As an e-mini climber, I exchange the momentum that is constantly happening as the market moves in a certain direction; it is important to understand whether the market is moving up, down or intermittently. You don’t see or understand this movement when you look at the daily chart, and generally you can’t be an e-mini climber who looks at the hour chart. Needless to say, several market variables are combined to move the market.
There are a lot of conditions when it comes to talking about the e-mini order flow and it seems to me that sometimes the term can scare new traders into seemingly incomprehensible in some legal jargon when deciding to sign a contract. Market Delta is one of those terms and requires about a third level of math to understand. Okay, here we have a complicated Delta calculation:
Volume of Offers- Ask for Volume = Market Delta
Aupa! That was tough! Of course, the volume of supply in the price index will be less than 1 lower price. So you constantly look at these diagrams diagonally up or down a mark, depending on the direction.
When we determine that the Delta Market calculation is a basic calculation, we should determine what to do with that information. Here we are looking at volume, which is the least taught and least understood variable in e-mini trading. In most order charts, which I usually trade with a 6-8 bar setting, the price point where the most volume occurs is somehow highlighted. It is important where these high-volume points inside the bar occur; some occur at the top of the bar, at the bottom of the bar, and many occur in the middle of the bar. With practice, understanding where these significant volumes are located, in the context of the overall direction of the entire chart, can provide valuable information about the direction and strength of most market movements.
It is not uncommon to use an oscillator that is specific to the order flow or a simple trend line to represent supply and demand areas at a specific price in a momentary motion. It is basically a type of point exercise, and can provide a perspective on directional movement; the direction of movement is the bread and butter of the e-mini climber. Looking at the methodology of volume distribution within the bar, most e-mini climbers and unprecedented ability will be provided to accurately predict the direction and strength of a particular movement. You can also easily detect when a price point is reached when the volume of supply or demand is drying up and the market is ready to change directions, sometimes for a relatively short period of time, in review mode and other times
at certain hours, as in the reversal of the direction of the market.
Curiously, most retailers have yet to embrace the latest addition to e-mini trading technology. An institutional trading room is riddled with indicators of a similar type and lacks an average allocation of delayed, outdated and profit delay indicators. I would risk that most traders look at these diagrams and see them as too much work to understand. I must point out that the above assertion is a guest based on my assumption, and not a factually revised factual assertion.
In summary, I have made a brief review of some of the advantages of embracing emerging technologies in the e-mini retail sector and stated that their use cannot be used to their full potential. I also provided a brief explanation of the market structure and a specification of the overall market structure, using demand flow analysis.