Not sure what this is called.. but I feel like I've read about this type of indicator/chart before. I'm trying to build a chart similar to this to help build upon a strategy I want to test so I am able to view market flow of buying/selling pressure. Going to post this video here (skips to specific time): In this video (in case you don't want to view) shows him explaining 3 charts he uses that displays this. The top is price action. The middle is the large buyers/sellers filtered to 20+ size lots. And the bottom chart is showing 1-19 lot sizes, you're typical retail traders. With this I'm ultimately trying to visually see what is going on with the buying/selling action that would provide me a signal to enter a trade long or short. If you could help me in identifying what this would be called that'd be great. Forgive my ignorance and lack of knowledge... I'm coming here hoping for some help. I'm a newbie. Using multicharts .net64 platform.
Since when is 20 lots a large trader? That's only 2 mln notional... If you want to look at large trades look at at least 100+ lots on ES. Probably even more... 250+? Anyway, how to trade price action is very debatable... I would say if a lot of volume trades around a certain level this creates an interesting point for the future, since many traders have in an interest in this level. Either to add to position when it hit this level again, or to cut position when it moves through it. Whether to go long or short... yep... that's the question!
Ok. Maybe I'm wrong here in thinking that when I see a 20+ lot trade print on the tape that's a sign that a larger size trader is buying/selling. I feel like I cant remember when I've seen a 100+ lot trade print on the tape.. Maybe I'm missing something. Regardless, I'm looking for what this type of indicator is called so I would be able to set something like this up on my charts.
$2 mln is not a large trader... especially in futures. You only need about 100k to trade that since margin is about 5k per ES. Which market are you looking at? It depends as well on liquidity etc. To me it doesn't really mean anything when 20 lots trade... it starts to make sense when it aggregates to something bigger. A lot of times a larger trade is broken up anyway, because they either take out 2 or 3 ticks... or it takes longer to fill a bid or offer... Maybe look at a volume histogram which shows volume on each price level...
I'm looking at the ES. So basically what you're suggesting is that a 20~ lot size trade printing on the tape is irrelevant.. And it's not a big enough indicator towards buy/sell pressure. Right? Anyways, for my own benefit.. I'm just curious what this type of indicator is or how I could set something like this up.
Yep, in normal trading hours the book is filled with what... 500+ best bid and offer... 2 ticks down 1000+? So 20 lots not that big indeed. There are quite a lot of volume based indicators... Volume At Price? Money Flow? Maybe make your own with some aggregate volume on bar vs average?
At about the 12:30 mark in that video how is this indicator showing "the big's" buying and "retail" or smaller traders buying. What is this indicator showing? How can it determine if the big boys are buying or selling? That's what I'm getting at. I'm not talking about any offers or bids showing up on the book. Again, sorry if I'm not explaining or asking this correctly. My goal is to determine, as stated in this video, the overall capital flow.
Then look at CMF, Chaikin Money Flow. I just think this guy in the vid is full of shit... like most of them... saying "the bigs are buying again and retail joins them..." Remember, he's just trying to sell his stuff to you... so don't get too caught up with what he says... there's a dime a dozen of those guys...
I believe Footprint is the term they use for that style of chart. Nothing I've ever really looked at but see it a bit while browsing around. https://www.google.ca/search?q=foot...ved=0ahUKEwiL0qO27ZLPAhXCJh4KHSA9A0UQ_AUIBigB Look up multicharts "Volume Delta" as I do believe Footprint is a patented name/indicator. Looks similar to me but like I said its not something I've ever read into much so they all kind of look the same.
For sure. But I'm curious to what he's using here to determine these "signals" ... Because in theory I suppose that if one could determine when the large players are coming into a market buying or selling one could take a calculated guess as to the short term trend that would follow. Again there's no crystal ball out there I'm just trying to test out some theories/strategies.