thread: Order Flow - Achieving the mindset

66950

I have not been able to post much lately because of flurry of mid-term examinations, but I have a short break in between, and believed that since I'm currently unable to sleep, if take the opportunity to pen down some ideas I had seeing some psychological excursions my subconscious has been on recently.

The epicentre of my thoughts, is your EUR/USD. Lately, we have observed the ECB hinting almost unequivocally at the prospect of an interest rate increase of at least 25 basis points as early as the next meeting. Such a hike would inevitably prefer long...

Great analysis

Can you think about GU being good oportunity for long today?

66950

I haven't been able to post much lately because of flurry of mid-term examinations, but I've a short break in between, and believed that since I'm currently unable to sleep, should take the opportunity to pen down some thoughts I had regarding some psychological excursions my subconscious has been on lately.

The epicentre of my thoughts, is your EUR/USD. We have seen the ECB hinting almost unequivocally in the prospect of an interest rate hike of at least 25 basis points as soon as the next meeting. Such a hike would inevitably favour long...

in addition to the surprise agreement on how big EFSF over the weekend to cool the debt crisis in the short term.

66950

Good analysis

Would you think about GU being great oportunity for long today?

Unfortunately I haven't been keeping abreast with great old Cable I will try to get abreast with current events whenever possible though.

@Monroe

Plus the surprise agreement on how big EFSF over the weekend to cool the debt crisis in the brief term.

It irks me that I had been too tied up to pay attention to any of that this week! But that knows..maybe it'll fall back down again for me to snag up it if I do lucky es.

66950

Only at the market available.

Http://online.wsj.com/article/SB1000...LEFTTopStories

I believe they still have some amunition also it will be this only one time in the event of further selloff of JPY pairs. 2c.

Those funds were injected into cash market not directly in to Ccy's. Yeah they had a result although not directly like an intervention (Japanese QE). IMO

also whenever BOJ wants to intervene they will always start talking about it days earlier so they could take yen down just as much they could by verbal intervention till they put some real bucks into it.
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66950

additionally if BOJ wants to intervene they'll always begin talking about it times before so they could take yen down as much they could by verbal intervention before they put some real dollars into it.
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Really...

66950

They did not intervene in the spot FX market so far as I know. I hear talk about adding strength and liquidity progr.

Sorry for the confusion. I have discovered the news big time

66950

I have not been able to post much recently due to a flurry of mid-term examinations, but I have a brief break in between, and believed that since I'm currently not able to sleep, should take the opportunity to pen down some thoughts I had regarding some mental excursions my subconscious was around lately.

The epicentre of my head, is your EUR/USD. We have seen the ECB hinting nearly unequivocally in the possibility of an interest rate increase of at least 25 basis points as soon as the next meeting. Such a increase would inevitably prefer long...

I left a few article about same things, some days ago.

That is DS's article that got me thinking this way, really I was thinking that far before but now it makes more sense.

https://www.cliqforex.com/bitcoin-cr...ge-indior.html
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66950It appears like a cease hunt in illiquid market, not intervention.

66564

You make a valid point about using any signal once you recognize the directional bias, but by using the signals you cite, your departing a whole lot of profit in the dining table. Would it not be safer to exploit the term order flow chances to get in early?

Yeah I agree that signals I mentioned will decrease profits also sometimes I may not receive the signal altogether to get at a movement that I believed would happen.

But I dont believe I am there however to exploit short term OF to get in early at the move and have little stops.I dont know where I am with this OF thing cause I haven't even begun reading about market micro-structure. I dont know yet if I want to go down this street.

I like the mindset facet of it.

I mean I'd like to develop the mindset of an OF trader. I need to process the information and assemble situations around it. Its fairly replicating what have been stated many times before that I want to know what's going to make people trade in the future. I dont know how much knowledge I have to do this but I'm trying with basic Fundamental/Intermarket/Technical things I already know.

If I can attain a mindset which enables me to take trades into management of the general market order flow than I am comfortable with entering a, Trend line signature or possibly a RSI 50 line cross knowing my trade is a winner regardless of what tool is used to get in the market. After I can attain trade and the mindset for sometime than I I will venture into things that is microstrusture to get to short term dynamics.
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66950A few days ago I meet with a professional trader from my country by coincidence ona venue. Once I found out he's a trader I knew I need to take the oppurtunity. . .and he was kind enough to answer every Q I needed.
He told me he worked for a bank overseas,then in a privete equity company as a trader and analyst and now he trades from his home,as he's financialy secure and preferes to be home.

I asked him concerning the orderflow and that he said something like that:
You wan't to know orderflow,just observe the price on tick chart or 1-5 second chart but not at each time and each price level!
The secret is to first find preceding R or S level on bigger TF,then you must know the trading hours of institutional traders. If you see price on these speedy TF's at the time on these types of supply demand amounts you may see what is happening and you may react much faster.

As all of us know big boys need to brake their positions to peaces,and he said he could usualy discover when the first round of significant buying/selling is beginning and he jumps onto the next wave!

Now this is basicly scalping,however he doesn't close the trade for just 5-6 pips!
He sometimes ches 100 intraday moves with just 5 pip SL!!! Amaizing!

He explained that some guys tend to fade brakeouts on 1H chart and this is very dangerous,since a retailer you can NEVER know for sure. But for him it is not becuse he deals on these small TFs,he knows where the momentum is going to take the price.

The most important thing that he said was TIME PLACE (of price).
If you got that right you'll get away with minimum drawdawn and fantastic reward.
But as I know fundamentals doesn't play a part in his methodology. He's just using short term orderflow to take his trade.

I really don't know whether it's all true or not,however, I mean to learn,since I am going to exchange with him next week (can't wait)

Is anybody from you OF traders doing something like?