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hey everyone it's Mike from order flows
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and welcome to this second video on the
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order flows Delta surge now you know the
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Delta surge is a free indicator that we
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give away on our website order flows
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calm and it works on ninjatrader 8 it
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doesn't work on TLS it doesn't work on
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tradestation I use ninja trader 8 and
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that's why it was programmed for ninja
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trader 8 so it could be downloaded
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simply by going to order flows calm
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slash Delta surge HTML at the bottom of
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the page you will have to enter your
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name and email address to get access to
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the download now before I begin you know
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a brief disclaimer you know please
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understand that trading involves risk
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and only risk Apple should be used for
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trading so you know the Delta search the
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reason I released it you know for free
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is because you know a lot of people say
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hey Mike you know I'm interested in
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trading with the order flow but you know
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I don't know where to start and yeah in
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order flow there's a lot of different
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data points so to speak right Delta you
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got pointed control Delta runs on the
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bottom you have point of control you
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have imbalances and the Delta surge is
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actually one of the ways that when I I
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first started using order flow you know
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way back when was it it helped me
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understand you know when buying or
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selling in terms of you know the
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aggressive buyers or the aggressive
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sellers when they're you know sort of
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waking up and getting stronger and you
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know for for example here right this is
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wheat right I used to trade a lot of
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commodities that's how I end up getting
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my job at JPMorgan is because I was a
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commodity trader I spent you know many
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years at Cargill which is a big
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commodity trading company I spent years
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at ETF man and you know if you've ever
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traded commodities you know things like
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wheat or corn you know beans as beans
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can move pretty good but you know some
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of the other commodities like you know
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palm oil and bean oil and soy meal
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you'll understand what I'm talking about
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on sideways moving markets so for
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example wheats all right we would you
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know wheat is a market it oftentimes
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goes sideways
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it makes them
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go sideways makes a move and what I
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would be looking for in the order flow
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is clues on okay well which way are we
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going to do it we're just gonna keep
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going sideways or we gonna move lower
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we're gonna turn around go higher and I
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would look at the Delta and look for
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clues there so you know if you
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understand what Delta is it's the net
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difference between aggressive buyers and
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aggressive sellers aggressive buyers are
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those that buy at the market aggressive
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sellers are those that sell at the
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market you know when I say at the market
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you know they could be hitting the bid
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they could be sweeping through the book
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basically they're coming in there being
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the aggressor in the market so if the
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Delta is negative right the final Delta
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here you can see the top line Delta
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minus 12 it tells me sellers are in
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control barely it's only minus 12
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there's only 12 more aggressive sellers
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than aggressive buyers the next bars -75
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tells me in this bar there were 75 more
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aggressive sellers than aggressive
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buyers minus 164 tell me there's 164
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more aggressive sellers then aggressive
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buyers so I know over these basically
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these four bars
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it went from aggressive buyers to
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aggressive sellers more aggressive
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sellers more aggressive sellers so I
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would know that aggressive sellers are
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you know over this period here
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aggressive sellers are in control okay
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now how would I use that is you know if
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I would be looking for weak points in
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the market okay in this case for sells
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I'd be looking for a weak points in the
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market if it was a delta surge by I'd be
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looking for signs of strength and you
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can see here right right here at the low
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so I'll be looking for you know more
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selling coming in you know at these lows
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and so I can imagine right the initial
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low here is what five forty one and
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three-quarters market keeps going and
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selling off selling off selling off five
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forty one and three quarters you see
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here's another Delta surge coming in
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another Delta surge coming in all the
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way down to the lows of the day down
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here at 5:29 so this market dropped you
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know from up here what it was trading
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you know 541 and a half
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down to five down you know down to new
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lows on the close of the day all right
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so is it nice 10-cent drop in wheat now
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again you know what was the for me what
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was the early sign that this market was
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gonna sell off was the Delta surge the
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aggressive selling coming in pausing
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more aggressive selling coming in
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pausing alright then I know that there's
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more aggressive selling going on than
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aggressive buying so you know for at the
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lows the day aggressive selling coming
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in it's got a it's got more opportunity
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to go lower
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unless there's obviously gonna be signs
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of aggressive mind coming in now it's a
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little bit different when you're looking
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at markets that aren't necessarily
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driven by supply and demand the way
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commodity markets are right the
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commodity markets you know are really
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more tied down to supply and demand then
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say equity markets okay so like for
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example the e-mini x' you know there's a
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lot of speculative money going on in
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there there's a lot of money that goes
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into those markets that never see
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commodities and you know there's I don't
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say it's it's not based on supply and
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demand but it's it's more based on
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return on the money right then then
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necessarily trading in supply and demand
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yeah you're not gonna eat your stock
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certificates but you know things like
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wheat go to delivery physical delivery
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you know we're the ultimately producers
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make food out of it so you know there's
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sort of a different dynamic that goes on
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with things like equities as as opposed
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to commodities now you know I sent the
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email out yesterday and you know people
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are saying I made a mistake I
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accidentally put the gold chart in there
