FMIND order flow software for NinjaTrader
FMIND order flow software detects hidden volume available in the order book, but is not visible in market data. If all order flow liquidity were visible, then when a trade executes, we would expect the post-trade quote size to be less than the pre-trade quote size by exactly the size of the trade. FMIND order flow software calculates excess of the post-trade quote size over that expected value and represents hidden liquidity. Statistics show us that almost all of single, large individual orders (institutional block trades) include hidden size, which is about 75% of volume. However, the percentage of hidden order volume, conditional on a hidden size, does not differ significantly across liquidity groups, suggesting that the motivation for hidden order usage might be similar across all financial instruments. The basic, major view of market in FMIND order flow software is to detect footprints of single, large individual market participants.
ORDER FLOW TRADING MINDSET
Very important concept in order flow trading is thinking about what big market participants are doing right now and will might do in future. Then you can anticipate what kind of actions they will be taking in the market.