Trade Intensity

[metalhead 10]

anyone still using this indicator?

[BlowFish 10]

Not really 'using' it but certainly not 'done' with it either. Have you found any merit in the principle?

[UrmaBlume 10]

We developed this indicator and all of our traders use it every day, in fact we have 2 different versions of it and they use both.

 

The HUGE CAVEAT with this indicator is that it can give the signal of a reversal when it is really a signal of continuation.

 

The good news is that with the proper filters based on order flow and the balance of trade it becomes easy to tell which is which. Without such filters or other corroboration its use can be very problematic.

 

cheers

 

UB

[cunparis 10]

anyone still using this indicator?

 

I have it on my charts for the markets I trade and I do pay attention to it to establish context for my trading. But I'm not watching it and entering trades based off intensity. It's just one piece of the puzzle.

[metalhead 10]

We developed this indicator and all of our traders use it every day, in fact we have 2 different versions of it and they use both.

 

The HUGE CAVEAT with this indicator is that it can give the signal of a reversal when it is really a signal of continuation.

The good news is that with the proper filters based on order flow and the balance of trade it becomes easy to tell which is which. Without such filters or other corroboration its use can be very problematic.

 

cheers

 

UB

 

 

Want to share those, too?

[alex41 10]

Article with a similar theme Flash Crash Analysis - May 6'th 2010 - Intro - Empirical Analysis - Answers - Nanex

[bathrobe 10]

I have purchased your spam newsletter seconds after you pressed submit.

Edited July 4, 2010 by RonW
spam

[LeeRain 10]

That's pretty much what I'm working on - wish I'd started maintaining my own database ages ago.

Edited July 6, 2010 by RonW
spam

[i trade 10]

So far my observation is that the turning point is due more to exhaustion than it is traders fading the move. For a short, I see exhaustion by sellers and then price reverses. This seems to be more reliable than looking for an increase in intensity by longs. But I'm still investigating this.

 

Cunparis I just wanted to expand on the exhaustion by sellers that you mention. First I want to confirm that we are talking about intensity occurring in the midst of a sell off. If this is the case...the important part you didn't mention, and the part that causes the most intensity, is the capitulation caused by the selling of long held inventory. Then as short holders see longs capitulating they start to buy to cover then new longs start buying to initiate. These 3 steps are all part of the process of the market transitioning from a down auction to an up auction and help to point out whether intensity will lead to change in trend or continuation.

[cunparis 10]

Cunparis I just wanted to expand on the exhaustion by sellers that you mention. First I want to confirm that we are talking about intensity occurring in the midst of a sell off. If this is the case...the important part you didn't mention, and the part that causes the most intensity, is the capitulation caused by the selling of long held inventory. Then as short holders see longs capitulating they start to buy to cover then new longs start buying to initiate. These 3 steps are all part of the process of the market transitioning from a down auction to an up auction and help to point out whether intensity will lead to change in trend or continuation.

 

Great explanation. Often I see the trade intensity where longs would logically have their stops. sometimes I see it without any logical place for stops. But what you say makes perfect sense.

 

Here's an example from just a few minutes ago:

 

 

I'm not really sure exactly why we get the exhaustion but when it comes I'm ready to fade it. However I don't trade only this, I need confluence with my other data.

[i trade 10]

Great explanation. Often I see the trade intensity where longs would logically have their stops. sometimes I see it without any logical place for stops. But what you say makes perfect sense.

 

Here's an example from just a few minutes ago:

 

 

I'm not really sure exactly why we get the exhaustion but when it comes I'm ready to fade it. However I don't trade only this, I need confluence with my other data.

 

Thanks! Yes....context is king...everything is relative to both the macro and micro inventory conditions of the market and also to any correlated markets to the one that you are trading.

 

The majority of exhaustion in a down move comes when long holders give it up and cover.

 

Sometimes the level where capitulation occurs might seem illogical because it is based on held inventory levels rather then a specific price level.

[bomberone1 10]

I think that twap is the better indicator in these case.

there are many of them for algotrading.

