Discussion of article "Developing a trading Expert Advisor from scratch (Part 12): Times and Trade (I)"
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New article Developing a trading Expert Advisor from scratch (Part 12): Times and Trade (I) has been published:
Today we will create Times & Trade with fast interpretation to read the order flow. It is the first part in which we will build the system. In the next article, we will complete the system with the missing information. To implement this new functionality, we will need to add several new things to the code of our Expert Advisor.
Tape Reading is a trading method used by some traders at various stages of trading. This method is very effective and, when used correctly, it provides a stable profit growth in a safer and more consistent way than when using the well-known Price Action, which is pure candlestick observation. However, the use of Tape Reading in its currently presented form is a very complex and tedious process which requires constant concentration of attention. Over time, we inevitably begin to make mistakes in observation.
The problem in tape reading is related to the amount of information which we have to analyze. Let's look at a typical use case for Tape Reading:
The real problem is that during the analysis we have to look at the price and at what happened to it, but checking these values in mini-contracts is not very practical. Therefore, we usually do not look at the content of the flow in mini-contracts, instead we prefer to observe full contracts, since they are the ones that move the market. This is what actually happens, so the system looks like the one below. It is somewhat easier to interpret and to follow.
Author: Daniel Jose