Volume drives the price (Behind the Scene)

 

Bar by Bar Volume captured on Gomi Orderflow Bar by using Truedata’s MCX RT Data

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Introduction of Orderflow Bars on Nickel MCX

Anatomy of Orderflow Bars

MCX Nickel Update On 14.06.17

Introduction of Orderflow Bar Vs Candlestick Bar – Elite Support from Authorised NinjaTrader Vendor

Order flow analysis is a visual representation of market price movements constructed by recording the volume traded on the bid and the offer as opposed to just looking solely at price. The value in order flow analysis is in instantly confirming market tops and bottoms when they form, determining where changes in supply and demand have occurred and providing insight into market psychology and market conditions.

Here is an Orderflow chart compared to a traditional candlestick chart:

Normal bar charts only show the open, high, low and close. They don’t show how much traded on the bid and offer. They don’t measure how strong the buyers and sellers were. Orderflows charts tell you that. The key elements of order flow are price, traded bid volume, traded ask volume. When these elements are displayed in an order flow chart, traders who understand order flow will be able to identify the market’s areas of strength and weakness. Every market moves up or down based on the interaction between supply and demand. Traditional charting techniques or analysis do not accurately allow you to analyse, understand and interpret the fighting occurring between supply and demand.

Order flow charts allow you to dissect supply and demand balance in real time as it is happening. You will understand which side is in control and be prepared to respond when it changes. The problem is that a traditional bar chart does not accurately measure nor reflect the emotions of the market
participants. Order flow analysis allows a trader a quick read on changes in supply and demand. By analysing the price movements of the volume traded on the bid and ask, a trader is can confirm a trend continuation or reversal early on and gauge market sentiment by determining how aggressive
the market traded.

In the past it was difficult to read and understand order flow, however advances in technology and the exchanges have made reading and following order flow accessible to anyone who is interested to learn it. The advantage of order flow analysis is that it shows the trader a very clear visual image of what is happening in the market. It provides a deeper insight into the market when compared to other types of charts. The market signals that show up in the order flow are not available in other forms of bar charts. Now you can see and determine for yourself how aggressive the buying or selling in a bar really is.

 

How to understand Volume on MCX Crude Trading by using Gomi Orderflow Tools

gomi orderflow on mcx crude

How to read Onelottrader Orderbook on Indian MCX Market Professional Support by Official NinjaTrader Partner

Below is a quick summary screen of the book and it’s display.

1. The best bids and total quantity bid for at these price levels.
2. The best offers and the total quantity asked for at these price levels.
3. This column records what cumulatively traded at this price level the last time price was trading at this level. Each time trade moves away from the price and then back it will reset to zero and then begin summing each trade.
4. This is a history column for 3. When 3 resets to zero this column will show what was in 3.
5. This is a history column for 4. When 3 moves into 4, 4 moves into 5.
6. This is the total cumulative volume traded at this price level for the day, with a histogram that will show the daily volume profile.
7. This block shows the actual trades taking place, the first time trade moves up to a new price it will turn green and the first time it moves down it will turn red. Any further trades at the same level without price moving away will accumulate onto the total and the block will turn white for each cumulative add.

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