Live Q & A Topic – Order Flow and Volume Deltas

 

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[iconbox title=”Unable to attend live?” icon=”x-office-presentation-template.png”]Not to worry, the session was recorded. Members can watch it now.[/iconbox]

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Let’s talk about that great mystery known as order flow. What it is, what it’s not, what it can mean and when to ignore it.

Topic: Order Flow and Volume Deltas
When: June 7, 2012 – 2-3PM PDT

This is a free event for Rancho Dinero members, and y’all can register here. If you’re not yet a member, you can become one in just a couple of clicks.

2 replies
  1. cazimi
    cazimi says:

    Hello,
    I got here because of an email that just arrived. I was actually about sending you another email about:
    http://www.ranchodinero.com/market-studies/tick-by-tick-volume-analysis/
    -Very interesting.
    Since comments seem to be closed there:
    I had a question:
    About those big lots: I suppose you can tell whether they were a sell or a buy?
    If those big lots were *by design* to through you off: would not they mostly end up as losers? Is there a way for you to tell?
    Just wondering.
    Claudio

    Reply
    • El Duque
      El Duque says:

      All transactions are both a buy and a sell regardless of size because there was both a buyer and a seller involved. And there would be no way to tell whether whoever bought and/or sold made money on any given position.

      But I think you’re missing the main point there at the end, which is to challenge your assumptions (if you have them) that big lots mean a big move is beginning or ending. The fact is that there is just plain no way to tell what they mean. And the players who can move a market/trade in big size know you don’t know, and they could potentially use this lack of information to their advantage given the conventional wisdom.

      There’s a whole lot about any given transaction you can’t know: anything about the buyer or the seller; how long they have been in the position; what portion of that position is represented by a big trade; how much more the buyer and/or seller intends to buy or sell; how long the buyer and/or seller intends to hold this position; at what price they might abandon the position; or, whether the position was a winner or loser. There’s more, but (hopefully) you get the point.

      So again, given this lack of critical information, why would anyone assume big lots mean anything at all? Thus, you’re much better off looking at pace and total volume for a given period and not individual transactions. Some of this will be covered in the webinar…

      Reply

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