Trading with Power Trades Scanner (ES, NQ)

The main goal of this thread is to show what Power Trades is and how it works in different markets. We will show some patterns on the ES and NQ futures, as well as discuss possible improvements to this functionality.

https://www.quantower.com official website of our trading platform

What the Power Trades?

Ok, first we will consider what the Power Trades is and how it finds zones.

Power Trades shows the zones with the execution of a large number of orders in a very short time, which will affect the price change with a high probability.
We have an article in our blog about power trades https://www.quantower.com/blog/power...ng-huge-trades
you can read it, but be careful !!! )) there is a lot of complicated terms)

Here are a few examples of how it looks like




How it finds zones?

There is a continuous process of placing, changing and executing orders in the market. All this affects the price change and the expectations of traders regarding the future price.

When a large order appears at a certain level, the price is more likely to come to this order and it will be executed because the market is always looking for levels with liquidity. This already applies to the order flow and the mechanics of orders matching, so we will omit the principles on which the orders are matched.

It is only important to understand that "abnormal events" occur in the market at certain times. Execution of a significant volume of orders in a very short time is one of such events.

The Power Trades Scanner has several important settings that directly affect the results:

Total Volume — the minimum value of the volume that should be traded during the specified time interval

Time Interval, sec — the time over which the Total Volume should be traded

Basis Volume Interval, sec — this parameter shows how much % took the traded volume in the total volume for the specified time.

Zone Height, ticks — this parameter will show only those zones where the height is less than or equal to the specified value (in ticks).

Level2 level count — the number of levels that are involved in the calculation of Imbalance and the Level 2 Ratio column in the table of results.

Filter by Delta,% — the parameter will show zones that have a delta value greater than or equal to that specified in the setting. The value must be specified by the module, so the table will show both positive and negative delta values. We recommend paying attention to the zones with the delta above 50% (taking into account the specifics of each trading instrument).

For example, let's set the Total Volume of 2000 contracts and Time Interval in 3 seconds on the E-mini SP500 futures. This means that the scan will be based on the available history and will show on the chart only those zones that have such a volume for the specified time.



Additionally, it is worth to set a delta value to filter out the zones with one-side trades. The more delta value, the high probability that the price will reverse.



So, as a starting point about this scanner, I think this information will be enough
Subscribe to this thread, ask questions, then we will analyze the patterns that we have already found and use in our live trading

Ok. Here is fresh trade.

On the first screenshot, we have POC of yesterday's closing session



On the second screenshot, you can see that the price tested the POC and went down. There was a price skid up to 2953, and in real time we saw in our Order Flow panel that the price would reach there. Because at this level, there was a very large limit order that was executed



The last screenshot shows the price target. The line indicates the zone on the left that has not been tested before.

Today we have a huge volume on Europian session (2700 contract per 3 sec). Enormous basis ratio (64%) means that the value of this traded volume was 64% compare the total volume during the last 5 mins. For ES it's a very big number



The price has fallen down to zones of the previous day. And we expected it return to our zone.

The price fully covered the zone. Now we just waiting when the zone will appear...

We are waiting for down move from 2990 to 2980.75

Picture will add later

Ok. We have strong levels on 2990-2992

We have very extremely movement on ES futures today...
https://twitter.com/Quantower_app/st...300265473?s=20

At the time of writing the post on Twitter, ES had a couple of strong zones that could be tested — 2994.75 and 2944.5



After that, we saw a huge imbalance in the order flow, and as a result, the price went up





https://www.quantower.com/

Hi, your app shows abnormal contract volume, which instruments are available besides ES/NQ?

Where from you get data, which broker?

Can you provide more analysis, for example possible iceberg orders, vanishing (spoofing) orders?

Yes, this tool shows big volume (execution) for the specified time (like 1 or 3 sec, or 1 min, etc.). Because such behavior goes beyond the "calm" flow of orders and execution, then after the appearance of such zones, the price may then react to these zones. For example, test zones, price reversal and other patterns.

On my screenshots, I show ES (primary) and soon will show other indexes. But this tool can work on CL, GC, currency futures and stocks. But for each instrument, we need to set Right parameters that will help us find patterns with some predictivity.
I use the IQFeed connection (real-time data). Soon we will add CQG connection (we are still waiting for final approve form CME).

About icebergs, it's no easy task, because the exchange provides data as equal packages and it's difficult to calculate real icebergs. Will try but I do not guarantee.

At the moment we are working on our new Order Flow panel which will show the limit order book as a heatmap. It can help traders to determine patterns such as spoofing, absorption, exhaustion

Thank you.

today we have an interesting situation on ES futures


on NQ futures (NASDAQ) we are waiting for up movement, but it's only our opinion

Here is how power trades works on main trading session )

ok, first target is reached. We see big order on 2990 and we guess that 2991 will be reached.

Guys, I've created a Telegram group about our platform and power trades. Please join https://t.me/quantower_futures

NQ reached the level and even went further

Hey guys,
Today we have some interesting moments on ES, NQ and DJ. Unfortunately, I have no enough time to publish my thoughts on this thread (if you would like to discuss our Power Trades tool or our platform, you can join to my personal telegram channel https://t.me/quantower_futures

For ES, I told to my friend that the price can be reached 2995.5 and 2992.25. The last price level didn't reach, so we are still waiting for it later.





For DJ I still waiting for the price 27 702.

For ES we have interesting zone at 3002 that will be tested (probably today). Note that today will be FOMC Statement and Federal Funds Rate

So, the price has dropped significantly, breaking through the previously indicated level of 3002. Now we have a couple of uncovered zones (3003,5 and 2982,5).
Probably these zones will be tested tonight or on europian session
https://t.me/quantower_futures