The Correlation Between Prediction Markets and Trading Markets
At 8:50 AM, the prediction market (Polymarket) saw a big buy order for 'yes'. Meanwhile, the trading market (Binance) had a surge of longs entering at 9:05 AM. Is this the interaction between the two markets? Should we also keep an eye on Polymarket when doing trade analysis in the future?
Order Flow Analysis Chapter Four: Specific Trading Strategies
Chapter Four: Specific Trading Strategies Don’t try to trade everywhere. Only open positions in these two scenarios. 4.1 Golden Rule: Background + Setup Analyzing footprints in the middle of nowhere is pointless. Must be used in the following locations, TPO levels (POC, Single Print, VAH/VAL). 4.2 Setup #1: Absorption (Trap) This is the 'King of Setups'. Background: Price hits a critical resistance level. Volume: Huge volume, but the candlestick shows no progress (candlestick size is very small). CVD/Delta: Very aggressive (buyers on the offensive), but price stagnates. Reason: Some limit sell orders (iceberg orders) are absorbing all buy orders. Buyers are trapped.
Order Flow Analysis Chapter 3: Footprint Chart (FOOTPRINT)
Chapter 3: Footprint Chart (FOOTPRINT) Stop guessing. With the footprint chart, you can see inside the candlesticks. 3.1 Interpretation Imagine a cut candlestick chart. At each price level, you have: BID x ASK. Left (BID): Aggressive sellers (market sell). Right (ASK): Active buyers (market buy). 3.2 Diagonal Reading In the market, when you buy, you need to hit the limit orders of sellers positioned above. Be aggressive in a 'ladder' style. To analyze who’s winning, always compare the buy and sell prices at a certain level with those above.