Market depth tools for S/R line confirmation

Market depth tools for S/R line confirmation

Postby phil_trade » Fri Aug 16, 2013 11:03 am

Hi all

just saw that Bully Pepperstone broker give to his customers a market depth Tools (see picture)

I would know if someone use it, and of course, if it's accurate.

I would like to confirm my automatic S/R line (draw with Slow Fractal), with a strong/weak indication, provide by market depth around the S/R line value. It could be automatic or manually after reading value.

Anyone having experience with this ?

thanks to share

cheers

Philippe
You do not have the required permissions to view the files attached to this post.
phil_trade
 

Re: Market depth tools for S/R line confirmation

Postby mobthehop » Sat Aug 17, 2013 3:45 am

Philippe, I am reasonably sure that the stated LII only reflects orders visible to the liquidity providers of Bully Pepperstone, some story as with volume / tick data provided by Empty4 brokers.

How do you evoke this tool on Bully Pepperstone Empty4? Would like to see w/r also available on other brokers' Empty4 platforms....

Apologies if you provided this info elsewhere - what is a "slow fractal"?

Cheers / Mop
User avatar
mobthehop
 
Posts: 365
Joined: Wed Nov 16, 2011 12:16 am

Re: Market depth tools for S/R line confirmation

Postby phil_trade » Sat Aug 17, 2013 7:20 am

mobthehop wrote:Philippe, I am reasonably sure that the stated LII only reflects orders visible to the liquidity providers of Bully Bully Pepperstone, some story as with volume / tick data provided by Empty4 brokers.

How do you evoke this tool on Bully Bully Pepperstone Empty4? Would like to see w/r also available on other brokers' Empty4 platforms....

Apologies if you provided this info elsewhere - what is a "slow fractal"?

Cheers / Mop


Hi Mop

stated LII only reflects orders visible to the liquidity providers of Bully Bully Pepperstone

yes,I'm aware of that. It's a beginning !.
I'm searching better tool if exist and found http://orderbookfx.com/ but they don't take new customer :o

Anyone know another Global or Multiple Level II providers ?

what is a "slow fractal"?

I'm using S/R indicator from SHF and use Slow Fractal (red one) to trace S/R line. I'm trying to see if with LeveLII Bid/Ask ratio 2:1 near this line, I could improve Support/Resistance concept.

Cheers

Philippe
phil_trade
 

Re: Market depth tools for S/R line confirmation

Postby phil_trade » Sun Aug 18, 2013 7:49 am

Other thought :

it's not bid/ask volume which is important, but RATIO of Bid/Ask Volume. Normal ratio is about 1:1.

If above a resistance line, ratio 2:1 show a lot of SELLER, we can suppose this Resistance Line is strong.

So if we suppose, Bully Pepperstone pool liquidity provider (or another broker who will provide this info -> http://www.tools4brokers.com/products/one-click-trading-and-market-depth-panels) is enough representative of all forex liquidity provider, its ratio could be accurate ?

Your notices are very welcome !

cheers

Philippe
phil_trade
 

Re: Market depth tools for S/R line confirmation

Postby jako » Wed Aug 21, 2013 5:50 am

User avatar
jako
 
Posts: 100
Joined: Wed Jun 20, 2012 6:07 pm
Location: Slovensko

Re: Market depth tools for S/R line confirmation

Postby phil_trade » Wed Aug 21, 2013 8:01 am

jako wrote:http://www.mt4i.com/appstore/app.aspx?id=1&sort=popularity ?


Hi Jako

Thanks for this infos.

did you use it ? with success ?

