A Jack of Small Trades

Questions:

What is SCEETO measuring?

Relative change in:

Volatility?
Delta?
Absorption?
Order flow rate of change?
What else?

Answer:

Sceeto, and the order flow algorithms have continue to grow and evolve.

They measures a lot of stuff.

What is important is not so much the measurements, but rather, why and how is the output of these measurements relevant for out trading?

The outputs that I focus most on are:

1) Conclusionary Order Flow - This tells me that traders are trapped.  I am becoming more and more of a stickler for only deploying Sceetos when there is forensic evidence that a material amount of traders are trapped.  Their 'trappiness' provides a push in the price discover process.  We use Tape Meter, Engulfing Sweep, Book Pressure and Sweep to help us determine this.

2) Significant Imbalance Between Supply & Demand - After we see that traders are trapped, we then want evidence that the supply/demand balance is out of whack.   We use Book Pressure and Sweep to help us determine this.

3) The Right Side of the Market, Price Action, Market Structure, and Room to Run - I am going a little out of order here...these items must be all known and checked off on my check-list before I determine that the market conditions are viable to trade.  If I don't have a handle on any one of these items, then I do not have a clear enough market advantage to warrant risking capital by deploying any Sceetos.

I hope that this answers your question....if not, just let me know and I will expand.