thread: Order Flow - Achieving the mindset

66950

Whats interesting is that the flow pattern USD/JPY created the first two hours after the quake hit.

Nicely, all of the companies which operate in Japan might have to buy yen to perform the business repairs for what's happening there. So it kinda makes sense?

66950

nicely, all the businesses which work in Japan will have to buy yen to do the business repairs for what's occurring there. So it kinda makes sense?

No because (assumingly) their money is in Yen so there's no Trade necessary.

66950

1st into Darkstar's comment, he's correct as closed wind systems aren't true orderbooks, they're visible, but not true to the sense as they're only what the broker wants you to watch....

For a retail trader, who do you suggest as a broker to fulfill your requirements?

66950

No because (assumingly) their money is already in Yen so there is no Trade necessary.

What I was thinking is they have to set a lot more money into the nation. I really don't know, just a thought on why. I simply go with the flow till I can figure this out better.

66950

What I was thinking is that they need to put a lot more cash into the nation. I don't know, just a thought on why. I just go with the flow till I can figure this out.

I don't know . Hm so they must borrow money from somewhere? Like USD maybe, this means they convert them into Yen meaning an increase and then would borrow USD and reduction in the distribution of USD. This in theory should have the opposite effect of what exactly it did where requirement for the USD should have risen and supply of the increase meaning the USD/JPY should have gone up not down in this situation...

Hm

Possibly another possibility is some sort of defense against the USD/JPY hitting a greater price.

I honestly have no clue but I find it very interesting

66950http://www.forexlive.com/172588/all/...appen-in-japan

and a bit from boj manipulation

66950

http://www.forexlive.com/172588/all/...appen-in-japan

and a Little from boj manipulation

Thank You for the Connection Dragan

Since Japan is a net-exporter of Funds. Money which could otherwise be slated for investment in search of higher yields is unexpectedly diverted to domestic use. In Addition, Japanese carriers invest large amounts overseas on higher-yielding instruments and are made to bring those funds home to cover claims. Foreign insurers need to buy JPY to cover claims.

That clears a few things up, cheers. To find a answer in a scenario that is seemingly impossible is a thing that is great. That is my homework for the day lol Dragan did it for me. I guess on Monday I will begin doing my own.

If you had knowledge of those details before the quake when it hit and everyone else was attempting to sell the yen you could have been on the informed side of the equation.

66950redbaron1981,

I was not speaking about market profile.
HVN (liquidity concentration places ) can be static benchmark points however, the algo traders don't pay automatically much attention to them if they're shing heavily cash.

92120USD increase / JPY dropped when fundamental values didn't change (or even as soon as the tragedy favors the the opposite of price movement as dragan53 posted) during a clear volitile period.

Buy stops loed above 83.0 managed to take big money sells as you can see in the consolidation until it fell.

92120

Because Japan is a net-exporter of funds. Money that would be slated for investment in search of higher yields is diverted to domestic use. On tools, large sums are invested by Japanese carriers overseas Additionally and are forced to attract claims to be paid by those funds dwelling. Foreign insurers also have to buy JPY to pay claims.

Living here in the Japan, the pictures on television are catastrophic.

Assessing what happened to the UJ, orderflow can possibly explain a lot. Price initially spiked up 50 pips to extract stops over 83.10. Then fell down (as a result of vacuum?) . Don't we see this occur all the time after major news announcements? The initial move is a bogus out...

Subsequently price fell back down and conducted stops at 82.60, 82.20, and today at 82.00. You can bet it has its eyes on 81.70 and 81.50. I'm not saying that there are not legitimate fundamental reasons for this fall. But you believe a bunch of traders are using this as a chance to make some serious cash. And a few brokers are currently taking this opportunity to clean their orderbooks.