When you look at the chart below, you will see the same ols same old plus a whole lot of new stuff to help with both the decision making and the execution.
Nothing has changed about the basis of trades: its either outside in: fade the moves, or, inside out: trade the pullback in the trend.
What has changed since I started this blog in 2009? Well, all the futures pits are gone. No more locals. We're now all electronic locals.There's no middle man or buffer for our trades. Except for the algos. And that's a big "except". The "except" is now somewhere between 70% and 90% of the volume (depending on who you ask).
And why does that matter? It matters because the rhythm of the markets have changed and the way in which orders appear has changed. We have words such as "HFT", "submarine" and "iceberg" that have taken on a whole new meaning.
However, happily, the technology has advanced in leaps and bounds. Seeing order flow has never been easier. And order flow is what we need to see in order to trade successfully.
The workspace below is what I trade off. I've upgraded to 27 inch 4k monitors to give me more room and granularity. NinjaTrader 8 is out. The charts are my same range bars but with a ton of order flow information. I'll tell you more about how I use the information in subsequent posts.
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