DislikedWhere to start? The market is like a big puzzle. If you are to analyze the market you need to adopt the correct mindset. I'm a big fan of the order flow mindset, which is strongly supported by some people on these forums, Darkstar coming first.
Some find order flow trading elusive because they think it's some secret trading method that gives the key to riches, and those who talk about it don't seem to want to let the secret go away. From the way I see it, as said above, it's a mindset.
So, why is the order flow so important? Because it helps...Ignored
"Altogether, the combined effect of news explains roughly 30 per cent of exchange rate changes....The direct impact shows up in prices practically without delay, while the indirect impact is also revealed within a few minutes." -- p. 29, Lyons' paper
On p. 24 of Fischer's price clustering article,
a chart shows that 1400EST has an especially high 'intraday distribution of SNB transactions'. The article said round numbers there, only I put a ray from the midpoint of 1-3pmEST and got interesting results.
Order flow is great. It's just difficult to find approaches on the chart to apply it in specific terms, when so much of the data is missing. Then one has to fit these few, spare pieces of order flow in with the majority (TL's and patterns, for me) approach.
There's likely other small, specific applications of order flow, and I'll keep an eye for them.
Thanks for waking me up to this.