Hartle & Flow

Traders using a depth-of-market view in their DOMTrader or Order Ticket can see the activities of other traders at the inside market and around the inside market on the DOM Ladder. However, the numerical display and the speed with which traders are adding, canceling, and modifying orders in the exchanges order book makes interpreting the activity a challenge. This is why CQG developed the Order Ticker, a display of activity in the order book that’s built upon the classic stock ticker.

The Order Ticker displays new orders, canceled orders, modified orders, and executed trades. I wrote about the basics of the Order Ticker, as well as one Order Ticker setup.

A group of additional settings has been added to the preferences, which enables you to set a range of monitoring order activity and trades. This is a welcome feature because you can set up more than one Order Ticker, as I have discussed before, but now, you can set up bracketed information.

The screen capture shows one such setup using these new settings. I have two Order Tickers in the page for the E-mini S&P 500. . The bottom one is displaying all order changes in the order book equal to or more than 100 contracts, and all executed trades equal to or more than 50 contracts.

The top Order Ticker is displaying all order changes in the order book equal to or greater than 50 up to 100 contracts, and all executed trades equal to or more than 25 up to 50 contracts.

Now, we are seeing a breakdown in the trader activity by one bracket (the top Order Ticker) versus large trader activity. In this example, the market has formed a peak (check the TradeFlow chart and TFCross study) and is about to test support at 1514.00. Considering all of the red orders (dull red backgrounds) appearing in both Order Tickers signifying orders to sell and traders hitting bids (bright red backgrounds), it looks like support may not hold.

The Order Ticker is one more way CQG is providing information from today’s greater market transparency.

This entry was posted Tuesday, June 26th, 2007 at 9:48 am and is filed under TradeFlow, Analytics and Trading with CQG, Monitoring the Markets. You can leave a response, or trackback from your own site.