Recognizing Accumulation And Distribution In The Order Flow With Orderflows Trader 7 For NinjaTrader
www.orderflows.com/oft7.html
Accumulation and distribution are important concepts in the analysis of order flow, which refers to the sequence of buy and sell orders that are executed in the market. These concepts provide insights into the underlying market dynamics and can be useful for identifying potential changes in market sentiment and price trends.
Accumulation:
Accumulation refers to the process of institutional investors or large traders gradually acquiring a substantial position in a security or asset over time. This is typically done in a strategic manner to avoid causing significant price movements that could work against their objective of building a position. During the accumulation phase, the order flow is characterized by the following:
1. Increased buying activity: There is a noticeable increase in the number and volume of buy orders relative to sell orders, indicating that buyers are actively entering the market.
2. Absorption of selling pressure: Despite the increased buying activity, the price of the asset remains relatively stable or rises gradually. This suggests that the buying pressure is absorbing the available sell orders, preventing significant price declines.
3. Narrow price range: The asset tends to trade within a relatively narrow price range as the accumulation process unfolds, with periodic pullbacks that are quickly bought up.
4. High-volume buying: Accumulation is often accompanied by higher trading volumes on days when the asset price rises, indicating that large institutional buyers are actively participating in the buying activity.
Distribution:
Distribution is the opposite of accumulation and refers to the process of institutional investors or large traders gradually offloading or selling their positions in a security or asset. During the distribution phase, the order flow is characterized by the following:
1. Increased selling activity: There is a noticeable increase in the number and volume of sell orders relative to buy orders, indicating that sellers are actively entering the market.
2. Absorption of buying pressure: Despite the increased selling activity, the price of the asset remains relatively stable or declines gradually. This suggests that the selling pressure is absorbing the available buy orders, preventing significant price rallies.
3. Narrow price range: The asset tends to trade within a relatively narrow price range as the distribution process unfolds, with periodic rallies that are quickly sold into.
4. High-volume selling: Distribution is often accompanied by higher trading volumes on days when the asset price declines, indicating that large institutional sellers are actively participating in the selling activity.
Analyzing the order flow for signs of accumulation or distribution can provide valuable insights into the underlying market dynamics and potential future price movements. Accumulation patterns may signal the potential for a bullish trend, while distribution patterns may suggest the possibility of a bearish trend. However, it's important to note that order flow analysis should be combined with other technical and fundamental analysis techniques to make informed trading decisions.
Пікірлер: 24
Hello Mike. I have a question regarding "Passive Traders in Control" feature - to calculate this, is the software taking the data from DOM? If not, how software can recognize - is this passive or aggressive?
tell us more about cycles in order flow. thanks!!
How is it that your highest volume on bid and offer side each occurs at the same price level within the candle?
Im about to binge watch your content... this is really good information
@mikeybb001
2 ай бұрын
Church, do you have his software?
Hello mike Thanks for every video you are making to clarify order flow for us. My question is is there other modules to order flow software or just one. Because i can not identify market exhaution and rejection like u did in your previous videos.
@holyearth
2 ай бұрын
It needs to be automated, Mike needs to make a bot that trades stacked imbalances, look at Polarity ATI, as an example, and Mike knows order flow way better than the other guys
@mikeybb001
2 ай бұрын
Agreed he does, hid education is really good, but he never answers emails and provides no support. 😢
Can you make a bot that trades stacked imbalances?? Look at what polarity ATI is doing….and I know you know order flow better than them….
Hi , I’ve seen that your orderflow course is a available,how can I buy the course alone without having to buy all the other software. I just want to buy the course first, also could please provide us with an email or a website where your courses are sold. Best regards
@user-zn3vh1ev2w
2 ай бұрын
Hello
@mikeybb001
2 ай бұрын
Contact me for this NJ
@mikeybb001
2 ай бұрын
Contact me for this NJ.
Awesome. Can you please talk about market structure as well.
@nicolasrodrigo9
Ай бұрын
Market profile?
Your pricing for the tool makes no sense, you're charging $800 for the tool plus education, but why not create separate packages. For instance, just the tool only. I don't see a value add for the $800. What if you have potential people who have used order flow but don't want to spend $800 that comes with the tool and other byproducts, but just want the software.....
@mikeybb001
2 ай бұрын
Felix, there are other options available.
@HX3ne
2 ай бұрын
You could’ve just taken the free education and be greatful
@felixorakwue7833
2 ай бұрын
@@HX3ne The whole point of these videos are to get you to BUY the product. Noting is free.
@ipkiss1162
Ай бұрын
Sounds to me like your broke and shouldn’t be trading anyways 😂
@felixorakwue7833
Ай бұрын
@@ipkiss1162 A business man doesn't broker a deal when he is paying a premium that is out of touch in the market, if YOU spend $800 on this when I got mine for pennies on the dollar then you my friend are the foolish man. Talk about being broke.
If only Mike would respond to emails. I asked a question over a week ago regarding the new tools ...no response. It's like he only sends out emails and any he receives ends up in junk. I can't believe he would just ignore them. It's $$$ at the end of the day. As much as his videos are great, be very careful purchasing his software, you will get no support when you need it.
Hi Mike my name is Chanda and I’ve sent several emails about the weekly live sessions. I’ve never received an email with the information to join the weekly meet up and I purchased the software almost a year ago. Can you please check your email and add me to the distro?