Order Flow Getting Started Tutorial

Order Flow Getting Started Tutorial (1)

Glossary

The following is a summary of the common nouns that will appear in the book. Readers don’t have to worry about the meaning of these nouns now. This part acts as a dictionary. When you have doubts about a certain definition during the reading process, you can return to this part for query .

Jump: the smallest fluctuation unit, usually the smallest fluctuation unit that has risen several times is said to be several jumps, for example, each jump of China stock index futures is 0.2 yuan; each jump of thread is 1 yuan; each jump of China Ping An is 0.01 yuan.

Tick: The data generated by each update of the real information of the exchange, the domestic stock market is the snapshot data, and the level1 data usually changes every 3 seconds.

Active buyer: The active buy order at a certain price is much larger than the active sell order, which means that there are many active buyers entering the market at this price.

Active seller: The active selling order at a certain price is much larger than the active buying order, which means that there are many active selling orders entering the market at this price.

Passive buyer: A trader who entrusts a limit buy order and waits for the active seller to appear and make a deal with him

Passive seller: A trader who entrusts a limit sell order and waits for an active buyer to appear and make a deal with him.

Ratio of main buying at the top (full name ratio of main buying volume at the top end): the quantity of main buying orders at the top sub-low price/quantity of main buying orders at the top price The number of sell orders/the number of main sell orders at the bottom price depends on the size of the ratio, and it is necessary to focus on two extreme situations

Single/small prints: The active buy order at the top price of a K-line is obviously smaller than the active buy order at the lower price, or the active sell order at the bottom price is obviously smaller than the active sell order at the higher price, the small prints at the top and bottom Transaction, the experience ratio is greater than 28. Large prints: The active buy order at the top price of a K-line is obviously greater than the active buy order at the lower price, or the active sell order at the bottom price is obviously greater than the active buy order at the higher price. Sell orders, a large number of transactions at the top and bottom, the experience ratio is less than 0.699 Demand imbalance (excess): According to the auction theory, the diagonal price comparison, the number of active buy orders at a certain price is much greater than the number of active sell orders at a lower price, indicating the strength of the bulls Strong, the ratio in this book is usually set to 3:1

Supply imbalance (excess): According to the auction theory, comparing diagonal prices, the number of active selling orders at a certain price is much greater than the number of active buying orders at a higher price, indicating that the short power is strong. The ratio in this book is usually set to 3:1.

Accumulation imbalance phenomenon: It means that there is a continuous demand imbalance or supply imbalance phenomenon in a certain price range, which can better reflect the crushing advantage of a certain force in this range. In this book, it is determined that three consecutive price imbalances constitute a accumulation imbalance phenomenon , usually seen as forming a resistance band or a support band

Quilt trader. The volume of active buy orders at the top price is significantly enlarged, indicating that there are a large number of traders who buy at the end of the upward trend, that is, trapped long traders. The volume of active selling orders at the bottom price is significantly enlarged, indicating that there are a large number of traders who bought at the end of the downward trend, that is, covered short traders. The price moves in the direction opposite to the expectations of the covered traders, making them in a very passive position.

Delta: According to the principle of diagonal comparison, the Delta of a certain price inside the K-line is defined as the volume of active buying orders - the volume of active selling orders. Delta in a K-line refers to the total amount of active buy orders minus the total amount of active sell orders

Absorption: The price is originally in a trend. When a large number of passive traders absorb the orders of active traders who push the trend to run at a certain price, the trend stops as the Delta value of the K line fluctuates around zero, and the trading volume increases. The trend stops and oscillates in a certain price range

Active attack: the price breaks through the range first under the leadership of a certain party during the range movement

POC: The price with the largest sum of buying and selling volumes among all prices inside the K line

The appearance of covered traders emphasizes that there are a large number of traders buying at the end of the trend at the top or bottom, and then the price moves in the opposite direction, making the investors who joined the trend at the end very passive, panicking and abandoning their positions, large orders and micro orders emphasize The most important thing is the relative relationship between the volume of the first level and the second level at the top or bottom: demand imbalance and supply imbalance emphasize the relative relationship between the volume of active buying orders and the volume of active selling orders at a certain price. These concepts do not conflict with each other and can appear at the same time at a certain time. If 2~3 trading signals appear at a certain price at the same time, this is undoubtedly more convincing.