A Jack of Small Trades

The Achilles Heel of Technical Analysis, the "False Signal", Just Became an Endangered Species...

I absolutely cannot contain my excitement about NinjaTrader 8 (beta) enables us as traders to do with just a few clicks of a mouse.

First off, I would like to explain that we began development in preparation for NinjaTrader 8 over a year ago - so we have quite an extensive library of advanced order flow algorithms ready to take advantage of the next generation technical functionality that is baked into NinjaTrader 8, which is now available in a beta release.

Luckily, ...sceeto was chosen as one of a select few companies to participate in the very initial testing of NinjaTrader 8 (beta) so we have had some time to play with 8.

However, as part of our agreement to get early access to NinjaTrader 8, we have been under 'gag order' which had prohibited us from discussing our findings.

Raymond Duex, the CEO of NinjaTrader, has released us from this gag order so we can now show you why we are so excited about what NinjaTrader 8 (beta) unleashes.

NinjaTrader 8 has some insane capabilities that will allow day traders to have access to advanced order flow algorithms in a class that currently only professional quant shops enjoy.

You see, NinjaTrader 8 has millisecond time stamps accompanied by discrete and stable access to bid\ask data.

These features make granular analysis on your PC of order flow viable.


Free Workshop How to Obliterate False Signals by Leveraging Order Flow Insights


The bane of every trader is that dastardly 'false signal'.

"But there was a bullish moving average crossover! I bought and then the market went down! Arghhh...I am not worthy - and, oh yeah, the market hates me."

Well, this is poppycock.

The market goes where the market is directed to go.

The market is simply filling buy and sell orders.

If more buy orders come in...the market will go up.

If more sell orders come in...the market will go down.

Today's electronic markets are driven by order flow.

This webinar will expose the next generation of professional grade order flow algorithms that are being deployed that leverage information gleaned from data using millisecond time stamps and bid\ask information.

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The actionable information gleaned from this level of data granularity will blow your mind.

Whether you are a Fib trader, or use Elliott Wave, or moving average crossovers - you are going to have to deal with false signals.

In this webinar you will see explicitly how we monitor and observe:

  • Informed buying come into a market low.
  • Climax selling or buying in the order book.
  • Extreme imbalances in the order book which lead to runaway price moves.

You can layer the information surfaced via or Order Flow Bars onto any existing setup in order to help mitigate the inevitable false signals that we have all had to deal with.

For instance, if you get a 'Buy' signal from your setup but these Order Flow Bars indicate that the trade is dominated by selling, you may want to consider standing down from this 'Buy' signal.

You can then wait for a 'Buy' signal execute when you know that under the hood of the market, 'they' too are buying.

Make sense?


Free Workshop How to Obliterate False Signals by Leveraging Order Flow Insights

Have you had a chance to watching our order flow stream which we surfaced last week in order to show folks the efficacy of our Order Flow Bars?

As it was a holiday today, we figured that things would be slow and that there would not be much of interest...but go figure.

Take a gander at this picture perfect alignment of the stars where an ABC corrective wave concludes at a known level (2004.50) and is accompanied by exhaustion in the order book, which is documented by a White Order Flow Bar.

Picture Perfect

 

 

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Trader’s Tip | Range Bars vs. Time Based Bars

Our method relies on Range Bars (or any bar using a chaotic price series) not on time base bars. 

Three rules of range bars:

  • Each range bar must have a high/low range that equals the specified range.
  • Each range bar must open outside the high/low range of the previous bar.
  • Each range bar must close at either its high or its low.

The primary reasons that we use Range Bars as opposed to time based bars are:

  • By aligning order flow with Range Bars we can readily visualize where order flow had an impact on a change in Price.
  • You can define a pivot at the close of range bar whereas with time based bars you cannot confirm a pivot until the bar after the pivot is formed closes.

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