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Order Flow Trading Techniques with tickStrike

TradingPub Admin | February 13, 2013

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In this video, Aamar Hussain of tickStrike emphasizes the difference between the Pit and our current electronic trading environment.  He also introduced what institutional, commercial, and propriety traders are, as well as the algo’s , HFT’s and the dark side. Most importantly, Aamar showed the attendees how order flow is the key to understanding where the market is headed

High Points: By understanding order flow, it will help to determine key levels as well as true market moves as opposed to many of the head-fakes that occur in the current market.

Here is a quick overview of the great education shared during our live session (Scroll down to see the recording)

THE RECORDING CAN BE PLAYED BY CLICKING BELOW:

To access tickStrike using a 50% off coupon code alongside having 7 days to test it risk free, click the link below:
 ACCESS HERE (Use Coupon Code: ALERT7)

What Order Flow Is

-        The fundamental result of the market auction mechanism

-        Facilitates the supply and demand

-        All price action is a product of order flow

-        Price discovery is powered by cumulative order flow action

Understanding Order Flow

-        The best offer is the lowest price anyone is willing to offer to sell

-        Selling into the bid

-        Buying into the offers

-        Marriage between buyers(bid) and sellers(offers)=order flow

What Tape Reading/Order flow analysis Is

-        Analysis of the rate and size of orders at any given point in time.

-        Looking for confirmation of market inflection points

-        The relationships between orders Bid vs Ask

-        Looking for momentum initiation

The Problem

-        Order flow/tape reading is a powerful tool, but there is just too much information to pay attention to

-        The mind can only interpret/focus on a small amount of visual stimuli at any one time.

Recreating the Pit in a Digital World

-        Pit Noise

  • the escalating sound of buying/selling action in the Pits
  • gave indication of the positioning of large traders
  • created a herd effect

-        Centralized Electronic exchanges offer opportunity

  • Pit noise for the Digital Age
  • Real underlying trade information
  • A systematic and automated analysis

To access tickStrike using a 50% off coupon code alongside having 7 days to test it risk free, click the link below: ACCESS HERE (Use Coupon Code: ALERT7)

What Traders Should Pay Attention to.

-        Order Size

-        Rate Orders

-        The relationship between the two

-        Volume

What tickStrike Does

-        Adapts to changing the market conditions

  • Increasing volume
  • Decreasing volume
  • Volatility fluctuations

-        Designed to learn and adapt to the market

Why Use tickStrike Now

-        It works best in volatile conditions

  • Euro crisis
  • Global sovereign debt issues
  • Recession

Using tickStrike-Find Volatility

-        Volatility means opportunity for profit

  • Follow the market movers
  • tickStrike only sounds when noteworthy action
  • helps avoid trading is slow choppy markets
  • reduces itchy trigger finger
  • increases trading focus

Using tickStrike-Trade Management

-        Enter a long trade

  • Stays trade in longer
  • Helps to let your winners run
  • Provides objective information in terms of strength of buying/selling

-        Stop Management

  • Hears order flow against you when entering
  • Exits trade earlier

Using tickStrike-Trading Initiation

-        In more volatile environments can use tickStrike to initiate the trade

  • Hears the buyer coming in with the trend, can use this to enter trade
  • Hears sellers coming in with the trend, can use this to enter trade

Using the tickStrike-tickStrike Fading

-        tickStike is excellent for identifying capitulation moves

  • can use this powerful selling/buying as a time to look for reversal trades against tickStrike
  • In low volatility range bound environments low level tickStrike action can be a great contrarian signal to play the range

Using tickStrike-Breakout Trading

-        When breaking out from Support/Resistance

  • tickStrike can confirm the influx of buy orders with a long break out
  • can help identify fake outs, when a pop isn’t confirmed by order flow

Using tickStrike-Trade Conformation

-        Can be used as confirmation for any set up

  • You have identified a key resistance where you want to trade
  • Your trade set up is triggered
  • You hear sellers coming in you either
    • Initiate your trade
    • Add to your trade
    • Or simply ride the confirmation

Value of tickStrike

-        Audibly and visually see/hear order flow

-        Follow the Market Moving Participants

-        Quantity and understand momentum

-        Be Alert to changes in the market

-        Let winners run using flows

-        Cut losers short using flows

-        Adapt to changing Market Flows

-        Digital Pit Noise

-        Standalone, works with any charting platform

-        Data feed built in

-        Visual and audible gauge of order flow

-        Unprecedented support

To access tickStrike using a 50% off coupon code alongside having 7 days to test it risk free, click the link below:

 ACCESS HERE (Use Coupon Code: ALERT7)