thread: Order Flow - Achieving the mindset

66950

throw key MA's or BB's on a daily and 4hr... are you gonna go against it? not me.... Not unless I have a damn good reason. I just wait for the extremes.... Try to get a good handle on whats happening, and do my intraday thing. However, I do attempt to keep it as simple as possible.

No no u got it wrong.

What I meant was that when I have my opinion analysis (dont know what else should I call it) right next can only open a chart and have a trade based on an MA crossover (not from it), or TL touch or a Pin bar as it could be the situation now with gu 4h. Cause at core I am still a specialized trader and I need some reference points (entry, sl) on my charts to trade the situation I think is occurring behind the charts.

I have been following your post Monroe and I feel we're on precisely the exact same road the way interpret this stuff. Cause we give amount of importance to charts that they deserve and are eager to learn story behind them.

But I seem to be far behind you as I have less knowledge.
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66950Fractional pricing is market driven. Utilizing our proprietary rate engine, we aggregate prices from some of the world's top FX banks, at real-time. Because quotes are based from bank prices, coping spreads will change to reflect Foreign Exchange market liquidity.


http://www.openecry.com/software/fx_pricing.cfm

66950

No no u got it wrong.

What I meant was when I have my sentiment analysis right next can only open a chart and take a trade based on an MA crossover (not against it), or TL touch along with a Pin bar as it could be the case now with gu 4h. Cause at core I'm still a specialized trader and I want some reference points (entry, sl) on my charts to exchange the situation I think is happening behind the charts.

Now I think we're pretty much on an arrangement.
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Haha no I understood you perfectly. No arguments from me bro!

66950

Thank you for the visual but nice article!

Smoking a cigarette and thinking about things. What would wrong with this as I my parents dont know so I do it at the 20, that smoke.

Ahhh oh that is gross....
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66950Does order flow based trading have to be performed on real-time basis or can you do it using daily charts?

66950I could be way off on this one, but looks like there could be a defense going on in EUR/USD. I think there's a barrier of 3775 on a DNT alternative.

Like I said, I could be incorrect, but it may be something interesting to see if you're in a position to.

66950http://www.reuters.com/article/2011/...30109220110307

Gains accelerated on Monday as stop loss orders were triggered the break of $1.4005 and $1.4025, although the rally stalled ahead of an options barrier at $1.4050. More option barriers are thought to be put at $1.41

Well. . Now what?

That the FX is algo driven.
Everyone who pays attention to market depth (micro opinion ) will observe a lot of sound.
In the money market happens quite the same.

http://img822.imageshack.us/img822/8440/noisydepth.png

92120

Yeah the FX is very algo driven.
Everyone who pays attention to market thickness (micro opinion ) will notice a lot of sound.
In the cash market occurs the same.

Hey Unnamedplayr,

I'm really interested in finding out more about the way the algos are operating. From the majority of my study I see they are currently executing a lot of orders these days so to have a egy around trading them would be very handy constructed.

In doing the detective work I'd state that the best method to find them is by checking for footprints along there benchmarks on various time frames and seeing if there's any reaction by price being close them to ascertain if orders have been executed there or not. This would most likely be sub 5 mins as the algos are working to reduce market impact. Now I do understand that these levels are lively.

With TWAP I think that if we were to determine swing points being made at regular time periods then we could maybe join them. However the algo would have needed to put possibly 2-3 orders to the market before this could be realized. This would also being predicated on the fact that the IOC orders being executed would leave some kind of trail.

With respect to VWAP is this calculated on a per trade basis i.e The VWAP starts being calculated as the orders are executed? For this we would need to have some notion of the market volume being traded to ascertain our vwap calculation. This 1 thing I'm really not certain about.

These are just two of the very well known benchmarks from what I've found are there anymore that would be significant?

What I find now being difficult is to monitor the IOC orders especially when the algo is also only trading place sizes relative to current liquidity to reduce market impact. When studying the EURUSD a couple of days ago I'd notice this little curve glaring at me and when I measured it with time and price there was small relationships between the time between the distance as well as the swing lows the market moved? To me it just looked somewhat to non random and especially with it being on the 1 minute chart. Was this because I had had my drink The link to the chart as I know that Carnegie desired to maintain this thread chart free.



I'd want to hear a few opinions on this.

Darkstar: Thanks you for your words of encouragement its folks like you and the other guys helping us out that keeps us on track if not this thread will probably be dead in the water by now.

All the best folks.

James.

PS Perhaps we need to start looking for all these patterns on the chart.

Article by me again.

To become an order flow trader you want to stop spending some time about the things that won't or nearly never will generate adequate order flow to transfer price and begin spending some time about the things that can generate order flow and transfer price and give you an advantage.

You need to get a fantastic motive, rooted in adequate order flow to your trade to be successful. You need to have a fantastic reason for the expectancy of your own body. You need to get a reason for putting a fantastic trade. You need to get a reason for believing that the market will move after you establish your position.

After everything you are going up against some other fantastic traders which might have implemented trades a couple of pips before you. What makes you believe your trade is in the right moment? What's the main reason behind your commerce being successful?

I wish I could just place great trades without having done the essential work to determine if there'll be adequate order flow that will come in the market. I wish I could spend 5 minutes a month, wave my order flow wand and come up with such killer order flow trades.

Regrettably you need to spend the order flow work to ch the killer trades. It will get considerably easier over time, but there is still some work involved.

So whats your reason?

/ending of random article