This is a very interesting blog post from Carl Weiss from Algofutures.
I am very happy to discuss this matters with him. The basic idea is that the efficacity of the order flow analysis is very different within different markets.
I am quite shure that daytraders can integrate this information in their trading.
My work would be to think about how the pockets of predictability analysis could be related with the order flow analysis.
By now my idea is that when we have a large Hyrst exponent the order flow in futures markets can be used as instrument for directionnal bias.
Comments
it is indeed interesting about his thoughts. by the way i wonder if anyone tried/trial this product www.orderbookfx.com, who claimed to be able to show a true representation of orderflow for spot fx.
best regards.
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