Always the same question with this type of info in forex : does it reflects a majority information of the market ? What is the part of MTi customers in forex ?

http://www.mt4i.com/connect/connect.aspx#sentiment -> they also have a market depth info but not an automatic ratio !

cheers

Philippe
phil_trade
 

Re: Market depth tools for S/R line confirmation

Postby jako » Wed Aug 21, 2013 8:17 am

I'm just starting to use as a filter. When the number of failed orders above 50%, so I am looking for the opposite input. Answers to your questions of interest to me.
User avatar
jako
 
Posts: 100
Joined: Wed Jun 20, 2012 6:07 pm
Location: Slovensko

Re: Market depth tools for S/R line confirmation

Postby jako » Wed Aug 21, 2013 8:46 am

Overview

MT4i's Trader Sentiment aggregates the open positions of all real-money accounts which are currently publishing their results to MT4i. It is based on the net position of each user. For example, if a trader is running a grid system which currently has 20 orders open on each side, then the figures include one single net figure for that user, not 40 separate positions.

Long vs short, winning vs losing

The Trader Sentiment divides up positions by direction (long vs short), and by whether the open position is currently profitable or not.

On most platforms, including MT4i, it is not unusual for a majority of open positions to be in loss. Taking two extremes of trading style, trend-followers often have more losing trades than winning trades (but make bigger profits on the winners), and scalping systems often close trades quickly once they become profitable, meaning that their typical trade spends most of its lifetime in loss.

Current status

The Trader Sentiment shows the current state of open positions both as a pie chart and as a table. If a majority of the pie chart is green, then most users are long; if mostly red, then most users are short. Please note that figures are only available while the market is open.

History

The Trader Sentiment also shows a minute-by-minute history for the symbol over the last 2 trading hours. Positions can change very rapidly in reaction both to news and price movements. A news event which does not cause a major movement in the symbol's price can nevertheless lead to a big change in the number of people long/short. It is not uncommon for the number of users long/short EURUSD to change by as much as 30 percentage points (e.g. from 35%/65% to 65%/35%) very quickly in reaction to a major news event.

% of traders

The Trader Sentiment also shows what percentage of MT4i accounts have an open position in the symbol. It is rare for this figure to exceed 10% except on EURUSD and GBPUSD. At any point in time, a majority of MT4i users typically do not have an open position in any symbol.

Interpretation

The Trader Sentiment is not a directional indicator. You should not buy or sell based on whether MT4i users are generally long/short.

Instead, the Trader Sentiment can help to give you the following insights into the market:

Divergence between sentiment and price. Many traders and trading systems are basically trend-following. The percentage of people long/short will generally follow price movements. Therefore, it is often significant if there is a major change in sentiment while the price remains relatively static (or even goes in the opposite direction).
Reaction to news events. Particularly on EURUSD and GBPUSD, the percentage of people long/short can change substantially and rapidly in reaction to news without a major change in the price. The move in sentiment will indicate what other traders think about the news announcement, and may suggest future price direction.
Support and resistance levels. It is unusual for there to be more winning long trades than losing long trades for any protracted period of time (or more winning short trades than losing short trades). This often leads to profit-taking, which creates support or resistance around the current price - typically resistance if a majority of long trades are in profit, and support if a majority of short trades are in profit.
For further examples of interpreting the indicator, please see the PDF document which accompanies the Empty4 indicator.
User avatar
jako
 
Posts: 100
Joined: Wed Jun 20, 2012 6:07 pm
Location: Slovensko

Re: Market depth tools for S/R line confirmation

Postby babalu4u » Fri Aug 23, 2013 6:48 am

You can use MarketDepth in cTrader... ;)
You do not have the required permissions to view the files attached to this post.
User avatar
babalu4u
 
Posts: 169
Joined: Fri Apr 13, 2012 6:52 pm
Location: Slovenia - EU

Re: Market depth tools for S/R line confirmation

Postby phil_trade » Thu Sep 05, 2013 5:45 am

babalu4u wrote:You can use MarketDepth in cTrader... ;)


Hi

did you see an automatic option to read total amount of Bid/Ask or ratio ? I have a look yesterday, and it seems to me quite unusable ! How to take profit of this market depth changing at the light speed ?

cheers

Philippe
phil_trade
 

Next

Return to Automated trading systems

Who is online

Users browsing this forum: No registered users and 1 guest

cron