is orderflow the holy grail? Observe these charts

Discussion in 'Trading' started by 1a2b3cppp, Aug 10, 2018.

  1. I recorded the ES today on a 2 second chart having the color of the bars based according to which side of the DOM had more orders.

    It is not the holy grail.
  2. Previous

  3. Before someone says but yes it is the holy grail, if we look more closely we will see that we will get stopped out continuously if we enter when the color changes.
  4. Price goes to where the orders are. Supposedly. But not exactly according to these charts.

    The charts posted here were based on using 10 levels on each side. I am trying to change it based on a smaller amount but am having trouble getting the script to work.
  5. Recognizing "order flow" is the Holy Grail only if you can front-run it.
    777 and FreakofNature like this.
  6. traider


    You need to specify how many ticks you are trying to predict. If it's too many, it's unrealistic to expect the DOM to tell you as it is best used as a ultra short term indicator. If you can scalp at high speeds with reasonable fills, automated DOM will be good.

    It's not just the size of the bid asks as these are easily spoofed. Other things to consider are the refill rates when a particular dom level is hit etc.
    777 likes this.
  7. The holy grail is that there is no holy grail

    it takes dedication, years of work and plenty of capital

    it's probably the most difficult way to make money in life

    All other ways to make money are way more easy and have much higher chance of success
  8. Just a few, honestly, but I wanted to see if it would determine market direction.
  9. padutrader


    i scalp using volume and it is the same there: you get out inside of 1-2, 5 M bars, most of the time though you do get an opportunity for 5-6 bars once or twice a day.
    before you get excited it is not absolute volume but volume spread relationship
    #10     Aug 10, 2018
    IAlwaysWin likes this.