 

TWAP Fixed Time

TWAP Fixed Slice

Floating Passive

Floating Aggressive

TWAP Randomized

TWAP Randomized Market Participation

 

Do you have someone of them coded in easylanguage?

[bomberone1 10]

No one has coded twap?

[Tams 20]

No one has coded twap?

 

please stop invading every thread and hijacking it with your off topic agenda

 

if you have a request, START A NEW THREAD !!! (it is free)

Edited January 13, 2011 by Tams

[bomberone1 10]

Yes Tam now i built a new topic, hi hope someone help me in find twap.

Regards

 

What does mean hijacking?

[Jleon 10]

The T/S and DOM is a crazy place that is for sure. To be able to see Iceberg and other institutional orders is a big help with any trading method.

 

I have created Software that works with Ninja Trader and plots these orders on a chart in real time. I have been a trader for 11 years and have always looked at the order flow on the DOM and T/S but a lot of orders have become way to fast for the human eye or are hidden in tiny lots. I have examples and screen shots to help explain. This will help anyone that is trying to understand the market by tape reading.

 

Have a great day!

[bomberone1 10]

The T/S and DOM is a crazy place that is for sure. To be able to see Iceberg and other institutional orders is a big help with any trading method.

How could you see Hidden orders?? Now many trading platform give you the ability to hide all your order,

 

I have created Software that works with Ninja Trader and plots these orders on a chart in real time.

DO you have also for multicharts?

 

Could you post any video?

[Jleon 10]

How could you see Hidden orders?? Now many trading platform give you the ability to hide all your order,

 

 

DO you have also for multicharts?

 

Could you post any video?

 

I have spent many years in order flow and have created Algo's to find these orders. If you are familiar with Trading Technologies DOM and how it tallies orders at each price level you can understand the logic.

 

Yes, it does work on multiple charts at the same time.

 

I will upload videos later this week. Have a good one!

[cunparis 10]

I have spent many years in order flow and have created Algo's to find these orders. If you are familiar with Trading Technologies DOM and how it tallies orders at each price level you can understand the logic.

 

Yes, it does work on multiple charts at the same time.

 

I will upload videos later this week. Have a good one!

 

I looked at your website but it wasn't clear what it actually does (even if you wish to keep the algorithms secret). I guess it's finding large disguised orders?

 

If you have more examples, a video showing it work realtime, or a trial, I would be very interested.

[Jleon 10]

I looked at your website but it wasn't clear what it actually does (even if you wish to keep the algorithms secret). I guess it's finding large disguised orders?

 

If you have more examples, a video showing it work realtime, or a trial, I would be very interested.

 

The programmer was updating my site over the weekend. It should be up and running now.

 

Yes, it finds large orders in the market and places them on a chart. I will update you later today with a video. I do not offer a trial and only offer it outright. My goal is not to become a vendor but continue as a trader and help others.

 

Have a great day!

[TheNegotiator 13]

I do not offer a trial and only offer it outright. My goal is not to become a vendor but continue as a trader and help others.

 

So you will be giving this away for free then? If you are selling it, you are a vendor whether or not it is good or bad, cheap or expensive.

[Jleon 10]

So you will be giving this away for free then? If you are selling it, you are a vendor whether or not it is good or bad, cheap or expensive.

 

Correct, but this is not my soul purpose and the reason why im not offering a trial.

 

Thanks

[TheNegotiator 13]

Correct, but this is not my soul purpose and the reason why im not offering a trial.

 

Thanks

 

I'm sorry, I am correct in saying you're giving it away for free or that if you are selling something you are a vendor or both?

[Jleon 10]

I'm sorry, I am correct in saying you're giving it away for free or that if you are selling something you are a vendor or both?

 

Cool. Yep im charging for it. Cost a lot of time and money to put together. If people want it great if not no biggie. Just trying to help out.

 

I am a trader and know this will help others so I am offering it. If I was only a vendor I would offer trials and get caught up in charging fees etc.

[TheNegotiator 13]

Okay that's fine. Full disclosure is what you need to give here. You also need to make sure that you are attempting to use your knowledge to benefit our community and not just to promote your product.