Third Basic Information after Price and Volume -> Order Flow

sameer
Hi Kite Team,
One information(like Price and Volume) is getting popular and widely accepted in Market: Order Flow.

1) Basically OrderFlow is calculated using tick information.
For example,
Method-1:
if current bid price is X and current ask price is Y then
i) if next trade price is X then that trade is considered as BUY trade
and ii) if next trade price is Y then that trade is considered as SELL trade

Method-2
1) if current trade price > previous trade price, current trade considered as BUY trade
2) if current trade price < previous trade price, current trade considered as SELL trade

U might be already familiar with Order flow or u can read in detail about it on Internet.

Reason for telling examples is: Importance of granularity. In order to compute Order Flow accurately, u need to capture all trades i.e if 20 trades happening in one sec then u need to capture all 20 trade information in one sec.

Currently u r dispensing only 1-2 trades per sec and hence there is no way one can calculate accurate Order Flow.

Would it be possible to compute Order Flow on your end with powerful server that can capture all trades AND directly provide Order Flow info through candle API(like one minute candle) ?(that way u don't have to give all trades in streaming)

For example in one minute candle API, U can provide:
Number of trades in last one minute : 375
Price: 114.05: Buy Trade Volume: 100000, Sell Trade Volume: 447334
Price: 114.10: Buy Trade Volume: 34443, Sell Trade Volume: 34355
Price: 114.15: Buy Trade Volume: 342554, Sell Trade Volume: 344343
Price: 114.20: Buy Trade Volume: 454566, Sell Trade Volume: 334355
Price: 114.25: Buy Trade Volume: 333444, Sell Trade Volume: 23233
Price: 114.30: Buy Trade Volume: 23313, Sell Trade Volume: 2333


Please don't consider it as one of many indicators. Order Flow is very basic information like Volume information.
One can derive many indicators from Order Flow information
  • sameer
    You can do this only for liquid NSE stocks(like A group) and Indices(like NF, BNF) F&O and Underlying instruments
  • sujith
    Hi @sameer,
    Kite Connect is purely an execution platform. We don't provide any kind of strategy algorithm or values as such.
This discussion has been closed.