Good day guys. Is it wrong to say that you can do technical analysis on the market depth. As i see there is no way to display that info in a graph, and all the products out there are showing just a snapshot of the state of the market that refreshes couple of times per second. Do you guys believe that market depth is something that every trader will use, just like all of us are using charts? At the moment not a lot of people use it as it's hart to read that Level 2.. what are your strategies, would you change them if you would have more info...what are your thoughts on this?
My thoughts....if you could make an app that does technical analysis and maths on the market depth, I'd pay all of the money for it. At least, all of my monies
I am not really understanding the concept ... Aren't there plenty apps that slice and dice orderflow in every imaginable way possible? Jigsaw?
There are places like Jigsaw but correct me please if i am wrong, but none of them show you the historical view of it, of the market depth. it's not possible to use that information like a chart and see past behavior or imagine...create patterns on market makers that correlates with the price....you can only see the current state of the market and after it disappears. I believe that having that insight in the market would be immense as the whole dynamic of the big players would change ( this would be at the point where the majority of traders would use it, until then it would be just an edge for a very big number of us using it)
Isn't this what the bookmap does? All those bubbles represent state of the book at the moment I think. I haven't really looked in any of this in depth ... tmi afaik. https://www.elitetrader.com/et/threads/the-thing-about-trading-breakouts.333541/page-3#post-4938386
Yes, BHP BHP Group Ltd This data is sourced from the ASX. All data from ASX is delayed by 20 minutes. Click here to view data for BHP on Chi-X Australia. Total Trades Total Volume Last Trade V.W.A.P. Time First Traded Time, Last Traded Price, Volume, Change, Value, Number of Trades
Bookmap is something in the range of products that i am talking about. Still, the chart there is still only for the price with additional info attached to it. That is something new but not what i am talking about. Seeing the fill or kill orders and taking the noise out of the market, this neural network analysis that i am talking about is the tech that only big institutions have. That type of information to be given to traders will ultimately change the approach traders have to the market, as they will actually see what is happening and will stop getting distracted by the price. That is what i believe is the problem we as day traders have. We always look at the price but never at the powers moving it. And i believe i will have the ,,flashlight'' to show them to everyone. I am just wandering is people will see the importance behind it or will they still use the same techniques as before
Sorry, how can you know if the order was FOK? That info is not available to anyone except whoever sent the order.