EMini Dow 5$ : Reading the book

Discussion in 'Index Futures' started by Big_M_Surfer, Jul 10, 2006.

  1. Hey Surfer,
    I think what you are referring to is also called "ACV" - Accumulated Contract Volume. Many of the software packages (J-Trader, Ninja Trader, Button Trader) let you view the limit order book in real-time.
    There is an interesting thread on using it to "scalp" the ER2 here:
    http://elitetrader.com/vb/showthread.php?threadid=68098

    It's pretty interesting stuff, though as I pointed out on that thread, I have researched it and backtested some theories and my conclusion is that it can be a useful tool, but you need to use caution, it isn't as easy to interpret as some believe.
    W
     
    #11     Jul 12, 2006
  2. tks to all,
    Murray do you have that article? (SFO MAGAZINE)

    Yes interesting thread ishallreturn99, I'll read all, and I'll be back soon.
    Let's see if we can develop the subject, I know that it's a well kept secret edge, if someone found it by long studying/trying, is not well motivated to share...

    let's see

    good trading day to everyone, the mkt will open in few minutes,

    B_M_S
     
    #12     Jul 13, 2006
  3. #13     Jul 16, 2006
  4. Yes,
    the generally theory works.
    Enter in the direction of accumulated volume on the order book. I.E, if there are way more bids, go short, 'cuz prices are going DOWN, and vice versa.

    It DOES work...but then it will get to an extreme level and REVERSE, so people must be cautious when using the ACV as an indicator, and make sure and use other confirming indicators as well (I personally use ACV AS a confirming indicator rather than a primary one).
    W
     
    #14     Jul 16, 2006
  5. ===============
    Big-M- Surfer;
    sfomag.com


    Free email subscription , last i looked [april 2006];
    free electronic back isues also.

    Ride the tide:cool:
     
    #15     Jul 17, 2006