Ratio of Market to Limit Orders: Determining Liquidity Instrument by Instrument

Posted November 9, 2017

In Price Action Trading Strategy, Volume Trading Strategy

This is a follow-up video based on questions received from this one: https://paracurve.com/2017/10/6834.html

“Delta” varies instrument by instrument based on the ratio of market to limit orders. This is extremely important to note when flipping in and out markets with higher levels of resting liquidity vs. others. As the relationship changes, so does the price relationship.

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Steve W.

Since 2008, ParaCurve (formerly NBT) has been a provider of a wide range of articles geared towards a common sense approach to trading using fundamental market analysis in conjunction with globally identifiable technical levels. Steve is a 17 year trader, having formerly worked as a sell and buy side global macro analyst for several of the largest financial institutions in the world. You can follow us on Twitter or Facebook. Series and support at FXS Analytics.

Comments

Chris October 4, 2018
Reply

Thank you for the video Steve
You mentioned that Gold was a good instrument to trade with Cumulative Delta, are there any other instruments you recommend that work well with day trading?
Warm regards
Chris

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