Market generated information for use in futures trading
January 11th, 2024
The old saying, “Context is key” can be particularly applicable to day trading and traders looking to pull quantifiable, valuable data from both present and past markets. Market generated information (MGI) is just as its name implies: data and levels derived directly from the market and from participant (trader) activity.
Why is market generated information important?
Futures traders can create ideal trading opportunities by utilizing market generated information in digital charts as part of their day trading toolkit. Market generated information in digital charts can help traders:
- Gain market context and understand the road map of where the market’s been and where it’s likely to go.
- Identify crucial areas in the market and where it’s currently trading to help guide the decision-making process.
With market generated information, traders can ask themselves the important questions: “What areas do I want to engage with, and what context do I want to take from the market to utilize in my trading?”
In a recent NinjaTrader Ecosystem webinar, OrderFlowLabs’ Leo discussed “Effectively Utilizing Market Generated Information in Futures Trading.”
Market generated information timeframes to consider
Market generated information digital charts include regular trading hours from cash open (9:30 am ET – 4:00 pm ET) and Globex (6:00 pm ET – 9:30 am ET). These two daily MGI sessions can be incorporated into one daily MGI tool. Traders can also consider weekly and monthly MGI data.
The importance of MGI data for traders is that it allows them to pull statistics based on timeframe; automate the data, put it on a chart, and export it; and run the statistics for a view on what’s happening in the market at a given time, according to Leo at OrderFlowLabs. Some examples of MGI data points are:
- Value area (high, low)
- Market open and close
- Point of control (i.e., the price level at which most trading activity has occurred)
- Historical value area
- Historical market open and close
- Volume-weighted average price (VWAP)
Futures traders can benefit from these automatically generated charts and plot points to use as market context when trading. View the full webinar for more details on market generated information.
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