Training Videos for the Market Depth Indicator
NINJATRADER 8 TRADE
We take a look at a persistent trend in the evening session on February 19, 2019 in NinjaTrader 8. After the offers lead the bids for an hour, price surged to the upside. We give a detailed analysis on how this trade could have been taken and potential exit strategies.
TRADESTATION 9.5 TRADE
We look at the same trade in Tradestation 9.5 on February 19, 2019. The formatting for the indicator between the two platforms is different but can be easily adjusting when you format the indicator settings. We also discuss “order book bust” in this as can be seen at the end of a trade.
Looking at the order book is more of an “insiders view” as it shows the market participants intentions. Many HFT’s use order book information to take trades and in this market environment, there is no greater insider than HFT’s. I want to be looking at the same information that the HFT’s are looking at.
On February 5, we use the Market Depth Indicator along with the Advance Decline line to detect a possible short signal in the stock index futures. We go over the live trade in stages, 45 minutes into the open and 2 hours later as we disect this short trade. Post video observations are related to the State of the Union address tonight being a potential catalyst for the “bids to take a break” until after the address and for the market to then move higher, if the President says what the market wants him to say, or to move lower if there are any “surprises” that create uncertainty.