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twice I supposed to do a emini chart and
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a gold chart but for some reason I
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accidentally copy pasted posted both the
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gold chart as both of them but anyway I
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did get a lot of questions about how
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does it look on the micro charts right
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the micro minis or the micro Nasdaq so
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let's just take a look okay I'm just
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gonna this is the Delta search on the
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micro emini the mes contract okay I'm
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just gonna go back this is what day is
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this here this is xx which is what
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Monday night this Monday night or Sunday
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night let me just see
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well yeah starting on the 20th okay so
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at 5:00 p.m. so you can see there's some
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nice little cells coming in here okay
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nice little cells now again the Delta
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surge is not a tool that's supposed to
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pick every single mark a turning point
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based on the order flow it's looking for
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expansion either to the strong side or
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to the weak side whether it's aggressive
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buyers or aggressive sellers coming into
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the market and you know you can see here
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right this is just in the evening
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session all right here's a nice little
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cell here's a nice little cell here this
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one you know I sort of came back before
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it dropped off this one it dropped off
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and then you know stopped Jonathan
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here's a nice little cell here there's a
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nice little cell here a nice little cell
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here okay so just go back you know this
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is on now the 21st in the morning early
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morning going into the main session here
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you know there was nothing during this
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period okay fine but then you get the
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bye you got the cell there you got a
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late bye
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here's a cell did come up a bit and then
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you got a nice bye here this body didn't
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work out there was a nice cell up here
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now you know the difference with trading
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commodities and trading markets you know
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like equity markets for me is I'm not
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you know how to put it I'm not afraid to
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sell new highs or new lows in
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commodities because I know that
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underlying what's that force underlying
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is really supply and demand I'm a little
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bit hesitant to buy new highs or sell
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new lows in equities just because it
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sort of the market makeup is a bit
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different so honestly I would prefer to
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be taking cells up near heís not buys
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near highs I'd be for preferred
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take byes sort of near swing lows in the
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equities that's that's me
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that's how I trade in regards to
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equities you know there's uh again these
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are coming in near the low of the day
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again you know it's up to you there's
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still capacity for the market to go
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lower but how much lower can it go
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alright I prefer to take a signal like
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this you know coming off a swing high
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but this is the mes you know again if
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you could short this going into the lows
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but I think the better trade is to get
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long coming up off the lows just like
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here the I think this is a better trait
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to take then you know like this or this
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you know after you just had a nice rally
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but you know to each their own
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so let's take a look at Nasdaq you know
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not everybody's gonna trade the way I
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trade and I'm not gonna trade the way
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you trade you know it's about finding
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your own trading style that resonates
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with you
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okay you should nice little cells here
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this was on the 20th coin it's a 21st
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again I don't want to go into all these
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things that you want to show you you
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know how it performs on these different
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micro contracts because you get a lot of
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people asking how does it look on the
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micro contracts now again you know the
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settings you can change the settings
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I'll just talk about that really quick
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in a minute so that's that okay so you
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can see here right the settings the ones
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are you really going to be concerned
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with is this bar minimum bar D Delta
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difference bar C minimum Delta
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differences default is set to 25 and 25
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you could change it say it's in
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percentage I have to really
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open this up so you can see here see in
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percent so you know you could even use
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you know no you know 1% okay say you
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want just an incremental change sort of
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the the smallest change that you can get
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you set it to one not that it's going to
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make that big a difference but you know
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if you set it to say one it's by gonna
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give you a few more signals the I prefer
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twenty five and fifty that's me but
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again you got to decide on what the
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increase in Delta that you want to be
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you see it's it's not giving that many
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more signals but it's giving a few more
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signals you know and again you know with
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more signals you gotta realize there's
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gonna be more trades you know some
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people like to have a lot of trades so I
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suggest you set it to the minimum so you
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know again yeah anyway it's a free
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indicator go to order flows calm / Delta
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surge that HTML you don't have to send
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me your machine ID nothing you just you
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just install it as you would any other
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ninja script add-on and you know just
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make sure you got tick replay enabled
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and you know go from there
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right and just make sure you know if if
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you pull up a chart okay for example all
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you know some people scale their charge
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differently you know if your chart is
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you know a very big chart like this
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right and you don't see anything you
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know scroll to the left look look in the
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past I see yeah I just have it scrunched
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up so you can see things a lot clearer
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but you see you got some nice little
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moves here and here you know again some
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nice moves and this is in the you know
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if you trade around the clock you can
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see there's opportunities in the evening
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session as well as well as the day
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session so anyway guys I'll end it there
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again go to the website you can see here
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this is the URL order flows calm slash
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the Delta surge it downloaded it before
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please switch to the new version
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which is this one this is version 3.0
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0.0 0.2 I believe but anyway I've
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updated the website last week so if
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you've downloaded it in the last week
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you have the correct version if you
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download it in last year
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please read please go back and get the
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new version so thanks everyone have a
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great day
