What is any ocean but a multitude of drops?
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DislikedStop hunting is a small part of order flow trading, far from being the most important component of it.Ignored
DislikedStop hunting is a small part of order flow trading, far from being the most important component of it.Ignored
DislikedSentiment reading/thinking about other players' actions is for me the most important component.Ignored
DislikedI wouldn't say the media has any useful information. All you need to know about market microstructure and liquidity needs of large traders is out there in cyberspace. Tier one banks definitely have the power and money to move the market to a place where their customers are looking to transact. If Caterpillar wants to exchange two billion euros for dollars to bank profits on a contract, their bank will do whatever is necessary to make sure that transaction is done at the price Caterpillar wants. If that means creating a small breakout to entice traders...Ignored
DislikedWhat does working at a bank have to do with any of this? It's fairly basic stuff. Orderflow trading isn't some "secret" society like many on here on FF make it out to be. Seneca, in regards to the media..... I know your trading style revolves almost entirely around important price levels, but saying the media has no useful information is a bit nonsensical. First I think we need to define the media. If we are talking about some editorial written by a market analyst at CNBC.... then I agree. But ignoring news, general sentiment, and other global...Ignored
DislikedHi Merlin, Yes, the function of marketmaking is to provide liquidity. In most every market, theres always the bands of orders sitting looking at each other. namely the stops orders. They mostly congregate at the critical S/R bands, sitting there staring at each other. In not so many ways our job was to move the market around to match them. So we have to use our capital resources to move the markets around to fill them. The reward for that would be the spreads between these order. Of course there are other players , the limits orders which we try...Ignored
DislikedI think you may have mis-understood. My mentioning of marketmakers sweeps is not to imply that this is done to manipulate the markets. Be clear, that, the function of marketmakers is to provide liquidity. ie. providing the market at large , with a price to buy and sell , at all times, while under his watch. To carry out this function, he would have to use the sweeps to create market movement and to create liquidity to extend the swings, seeking out price levels of least resistance. Marketmakers do not create artificial pip moves, where-ever they...Ignored
DislikedStop hunting is such a vague and cryptic term these days. That is NOT all there is to orderflow trading imo. A better way to visualize the stop-hunting process is to think about what is happening in terms of auction theory: it's value trading. It's a cause/effect relationship between price and value, the effect just happens to be stops get hit, and 'some' traders get fantastic pricing. If I could give any advice to any individual who wants to learn orderflow, I would suggest to stop trying to trade the stop-hunting process that so many think is...Ignored
DislikedStop hunting with keeping macroeconomics and market sentiment is a part of OFT, Stop hunting solely based on a price chart is just breakout trading or whatever you want to name it. Because if you dont know 1)whats the current market sentiment is in terms of RoRo and fundamentals 2)where/why the orderflow will be generated that will push market towards the stops, then it becomes a guessing game like most other trading methods. You still could make money no doubt especially if have looked at enough stop hunt plays in action but it still will be a...Ignored