Trading based on bid/ask (image)

[bone]

I would be concentrating on the top ranked correlations to NQ - both positive and negative. That would be a hellavu lot more productive than volume that’s for sure.

I can’t recall ever giving a shit about volume when I scalped Treasury Bonds in the pit - but I sure as hell was looking at the Cantor Fitzgerald OTR cash market screen, and the Yen, the Dollar Index, the S&P 500, Gold, and Crude Oil up on the big boards.

Volume is a red herring. It’s not going to help you in the here and now. But if the third month Eurodollar is following the Yen tic for tic - that’s helpful in the here and now. If CL and 6E are Trading tic for tic... That’s tangible. That’s tradeable.

 

[1a2b3cppp]

1. Bigger traders and Commercials iceberg orders all the time. They don’t show everything at once.

2. Instead of trying to divine the impossible out of volume - might I suggest you explore what actually drives order flow in NQ?

Does it find itself influenced by other stuff than ES?

 

[1a2b3cppp]

What was that bright yellow lines order size at ?

It just means they are bigger orders than the rest, not a certain size.

 

[1a2b3cppp]

I'm asking is the NQ influenced by contracts other than those that influence the ES.

 

[bone]

I'm asking is the NQ influenced by contracts other that vary from those that influence the ES.

The answer is yes. And I'm not going to do your research work for you. Note that there are trading days where ES is stronger or weaker than NQ. There are sector rotation flows in to and out of tech stocks.

 

[bone]

Does it find itself influenced by other stuff than ES?

This is an educated guess, but I would imagine that the top ten market cap stocks in the Nasdaq composite 100 would be more influential than the ES. After all, there's heavy HF arbitrage between the NASDAQ basket shares and the NQ futures. And even if they lagged, there's money to be made in that scenario as well.

You can waste a career chasing volume. You do not know the participants, the motives, the holding durations, or the performance history of any those trades which make up that bid/ask volume.

 

[greg500]

Alright individuals, last night I saw this:

OBSERVE THIS IMBALANCE.

View attachment 189122

Hello,

I trade the ES via DOM(price ladder scalping) Scalp entry for an Impulse move.. Average trade time is less than 1 minute unless I get an impulse. Then I'm holding on, following the price with a Stop placed at the next Swing level.

When I see unusual Size appear on any DOM level, I watch to see how the market reacts... For me, is it real ???.. Does the quantity keep changing, is larger size starting to go off on the current trade.

Unequal size on the DOM is sometimes referred to as a Liquidity Vacuum... Yes, a silly name...

During the day, as price is moving, "let's say Down", you will see larger orders down on the Bid side.. vice versa. "Not always but as a rule for me."

I am very aware of the Depth but not overly concerned.. If the market approaches one of the large orders, Now, pay attention to what "goes off"... Did 200 contracts buy immediately. Did the depth stay the same or reduce. Does price bounce of the size "X" number of ticks and then go right back at to the level..

There are so many more concepts with DOM price ladder trading.. Very detailed to explain.

It's only my opinion, if you are going to trade from the DOM price levels, the Heat Maps, Book Map Tools will be of limited use... The depth of market is Outside the current trade and can change rapidly...

Just watch how the price reacts when you see these imbalances and remember, orders are hidden, pulled and stacked...

Regards,

Greg

 

[CALLumbus]

Hello,

I trade the ES via DOM(price ladder scalping) Scalp entry for an Impulse move.. Average trade time is less than 1 minute unless I get an impulse. Then I'm holding on, following the price with a Stop placed at the next Swing level.

When I see unusual Size appear on any DOM level, I watch to see how the market reacts... For me, is it real ???.. Does the quantity keep changing, is larger size starting to go off on the current trade.

Unequal size on the DOM is sometimes referred to as a Liquidity Vacuum... Yes, a silly name...

During the day, as price is moving, "let's say Down", you will see larger orders down on the Bid side.. vice versa. "Not always but as a rule for me."

I am very aware of the Depth but not overly concerned.. If the market approaches one of the large orders, Now, pay attention to what "goes off"... Did 200 contracts buy immediately. Did the depth stay the same or reduce. Does price bounce of the size "X" number of ticks and then go right back at to the level..

There are so many more concepts with DOM price ladder trading.. Very detailed to explain.

It's only my opinion, if you are going to trade from the DOM price levels, the Heat Maps, Book Map Tools will be of limited use... The depth of market is Outside the current trade and can change rapidly...

Just watch how the price reacts when you see these imbalances and remember, orders are hidden, pulled and stacked...

Regards,

Greg

Finally, at least one here who knows how to trade very shotterm/ scalp. But to understand these things you have to sit on your ass and do the work... most people here it seems just want to have the dollares served on a silverplate.

 

[MarkBrown]

Hello,

I trade the ES via DOM(price ladder scalping) Scalp entry for an Impulse move.. Average trade time is less than 1 minute unless I get an impulse. Then I'm holding on, following the price with a Stop placed at the next Swing level.
Greg

Greg,

my comments

i find your comment about impulse very interesting. there are impulse moves that don't go anywhere and there are some that give good follow through.

i have a framework that tells you when to scalp, buying on down moves and selling on up moves. these scalping moves will be connected by mini pulses that don't really follow through much.

but every now and then a few times a day you can get really good impulse move that does follow through and transitions into larger momentum moves.

my question

are you trading in the direction of momentum or reversion to the mean?

Thank you,

Mark

 

[ElectricSavant]

Call,

When I am done with this thing..your going to beg me to go live.

ES

Finally, at least one here who knows how to trade very shotterm/ scalp. But to understand these things you have to sit on your ass and do the work... most people here it seems just want to have the dollares served on a silverplate.