2/11/2018

depth of market liquidity disappeared..

last week the indexes went into extreme volatility and i did not trade much and if so, it was kind of a testing mode..

this environment is dangerous for order flow trading because the limit side is really shaky.

when you see dom liquidity like this, you immediately have to know there is something wrong with the market.

depth of market - sierra chart

this is something people who don´t see the market depth never realize - the change of the quoting limits.

trading in this environment is extremely dangerous, the laws that normally works and that i use for trading, does not work in this environment.

it is basically caused by market makers who are no longer interested in opening trades and thus, the short-term price action is much more unpredictable

1 comment:

  1. Absolutely dangerous - someone could come in with 50 or 100 lots and drive the price up or down instantly for a wide range...

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