DislikedInvestment as an entrepreneur...DislikedHi Bionic Michael, I finally made some good investments in Forex. Hello Wulong First of all, I'm happy that you are investing time to make progress. That is the most important aspect for a trader. I also started with the tick charts to be closer to volume and price changes. It is quite normal for this to take some time. Back then it was also very difficult for me, to understand how the professionals can only deal with the DOM and the time and sales list. As a trader, you always fall back on yourIgnoredIgnored
I agree in 99% of Michael points, of course it is normal a person disagree in some aspects/points specially in a such huge endless market as are financial markets.
But respect always first we must respect each other in disagree.
But one thing that I have been watching very closely for the last years is that MM's /SM as Michael mentioned before, act almost every time in passive way...
But what is that mean ?
Means that if they want to increases the price they wont be starting buying and buying until the price goes up or down we all know the market is 100% manipulated so they will always want to buy cheap and sell expensive and vice versa...
LOOK this is not a receipe of success as I mentioned most of time, if they have to buy or sell a big amount of position and they don't have time they will period.
And those actions are clearly seeing in DOM and times and sales you just need to exercise your eyes and watch, the reconstruct tape it is also a good tool as you can see the big orders together and not one by one in regular times and sales.
Footprints chart also helps.
Another point is that when they start to build positions they need liquid so they know that most part of traders will buy/sell and put their stop loss above or below one S or R and that we call stop hunting cause they wont stop to buy or sell when they already started to build a position let's say of 4000 lots, they will continue buy or sell and hunt stop loss cause creates liquidity to they keep their positions.
Another point and important to understand I AM NOT SAYING THAT OUR STOP LOSS CREATE THE LIQUIDITY THE MMs need or want but I guess you all can understand that it us why most of trader of retail are stopped.
The MMs can buy and sell together etc...
But with time you will see very clearly when they start to build their positions, and with that you earn a little vantage cause you know where they are starting and how big they are creating a position some times are huge positions to long and short time, and if they are huge you know that they are able to defend their positions and we all know that cash is not a problem to MM's whatever you want to call.
With time in order flow in my personal experience you can work out just with DOM, of course it depends of each individual and their development in their knowledge, confidence etc...
But that does not mean that I don't like charts, one and other indicator. That is not what I am saying here/mean to express.
If your strategy works for you with no indicator or 100 indis it is ok.
But for me the most important thing is what Michael mentioned above.
If you get a point where you start to "believe" that you are comfortable or knows all about financial markets...
In my humble opinion it is the start of the end of a trader carrier.
Financial Markets are so huge that every day I learn one or several things and I guess all you buddy's