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Q&As: order bookThere are people who trade based in order book exclusively & promote these so called orderflow trading platforms, even these days. Surely, it's a great deed to learn this interesting, exotic & unusual skill, but the thing is it's completely unnecessary. The real use cases for DOM aka LOB aka order book aka Level 2 data are mitigating adverse selection, reducing market impact & spotting potential counter agents. If you think deeper, all these issues are really all about position sizing and nothing else, you can operate as big as it's possible (depending how much diminishing returns you can let go), and the only thing that can help you figure it all out is order book. The one & only principle of orderbook analysis is to understand where's us (operators), and where's them (ones who just need to be filled), be nice with yours & be a nice counter agent for them. It's very simple, clients place big orders that immediately stand out. Everything else is us, we're spreading our orders equally all around the book. For some reason not many think about it, but as a maker it's good to not only provide liquidity aka make the market, but also to consume these huge limit orders if it lets you to offload some risk or to open a position if the prices are good. By doing so you always make the market better, the faster and in more clear fashion the market activity is unwinding - better for all of us. If you look at order book histogram and imagine it turned horizontally, you'll see peaks & valleys. So being inside a loading range (past a level) or nearby risk offloading areas (predetermined exit areas), you spread your limit orders the way they kinda fill these valleys, and you can also use market orders to kinda smooth the sharp peaks in order book. That's how you reduce your market impact.Your impact will start being too high when by filling the valleys you'll be creating new peaks, and by smoothing peaks you'll be creating new valleys. Easy enough? All the wise-ass reinforced learning & stochastic control models will output the same behavior, just a bit worse because they'll never defeat your "feel". They way you can process a feedback loop, as an organic, is DOPE. By monitoring your position in the queue you can decide to replace some limit orders that sit deep to somewhere where probabilities won't be your enemies. If you're not in the first 5% of the queue at these places, your're prone to adverse selection. Closer you are to the front of the level, the worse position in the queue is ok. Negligible but stable adverse selection has a huge negative long term impact, should be taken very srsly. In theory, it makes sense to care about order book as soon as you start trading more than 1 lot or if 1 lot is already a serious size on a given instrument. In practice, when you notice a statistically significant drop in revenue per lot on a given instrument, minding all other factors are equal, it's time to open dem books.
LSE:DOMEducation
by gorx1
Luxury Car Market on a Q4 Bull Run After Punishing 2022The luxury car market is a lucrative and growing industry, with a current market size of approximately $78 billion. It is expected to experience a compound annual growth rate of 5.4% from 2020–2025, driven by factors such as increasing disposable incomes and consumer demand for high-end, exclusive vehicles. However, the current macroeconomic landscape has had a significant impact on the performance of luxury car manufacturers. The COVID-19 pandemic has disrupted global supply chains and caused economic instability, leading to a decrease in consumer spending on luxury goods. This has had a negative effect on the share price of companies such as Rolls-Royce (LSE: RR), Ferrari (NYSE: RACE), and BMW (XETRA: BMW). Rolls-Royce, a British luxury car manufacturer known for its opulent and prestigious vehicles, has seen its share price decline significantly in the past year. The company has been hit hard by the effects of the pandemic, with lockdowns and travel restrictions leading to a decrease in demand for its high-end automobiles. Rolls-Royce has also faced challenges in its supply chain, with disruptions to its manufacturing processes leading to production delays. These factors have contributed to a decline in the company’s share price, which has fallen by around 27% in the past year. Ferrari, an Italian luxury sports car manufacturer, has also seen its share price affected by the current market conditions. The company has faced similar challenges as Rolls-Royce, with disruptions to its supply chain and a decrease in consumer spending on luxury goods due to the pandemic. In addition, Ferrari has faced increased competition from other luxury car manufacturers, which has further impacted its share price. Despite these challenges, the company has been able to maintain a relatively stable share price, with only a modest decline of around 20% in the past year. BMW, a German luxury car manufacturer, has also been impacted by the current market conditions. The company has faced challenges in its supply chain, with disruptions leading to production delays and reduced output. In addition, BMW has seen a decrease in demand for its vehicles due to the economic downturn caused by the pandemic. These factors have contributed to a decline in the company’s share price, which has fallen by around 10% in the past year. Looking ahead to the holiday season, it is difficult to forecast how luxury car manufacturers will be impacted. On the one hand, the holiday season is typically a time of increased consumer spending, which could benefit companies such as Rolls-Royce, Ferrari, and BMW. From the charts, it looks like RR, RACE, and BMW have already begun to witness a Q4 boon, with all three companies’ share prices up nearly 10% after bottoming out YTD at start-Q4 in October. As the current recession deepens and consumer spending slows moving into Q1 2023 these stocks may be in for a reversal, but at the moment shareholders are enjoy a nice Santa Claus rally.
