Identifying Algorithmic Patterns Intraday

[suby 10]

I was wondering if anyone here can snipe algorithmic patterns in the markets either from a discretionary standpoint or from a mechanical one (i.e. through data mining and other techniques...)

 

I would love to hear from anyone who has any experience or opinion with this!

 

Suby

[Predictor 11]

Most of the patterns in the market are caused by algorithms. There is a pattern that tends to mark the high and low of day that can be observed in our software. The pattern sets up as follows (for highs):

 

1. A large imbalance occurs in the book (offer) at high

2. A surge in buying either takes out that imbalance or eats into it. Typically this is 1 or 2 points above a recent obvious high.

3. A replenishing offer creates an area of high volume in the chart which is predominately buying

4. A surge in market selling occurs that is far beyond the normal for the day.

5. HOD is usually in. A HOD in my book doesn't mean HOD for all day but at least for several hours and often for the day.

 

I read this pattern many times using my specialized tape reading software. There are other patterns too -- such as large pulls after selling and a market jumping higher. I don't think it is possible to exploit an individual algorithm but understanding the aggregate is very key. There are always people behind the algorithms. There are also liquidity type patterns that can be found around market opening and closing events.

---

Curtis

http://orderflowdashpro.com

 

I was wondering if anyone here can snipe algorithmic patterns in the markets either from a discretionary standpoint or from a mechanical one (i.e. through data mining and other techniques...)

 

I would love to hear from anyone who has any experience or opinion with this!

 

Suby

Edited February 6, 2013 by Predictor

[ab456 10]

You may want to checkout the live commentary done by Lawrence Chan of Neoticker on this site - Daytradingbias.com

[suby 10]

You may want to checkout the live commentary done by Lawrence Chan of Neoticker on this site - Daytradingbias.com

 

Thanks for this, i'll take a look at his blog!

 

is he pretty on point?