Posted by Mike on Aug 24, 2015 in Blog
Delta is a term used by order flow traders to define the net buying or selling that took place for a given bar. It is calculated by using tick data and seeing who initiated the trade, either the buyer or seller. If more sellers initiated the trade, then the delta is considered negative. If more buyers initiated the trade, then the delta is considered positive. The reason delta is important is because you can determine the strength of a trend based on volume. As price trends...
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Posted by orderflows on Aug 2, 2015 in Blog
I have spent 20 years watching and trading futures based on order flow. The same concepts still apply from 20 years ago or even 100 years ago as they do today. When the price of something is cheap people buy it and it becomes a low. When the price is too high, people sell it and the high is made. What order flow provides the trader is the ability to stay out of the market when there is no reason to trade. It allows the trader to see both sides of the market, what is trading...
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Posted by orderflows on Aug 2, 2015 in Blog
At the most basic level of market structure it is buyers (demand) and sellers (supply) who move the markets. It is not mathematical formulas. Markets don’t move because the MACD or RSI reached a predetermined level. What causes markets to move is when demand exceeds supply or supply overwhelms demand. Indicators lag prices. When the market makes a high, there are no indicators which will say sell until well after the market has turned lower. What causes markets to turn and...
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