LSE:RR.
by dave_kellr85
4
EZJ awaiting a correction.EasyJet - 30d expiry - We look to Buy at 353.1 (stop at 329.8) A lower correction is expected. Short term RSI is moving lower. A higher correction is expected. Bespoke support is located at 350. We look to buy dips. 338 has been pivotal. The 50 day moving average should provide support at 352. Our profit targets will be 409.8 and 419.8 Resistance: 430 / 448 / 480 Support: 400 / 370 / 350 Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis , as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features. Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
LSE:EZJLong
by Saxo
RR to found buyers at 50% pullback?Rolls Royce (RR.) - 30d expiry- We look to Buy at 79.07 (stop at 75.15) Short term bias has turned positive. Levels close to the 50% pullback level of 79.62 found buyers. Levels below 80.00 continue to attract buyers. We look to buy dips. Daily signals are mildly bullish. Our profit targets will be 88.88 and 90.88 Resistance: 90.00 / 94.80 / 97.00 Support: 84.50 / 82.00 / 78.30 Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis , as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features. Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
LSE:RR.Long
by Saxo
1
BP at overbought extremes.BP. (BP.) - 30d expiry - We look to Sell a break of 454.8 (stop at 467.4) Daily signals for sentiment are at overbought extremes. A higher correction is expected. A break of the recent low at 455 should result in a further move lower. The bias is to break to the downside. Short term momentum is bearish. Current prices have reacted from a low of 455, however, we expect further losses to follow. Our profit targets will be 423.3 and 416.3 Resistance: 470 / 475 / 483 Support: 455 / 445 / 440 Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis , as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features. Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
LSE:BP.Short
by Saxo
Easyjet in Inverted head and shoulders?EasyJet - 30d expiry - We look to Buy at 351.1 (stop at 332.9) A bullish reverse Head and Shoulders is forming. Levels below 350 continue to attract buyers. Bespoke support is located at 345. We look to buy dips. This stock has seen good sales growth. 338 has been pivotal. Our profit targets will be 396.6 and 406.6 Resistance: 375 / 400 / 430 Support: 360 / 345 / 320 Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis , as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features. Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
LSE:EZJLong
by Saxo
2
LLOY being a good buy at IH&S highs?Lloyds Bank - 30d expiry- We look to Buy at 43.71 (stop at 41.98) Broken out of the Head and Shoulders formation to the upside. Previous resistance at 43.70 now becomes support. We look for a temporary move lower. Support is located at 43.70 and should stem dips to this area. Daily signals are mildly bullish. Expect trading to remain mixed and volatile. A break of support at 45.30 should lead to a more aggressive move lower towards 43.70. Our profit targets will be 47.88 and 48.88 Resistance: 47.35 / 48.00 / 49.85 Support: 45.30 / 43.70 / 43.00 Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis , as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features. Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
LSE:LLOYLong
by Saxo
Barclays gains to be capped.Barclays - 30d expiry - We look to Sell at 172.38 (stop at 178.52) 175 continues to hold back the bulls. Broken out of the Head and Shoulders formation to the upside. The primary trend remains bearish. Bespoke resistance is located at 173. Early optimism is likely to lead to gains although extended attempts higher are expected to fail. Resistance could prove difficult to breakdown. Our profit targets will be 157.12 and 152.12 Resistance: 162.50 / 167.00 / 173.00 Support: 155.60 / 150.00 / 145.00 Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis , as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features. Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
LSE:BARCShort
by Saxo
BARC to break from IH&S.Barclays - 30d expiry - We look to Buy a break of 152.62 (stop at 145.44) We are trading at oversold extremes. A bullish reverse Head and Shoulders has formed. Short term bias has turned positive. Prices have reacted from 132.06. A break of the recent high at 152.22 should result in a further move higher. Our outlook is bullish. Our profit targets will be 170.78 and 175.78 Resistance: 151.00 / 160.00 / 170.00 Support: 143.00 / 140.00 / 132.00 Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis , as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features. Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
LSE:BARCLong
by Saxo
LLoyds Bank in inverted and shoulders.Lloyds Bank - 30d expiry - We look to Buy a break of 43.71 (stop at 41.98) Trading has been mixed and volatile. A bullish reverse Head and Shoulders has formed. 43.62 has been pivotal. A break of the recent high at 43.62 should result in a further move higher. The bias is to break to the upside. Our outlook is bullish. Our profit targets will be 47.88 and 49.88 Resistance: 43.60 / 45.00 / 46.50 Support: 42.00 / 40.50 / 38.50 Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis , like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis , as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features. Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
LSE:LLOYLong
by Saxo