i cant seem to find a good explanation about the mechanics of those 3 working as s system for a trader to work with

like what should i be looking at when looking at those 3 and what does it mean when certain events happen
basically im trying to understand what traders are doing while im looking at those.
(im observing an effect but dont understand the cause most of the time)

for example when chart is moving sideways the order book has a massive green wall but all the orders are coming through red with no green.

or when orders are coming through green with no red but the chart price is moving downward...
just two examples i can think of. im sure there is more

Man, you left out important detail like what timeframe you're looking at. If all 3 are synched to the same timeframe, they should "technically" all move in tandem. If DOM is selling off, the chart should also show sell pressure.

Anyway, unless you run into an attention-seeking troll, nobody will spoon feed you here. You need to do the hard work yourself. Most importantly, if you want intelligent replies, you need to also ask in an intelligent manner. So far, your questions are all over the map without any details.

 

[mute9003]

Man, you left out important detail like what timeframe you're looking at. If all 3 are synched to the same timeframe, they should "technically" all move in tandem. If DOM is selling off, the chart should also show sell pressure.

Anyway, unless you run into an attention-seeking troll, nobody will spoon feed you here. You need to do the hard work yourself. Most importantly, if you want intelligent replies, you need to also ask in an intelligent manner. So far, your questions are all over the map without any details.

im asking something i dont understand.
When you were new and learning were your questions good?
If i know how to ask a better question chances are i would already know the answer by then.
I dont even know what i need to ask about to get the right answer i ask in the best way i can describe.

 

[mute9003]

Im noticing this on one second timeframe
I use one minute and 5 minute frame and then have another chart lined up next to time and sales and order book for that exact purpose of getting the feel for how they move.
And thats why i came here to ask the question because how they relate to eachother doesnt make sense to me. So i asked for more technical info. And all im getting so far is.
"We had to spend 1000 hours because there was no help available but we not gonna share any useful info with anyone because now we are bitter about not getting any help so we gonna pass on this toxic mindset to the new generation of traders"

So we created a forum to help other traders and share information but all we really doing is telling everyone to struggle like we did and not share any of our knowlege.
So basically yall created a useless forum to make yourself feel better while barely providing any help at all.

 

[p0box4]

Maybe add a screenshot/recording of an example that's unclear to you since as Schizo said, they should move in tandem.

 

[Bad_Badness]

i cant seem to find a good explanation about the mechanics of those 3 working as s system for a trader to work with

like what should i be looking at when looking at those 3 and what does it mean when certain events happen
basically im trying to understand what traders are doing while im looking at those.
(im observing an effect but dont understand the cause most of the time)

for example when chart is moving sideways the order book has a massive green wall but all the orders are coming through red with no green.

or when orders are coming through green with no red but the chart price is moving downward...
just two examples i can think of. im sure there is more

How Order Book charts and T/S are presented can vary with the implementation. Which software or interface are you referring to?

Without knowing what system you are on, it sounds like you are seeing fills on one side of the bid or ask, which is a common occurrence, orders hitting the bid or hitting the ask in droves. Happens everyday in highly liquid instruments.

Depending on the instrument, the way to move large orders vary. It might be simply be a price arrival or time arrival algo being applied to a large block. For instance, look at IB TWS description of their algos. Now pretend you got 100K shares of NVDA to sell. Given the spread is wide, in a $ scale, which algo would you choose? Now consider how that algo would generate the orders.

i.e. what you are probably seeing is large blocks being broken down in to 20x orders based on the spread, price movement and specific time and $ requirements set be the algo user.

Hope this helps.

 

[oshjdf]

What instruments are you trading?

 

[mute9003]

.

Thanks thats basically what im looking for technical information.
I will have to read it another 10 times to understand but it seems luke what i was asking about.

Webull added one second intervals recently so i set it up in a separate monitor to watch how "live market" moves to try to better understand how the bars are formed and try to understand what traders are doing during that.
This is stocks i dont trade anything else yet just learning basic stock trading for now

 

[QTrader20]

Learn how to filter and manipulate the data (if your platform allows you to do it) and then, combining it with your own setups/strategies. It's pretty much useless on their own.

 

[Sprout]

Thanks thats basically what im looking for technical information.
I will have to read it another 10 times to understand but it seems luke what i was asking about.

Webull added one second intervals recently so i set it up in a separate monitor to watch how "live market" moves to try to better understand how the bars are formed and try to understand what traders are doing during that.
This is stocks i dont trade anything else yet just learning basic stock trading for now

Thinking that you are observing anything 'live' is a misnomer, even at a 1 sec resolution. Webull participates in PFOF and as a retail trader, your function is to provide liquidity to more informed traders using algos trading size. Even at that, retail participation is small in comparison to larger commercial and institutional interests. Intraday is dominated by competing SLP algos.

The system is designed to be obfuscated and catered to 'insiders.' That doesn't mean you can't extract profits from the market, just that any 'pattern recognition' you are hoping to derive can only reliably come from a data-driven methodology. Unfortunately, most of the marketing that is directed towards the retail audience creates unrealistic expectations based on hype.

Looking at flashing pretty colors is similar to pavlov conditioning. You can verify this for yourself if you notice your emotional state fluctuating as you observe the markets.

What makes the task even more difficult and as others have pointed out, mentorship is a better path but that in itself is difficult to discern who is worth learning from and whom is barking snake oil.

 

[mute9003]

maybe someone can suggest me a good book or article or any access to more in depth information about how it all works.

im not against learning. it just seems hard to find relevant information that still applies to today's market conditions and not when you had to phone in to trade.