I can talk order flow all day. I wanted to share this morning’s trade. The market breaches its initial balance (range set during first hour of trade) 95.74% of the time (source: a recent study I conducted over 7 years of raw IQFeed data). This is one of the stats I work to take advantage of every day. Guessing which side breaks and getting on board is the tricky part. That is where order flow comes in. Today I had a few tools to work with, including a big iceberg on the exchange.
The financial times does a decent job defining an iceberg order, so I won’t do extra work:
An iceberg order is a type of order placed on a public exchange. The total amount of the order is divided into a visible portion, which is reported to other market participants, and a hidden portion, which is not. When the visible part of the order is fulfilled, a new part of the hidden portion of the same size becomes visible.
And since it’s public knowledge, I also had an Exodus hybrid oversold, which tipped Switchboard to long bias.
Anyhow, my software reveals these iceberg orders. This one was sitting right at 4683 and was 4 price levels deep, check it out:
This order flow stuff used to be impossible to visually share because it just happened inside the DOM. Now that I can show with you guys what I am looking at, I will from time-to-time, because I love my auction theory order flow nerds.
Despite my overarching Titanic theme today, I will not post that Celine Dion song:
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interesting, and thanks for not posting that song.
Damn, i love that song.