Short Term Trading Strategies Using Market Depth - Page 2

Gregory McLeod · #16 (**permalink**) 04-08-2009, 10:56 AM

Market Depth signalled Short term Resistance on the EUR/JPY with 19.0M offered and only 10.0M bid. This conditioned lasted throughout the move. This gave me confidence that my CCI high low strategy would work out. Price broke beneath the low marked by the 50 CCI going below zero. I had and entry order ready to sell 2M of EUR/JPY @132.78 that was filled:

Gregory McLeod · #17 (**permalink**) 04-09-2009, 06:54 AM

Market Depth Imbalance Trading Opportunities on Euro pairs and Swissy late yesterday morning. Market depth showed an imbalance of 12.0 Million EUR/USD Offered while only 5.0 Million were BID. This clearly illustrates the existence of short-term resistance and was a great short trade. Again Market Depth clearly showed EUR/JPY with an imbalance of 16 Million offered while only 6.3 Million were Bid. This clearly shows that sellers outnumbered buyers by a margin greater than 2:1. Numbers like this would but the odds in our favor if we placed a short trade. Finally, the Market Depth showed the Swissy with an imbalance of 8M offered but 13 Million were BID. I went long USD/CHF for 20 pips in a little over 20 minutes with the help of Market Depth. I couldn't resist the EUR/JPY setup as well. If you short-term trading without Active Trader ESN-like Market Depth, you are missing out on trades like these.

mHamond · #18 (**permalink**) 04-09-2009, 01:00 PM

Cleaning up ! How many of these opportunities are you seeing a day ??

4xis2ez · #19 (**permalink**) 04-12-2009, 08:59 AM

Quote:

Originally Posted by Gregory McLeod

Market Depth Imbalance Trading Opportunities on Euro pairs and Swissy late yesterday morning. Market depth showed an imbalance of 12.0 Million EUR/USD Offered while only 5.0 Million were BID. This clearly illustrates the existence of short-term resistance and was a great short trade. Again Market Depth clearly showed EUR/JPY with an imbalance of 16 Million offered while only 6.3 Million were Bid. This clearly shows that sellers outnumbered buyers by a margin greater than 2:1. Numbers like this would but the odds in our favor if we placed a short trade. Finally, the Market Depth showed the Swissy with an imbalance of 8M offered but 13 Million were BID. I went long USD/CHF for 20 pips in a little over 20 minutes with the help of Market Depth. I couldn't resist the EUR/JPY setup as well. If you short-term trading without Active Trader ESN-like Market Depth, you are missing out on trades like these.

How often do these imbalances occur for one currency pair? Every few minutes? or hours? Also, in a previous post, I noticed the Active Trader account had a balance of less than $4000.00 (account 77058). Is this a demo? I thought $25k minimum was necessary. Thanks for your showing this platform.

Gregory McLeod · #20 (**permalink**) 04-13-2009, 09:38 AM

Yes. These accounts displayed are demos. The minimum is either $25,000 deposit OR trade more than 10M per month in notional volume. Click HERE to find out more

It is not uncommon to see 5 or 6 imbalances during the late London/ early North American Session in which I trade. I am sure there are more during Asia and the late US session as well

Gregory McLeod · #21 (**permalink**) 04-13-2009, 10:06 AM

Market Depth Imbalance favors a short term EUR/USD Long for 5- 10 pips.

Gregory McLeod · #22 (**permalink**) 04-13-2009, 10:09 AM

Market Depth trade made 7 pips in 6 minutes. Initial 2:1 Imbalance held steady and provided a great trading opportunity.

Gregory McLeod · #23 (**permalink**) 04-15-2009, 07:02 AM

Market Depth is currently showing an imbalance favoring a short-term long for EUR/JPY. With volume on the BID nearly 2:1 versus that Offered, upward price momentum may be in the cards.

Gregory McLeod · #24 (**permalink**) 04-15-2009, 07:46 AM

EUR/JPY Market Depth Trade yielded 30 pips. The pair broke out at around 6:30 am Eastern time some 40 pips before pulling back.

Gregory McLeod · #25 (**permalink**) 04-15-2009, 07:55 AM

Though I have been entering Market Depth trades without the use of charts. I pulled up a 100-tick chart to illustrate the price action as Market Depth displayed this imbalance in the book. The green lines represent the time period that the imbalance favoring bids happened. Market Depth indicated that there were more BUYERS than SELLERS which served as a short-term floor and eventual launching pad to higher prices. This is much different than sideways price action due to market indecision and low liquidity. Without Market Depth, there is no way to tell the difference. Market Depth shows underlying real-time buying pressure.

Gregory McLeod · #26 (**permalink**) 04-22-2009, 11:43 AM

Using Market Depth, 14 pips were scalped on GBPCHF. The imbalance was 9.8M BID but 13.3 was offered. This condition remained for several minutes as price gyrated and then moved down. As the balance came back, I closed the trade. See the attached chart:

Gregory McLeod · #27 (**permalink**) 04-23-2009, 09:26 AM

15.5 pips picked up using Market Depth only. AUD/JPY showed an imbalance favoring a short position 11.4M Bid but 18.4M Offered.

My limit was hit in a matter of 8 minutes. Market Depth seems to provide a few of these opportunities around the opening and during the New York trading session.

Again this trade was not done with the use of the chart. Market Depth Imbalance was a powerful edge that allowed me to see were the banks were positioned. Armed with that information, I was able to execute a successful trade.

Gregory McLeod · #28 (**permalink**) 04-23-2009, 09:29 AM

15.5 pips picked up using Market Depth only.

Gregory McLeod · #29 (**permalink**) 04-27-2009, 10:28 AM

According to Market Depth, Banks are heavy on the Offer on the AUD/JPY by a margin of nearly 3:1.

Gregory McLeod · #30 (**permalink**) 04-27-2009, 10:31 AM

Market Depth helped me scalp 5 pips from the AUD/JPY. Took a little longer than expected this time but a win is a win.