OrderFlow Labs

Re-Bid and Re-Offer

Re-Bid and Re-Offer

OrderFlow Labs Discussion on Rebid and Reoffer

In this edition of the OFL Blog Series, we are going to dive into rebids and reoffers. So, what is a rebid and reoffer? A rebid is when price comes back into prior area of bid activity, and it is able to find the buyers active there once again, whereas a reoffer is pressing up into an area where there was previously aggressive sell activity. Lets walk through some of the ways you can monitor this during an intraday session or on a bigger timeframe. That way, you can help either join the trend, or gauge an ideal location for entry after a rotation or bottoming or topping type activity.

And so we’re going to look at here, this is NQ, simply with a 2000 trade chart. You can use any particular chart that you want to look at. But if you look at this down here, you can see this bottoming type activity where it bid aggressively up into here, and then price came back in.

Now, what do we want to see? Well, where did that aggressive bid initially arrive? So even as we come out of this zone, we can see this wide bar up right here. And so this bid up into the zone, and as it returned to the area of that aggressive bid, we catch a rebid, which allows us to gauge the bid activity and enter long in this, even upon missing this lower, slower activity down here. It was with defined risk management.

As price approaches back into that area of acceleration where the bid returned, here. If this were to traverse that zone and get under the initial bid, we know that it can begin accelerating to the downside. And so let’s remap this out. So, price here is moving down. And then all of a sudden, we have a change of direction, change of sentiment there. And so price comes up, we get this mess here, which pushes back into that area of aggressive auction bid activity, and it finds the bid here, which drives it backup. And this occurs yet again, because if you look slightly thereafter, from this zone, we can see they rebid that again through here. And as that rebid through here, we can do that again like this, and vice versa.

For a valid rebid and reoffer, we’re looking for is areas of acceleration or aggressive, one-way auction activity that drives price out of range. Then we’re simply looking for every return to that zone. As we return to that zone, we want to see the bidarrive and offer an area of low risk, in order to get on board with the primary direction of the move, gauging against that prior low.

This type of set up really good for longer timeframes, like 30 minutes. Look at a 30 minute here, what we can see is on the 30 minute, we get this aggressive auction up there. And what we can say is that upon returning to this zone, that was initiated, we should be finding more bid as we do there, and then again here and that manner. Now, same goes to the to the inverse. Where that acceleration occurs, we can see that it is met with some resistance until it finally has that final rebid most recent from here where it drives up through that. Gauging this activity\ upon larger rotations is particularly beneficial. You typically do get a response. I like to look at 30 minute like this here, coming all the way across, and you get that activity here.

You want to watch for wide bar zones, where did they initiate. Find the real tight zone, where are they initiated from. \As price comes back to it, you want to gauge the activity of the bid stepping back in, or the offer conversely, the other side, and that’s rebid and reoffer. You can look at this on multiple timeframes as this is very beneficial, even intraday.

Watching these zones as they occur in sequence will help gauge a map of the auction activity and help you also find nice primary areas of entry. We’ve automated this with OrderFlow Labs where the boxes will show up automatically and help you gauge that activity. They’ll turn off once they’ve been traversed or they’ll change color. That is a convenience thing for us to be able to see intraday and be able to utilize that to our advantage.

Thanks  for reading along. Feel free to reach out with any questions and be sure to check out the rest of the OrderFlow Labs blog series to see more tips to improve your intraday trading.