horace

Trading the ES I find that I wind up with a lot of small trades and only two or three decent trades most days. The signals for the decent trades quite often are weak and some of the small trades have strong signals. Do you Guys find the same thing and how do you filter out the potentially small trades

Can you explain this method in a little more detail, as it is hard to follow your reasoning. Thanks

wow, you did well to enter at 9.25, how did you manage that. What did your low print as around 11:02

A very interesting read from you Colonel B, but what if a good Mentor is nowhere to be found. What do you suggest then to a learner trader. How is he/she going to develop a tradeable system for making money.

I would like it increase my knowledge of VPS, Cloud Servers etc as I don't know much about them, but I have heard that they can be useful for trading. Thanks for any help

Steve, Where do we find your blog regards Horace

You are a clever guy Steve.

thanks add I am referring to ES Does your statement concerning removal of liquidity still apply

Thanks guys. I have followed this conversation today plus a couple of other threads and I am with you BHS, my head hurts. On a brighter note it convinces me that price only trading suits me better since we are looking at locked in events in the sense that the price has printed and that is the end of the matter. How we string the prints together is our challenge. Over the years I have visited and revisited the DOM and each time I come away thinking that this is a job for specialists.

ZDO Can you describe the tests you ran and the results you found as they would be helpful to me. thanks

I like this thread because it is driven by people who have an understanding of ask-bid and as a result I know more about the subject than I did yesterday and I thank you for that. I have a little understanding of ES intraday but no understanding of say stocks Fx etc so can I ask that we keep this in mind when making posts. My life at the moment is simple and I don't want to ruin this, but I am always open to ways of fine tuning and ask-bid may fall into this category. Here is what I do and it is simple. When ES is rising on the TF greater than my trading frame, I wait for a pullback and then enter on rising momentum when the price breaks out of the pullback/congestion. Also, I dredge up the supply /demand zones and these add weight to the pullbacks as price enters these zones. Given that a lot of traders are doing the same thing, I wonder if better knowledge of ask-bid on my part would give me an edge or just give me a headache. There is an intuitive component to this simple form of trading, in that the more you practice it, the more you can smell trouble (or lack of it) That is why I started this thread because there are a bunch of you guys out there who are miles ahead of me in your knowledge of ask-bid and the DOM and you seem happy to share it. BHS is there an algo available for what you are suggesting that reads dtn IQ data thanks

Thanks Cruiser, I understand the difference between market orders and limit orders, but can you expand more on the value (if any) of using the ask-bid ratio in day trading. If you believe that the ratio has value, could you explain it please.

Excellent responses Colonel B and BHS. Can you enlarge on the subject please especially if I am to look at the DOM For example if price is stalling at a previous resistance line and has dropped a couple of ticks but the ask/bid ratio is 60/40 then what am I to gather from this and what should I be looking for on the DOM. In the above example, I normally consider that the price has run out of steam and may turn and so I am waiting for the ask/bid ratio to drop under 50 along with the softening price. But is there something more that I should be doing?

Traditional reasoning states price rises when buyers hit the Ask and prices fall when sellers hit the bid. So how does price rise when the sellers at bid outweigh the buyers on the ask The reverse also applies Some of you market delta guys must know the answer. I think it is referred to as reverse delta

much appreciated Steve