Aggressive Buyers Aggressive Sellers Passive Buyers Passive Sellers In The Order Flow
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- čas přidán 5. 09. 2024
- www.orderflows....
In the context of order flow, aggressive traders and passive traders refer to different trading behaviors. Here's the difference between the two:
Aggressive Traders: Aggressive traders are active market participants who seek to execute trades quickly and take advantage of short-term price movements. They actively place market orders or trade at the current market price to ensure immediate execution.
Passive Traders: Passive traders take a more patient approach to trading and are willing to wait for favorable price levels before executing their trades. They use limit orders set away from the current market price and wait for the market to come to their desired price level.
In terms of order flow, aggressive traders remove the liquidity in the market by actively placing market orders. Their trades are typically executed immediately, which can lead to shorter-term price impacts. Passive traders add liquidity to the market by placing limit orders. Their trades are executed only when the market reaches their desired price, which can create support or resistance levels in the order book.
Both aggressive and passive traders play important roles in the market ecosystem, and their trading behaviors can influence the overall price dynamics and market efficiency.
Please note that the concepts of aggressive and passive traders can vary depending on the specific trading context or market structure.
This is one of the Key lessons of orderflow. When the agressive sellers do not reach their goal of pushing the prices further down, it means that they are getting absorbed by the passive buyers. When Morgan Stanley throws a big bid in (or even an iceberg order), then aggressive seller can sell into it and price doesn't move. The sellers are getting absorbed. The Footprint shows large negative Deltas (Sellers) without price movement. Passive Buyers, that bought the sellers, where do they want to go? Up! The question is, who is stronger? Same on the buy side, when aggressive buyers buy the market and price doesn't move, it probably means that they are getting absorbed. What we see in the Footprint is a huge positive Delta without LONG price action.. The passive sellers that absorbed the aggressive buyers, where do they want to go? Absorption is probably in place when we see huge Deltas without price movement or price movement in the opposite direction..
Ok so does the footprint reflect aggressive participants that do not using market orders?
@@JoshTradesFutures the footprint reflects only executed orders, executed by aggressive traders. aggressive traders are basically always market orders. see as well my answers below @beamngcollision6261 & @amorfati4096..
For more confirmation can add oi change to check whether position are getting created or just it is trading volume
@@JoshTradesFutures The footprint chart is showing the executed market orders. This is agressive trading in combination with limit orders.
Limit sell orders are displayed in the footprint on the buy side. Limit buy orders are shown on the sell side, which is best indicated by a high or low.
Between you and Trader Dale, I have all that I need for Volume profile and Order Flow trading! Thank you
Also following trader dale haha
I was just Tryinb to compare who's software to buy this or dales 😮
@billtutun5022 well I'll put it to you like this, I paid for Dale's program because of the Volume Profile tools he has along with the OF software HOWEVER, I learn more detailed tips and tricks about OF from Mike and his videos.
Dale's main trading setups involve volume profile with OF for entry/ exit confirmation. Mike's trading setups are all based on OF which he obviously specializes in.
@@AtlasInternational-ob4qiwhat u think about atlas? I don’t wanna pay such a big bill at once and first wanna try the program out and use it. Atas is exact the same thing as mikes order Flow or even better I think
This is the channel that I needed . Thank you sir !!!❤❤❤
l just deleted all subscriptions from forex trading channel. l m just ok with orderflow
one of the best videos ive seen on this topic, absolute masterclass, ive only recently got into this aspect of trading but i am so excited for this journey, subscribed, keep this content coming sir🔥
I watch your videos on a 27 in monitor and it was hard to see the footprints. It looks a lot better. Thank you.
Sir make video on what is COT ,COT High and COT Low
Do you provided live class online one on one
The font is great! Thank you.
Thanks a lot for the information , I have a question In your software is it possible to open demo account .
Hello Mike. How do you manage contracts rollover ? Based on volume ? What do you think about doing price adjustment on the history ? I wonder how are institutional are managing that. It impacts volume profiles of larger timeframes and gaps may appear or not. Thanks
Wow great lecture
Hey Mike. What's the difference between your OF software and Trader Dale's? Or are they basically the same? Thanks!
So…when max delta turn into white even zero means a turning point to uptrend because the candle made form buy few buyers and still no going down so passive buyers are there …….
Great video. Is this Sierra Charts?
No Ninjatrader
Hi mike pls 🙏🙏 make a video about orderflow trading in forex, crypto.... and what is intraday, scalping, swing trading is ? But mainly make a video about orderflow trading in forex pls thank you❤
What useful information is contained in this that doesn’t exist in a candlestick chart? Using aggressive buyers as an example, if they are winning, price will rise. If they’re getting absorbed, price won’t move. Is it the latter scenario that’s really the informative one?
I noticed your examples are on 1m how does it work on higher TM 15MIN ,1HR ,4HR AND DAILY
7:33 aggressive buyers were like we gonna buy even cheaper let it dip down more. and it created imbalance..
9:56 can we say aggressive buying is being absorbed by passive selling here on minor level.
14:10 aggressive buying moved the poc of bar to upper end, means no matter how higher the price goes they gonna keep buying.
you know tug of war. That's it basically, instead of two parties pulling on a string, there are aggressive buyers and aggressive sellers pulling on a candle, Now the passive buyers and sellers don't pull, they don't apply pulling force, but they can block = absorb. Passive sellers = red limits can absorb aggressive buyers, they can stop the movement upwards. Passive buyers = green limits can absorb aggressive sellers, they can stop the movement downwards. Footprint shows only the traded contracts, e.g. the activity of the two aggressive parties. Passive parties don't move the market, since they are passive. They just sit there and wait to be executed. Passive can only block. As soon as the market moves, one of the aggressive parties is stronger. They buy or sell price by price and so the market moves, like in tug of war. I hope this image helps.. A limit order is always passive, it can be a position build up = entering the market or a take profit = exit the market after a big move. we do not know if it is an entry or an exit.
Yes i have read thesis and research papers on auction theory. and i have seen the speed of tape shows the aggression of participants. @@knutseeger2690
i like your explanation. 😊
Hey Mike, do you have any videos on reversion trades?
In other words candl made up from few aggressive seller in a uptrend (especially at level) price are not going up min delta is zero that may a turning point to down trend…..?
Will this software wore on a mac ?
What platform are you using for these orderflow charts?
Ninjatrader.
If I am a passive buyer,when i get filled,will my profit or stop loss be a passive seller or a aggressive seller? or both?
a stop loss, as well as a Take profit, is always a passive limit order, so with the Stop loss or TP you are a passive market participant. When your trade is LONG (since you bought), your stop loss is a passive sell order below your entry, when your trade is SHORT (you sold SHORT), your stop loss is a passive buy order above your entry. Now the Take profit, this is as well always a passive limit order. When your trade is LONG, your TP is a passive sell order above your entry. When your trade is SHORT, your TP is a passive buy order below your entry. hope this clears..
@knutseeger2690 Yes, but what I'm asking is, say I'm long(maybe limit buy or market buy) and my SL or TP order are triggered, do they become a limit sell order on ASK or do they become a market sell order, that's the poit
Will orderflow work for day /swing trading instead of scalping?
Yes it can. specially for day trading. It's better to look at higher timeframes then and remember : footprint is only showing market orders executed, not the limit orders ( a good reason why its better for scalping and day trading than swing trading ).
Heat map available in go charting
are you still active on trading Mike