• How the imbalance is formed
• How to match orders
• How the imbalance affects the opening price at the stock exchange
• How to earn money using this strategy
Order Imbalance strategy is mainly applicable to companies traded at the NYSE.
In the season of reports or when news important for the company are released, many major traders submit their orders before the opening of trading on the stock exchange, so that the orders are executed as soon as the trading is open. This leads to an imbalance between buyers and sellers at the time of trade opening, the greater the imbalance is, the greater is the deviation of the price and the potential profit.
The strategy requires very little time to prepare and conduct transactions, which makes it convenient if you have a tight schedule and you can not be around the computer for a long period of time.
The pros include having a sufficient amount of time to open a deal and wait for a solution.
This strategy is not similar to scalping or fast trading, so there is no need to get skilled for quick manipulation with orders.
• How the imbalance is formed
• How to match orders
• How the imbalance affects the opening price at the stock exchange
• How to earn money using this strategy
• Software (Sterling Trader Pro, Thinkorswim)
• Filters for specific types of stocks
• Fundamental assessment of potentially interesting companies
• Analysis of volumes
• Estimation of the size of imbalance and liquidity of stock
• Calculation of transaction direction
• Types of orders used for execution
• How to enter the position
• How to calculate volume and risks
• How to set orders to exit the position
Guys, you have to increase the course price. Otherwise a lot of people will come running and the strategy will stop working. In general, such strategies should be given only to a limited circle of traders.