Market Depth
Hi, again – yes its Norbert the German banker!, ok maybe not but I am likely more close to a german banker then he will ever be lol. Today I am going to demonstrate the correct way to read Market Depth, many more brokers are offering access to this tool for the average trader. Market Depth is the likely one of the most important aspects of my daily trading especially for deciding weather or not to enter or exit a trade. What I find so ironic is that very few traders understand how to use it or even what it is. In the videos below I will go over exactly what it is and some of the ways I use it to help me enter and exit trades. These trades are live for real money so you get a true feel for what I am seeing.
As you can see in this video I am trading with the trend on the momentum drop of the AUS/USD. No matter the type of trade you see in this video I am using Market Depth to see how the banks are reacting and moving orders around this fast drop to see if an entry or exit opportunity is needed. I was able to clearly see an exit near the low of that day due mostly to Market Depth.
In this video we see I am using not only Market Depth to help me see how the banks are lining up but also you will see me trade ahead of an expected ALGO buy cycle along with using “HALO” an MT4 system I created. By putting all of these elements together in unison, it gave me a good tactical and strategic positioning on this EUR/USD trade.
In this video, well there are no words you just have to watch it because I said its cool and that is all you need to know! If you put in the screen time and watch Market Depth along with the basic concept of “price follows size” You should be able to improve your entry and exits as well as timing on trades. Using Market Depth for me and understanding that I trade what I see not what I think, gives me an edge over most other traders that I exploit at every turn ;) Hope you like and find the videos useful. ENJOY!!!