Trading Institutional Order Flow | Page 216 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

What is order flow trading? 93 replies

How to flow with the order flow? 26 replies

Order flow trading thread 166 replies

Domino's Price and order flow trading 1,400 replies

Order Flow Trading with ICCE Channels 3 replies

Attachments: Trading Institutional Order Flow
Exit Attachments

Trading Institutional Order Flow

  • #4,301
  • Jul 16, 2017 4:43am Jul 16, 2017 4:43am
Quoting Akt
{quote} hello tony1200 If i may, i think a definition for freshness may help you going forward. The Freshness of a zone is determined by looking to the right of the zone The assessment being made by looking right is whether or not price has returned to the price level since the price level was created. best wishes
In one of the videos ....you mentioned looking to the left also....what does that pertain to?.....(looking to the right for freshness)

Thank you
  • #4,302
  • Jul 16, 2017 7:06am Jul 16, 2017 7:06am
Quoting tony1200
{quote} In one of the videos ....you mentioned looking to the left also....what does that pertain to?.....(looking to the right for freshness) Thank you
Hello tony1200

It pertains to zone authenticity - a different concept within the methodology

best wishes
Be careful what you think because your thoughts run your life..Solomon
  • #4,303
  • Jul 17, 2017 12:49am Jul 17, 2017 12:49am
Good morning everyone

A short term look at the US dollar.
What happens to the US dollar has implications for the other dollar based pairs

Have a great trading week everybody.

best wishes
Attached Image (click to enlarge)
Click to Enlarge Name: dollar fx.PNG Size: 131 KB
Be careful what you think because your thoughts run your life..Solomon
  • #4,304
  • Jul 17, 2017 1:59am Jul 17, 2017 1:59am
Quoting EVolta
Dear all, Some question on usdcad Monthly: {image} Weekly: {image} Trendline is down, are we targeting the purple zone on downside? is it valid tested or un-tested? My opinion its tested on 06-06-2016, do you think it will get deeper penetrate or get removed? let me know what you guys think. thanks
reach weekly zone. no sign of bull yet
Attached Image (click to enlarge)
Click to Enlarge Name: 123.png Size: 42 KB
  • #4,305
  • Jul 17, 2017 5:41am Jul 17, 2017 5:41am
I've spotted this DZ on the XAU USD Daily chart, zoomed in to see a nice entry possibility on the 3H chart.
For me this is an interesting zone, since it broke the diagonal resistance line on the Daily after a 5 week downtrend.
The nearest supply zone is also far away (for the moment).
If price retraces to this DZ, I will be watching for a buying opportunity if price reacts or buy the 3H DZ as a set and forget.
Attached Image (click to enlarge)
Click to Enlarge Name: XAU USD Long.png Size: 84 KB
  • #4,306
  • Jul 17, 2017 6:16am Jul 17, 2017 6:16am
same kind of zone, but on the short side for USD JPY
Attached Image (click to enlarge)
Click to Enlarge Name: USD JPY Short.png Size: 85 KB
  • #4,307
  • Jul 17, 2017 8:01am Jul 17, 2017 8:01am
Quoting minosd
I've spotted this DZ on the XAU USD Daily chart, zoomed in to see a nice entry possibility on the 3H chart. For me this is an interesting zone, since it broke the diagonal resistance line on the Daily after a 5 week downtrend. The nearest supply zone is also far away (for the moment). If price retraces to this DZ, I will be watching for a buying opportunity if price reacts or buy the 3H DZ as a set and forget. {image}

Hello guys! another trading week!

Minos your trading idea gave me an idea, what do you guys think? might be a nice entry at 1H timeframe.

D

Attached Image (click to enlarge)
Click to Enlarge Name: Captura de pantalla 2017-07-17 a las 14.58.54.png Size: 163 KB


H4

Attached Image (click to enlarge)
Click to Enlarge Name: Captura de pantalla 2017-07-17 a las 14.59.30.png Size: 145 KB


H1

Attached Image (click to enlarge)
Click to Enlarge Name: Captura de pantalla 2017-07-17 a las 14.59.49.png Size: 117 KB
  • #4,308
  • Jul 17, 2017 12:57pm Jul 17, 2017 12:57pm
Going Short on USD/JPY

Reason for entry :

  1. Weekly Supply , playing ping pong
  2. Daily ascending TL broken
  3. H4 ascending TL broken as well . Entry within D1 CP.

Possible loss :

  1. D1 demand is still in control. Hmm..


Here are the charts:

WK:

Attached Image (click to enlarge)
Click to Enlarge Name: 2017-07-18 01_02_09-NVIDIA GeForce Overlay.jpg Size: 410 KB


D1:
Attached Image (click to enlarge)
Click to Enlarge Name: 2017-07-18 01_02_40-NVIDIA GeForce Overlay.jpg Size: 473 KB


H4:
Attached Image (click to enlarge)
Click to Enlarge Name: 2017-07-18 01_02_47-NVIDIA GeForce Overlay.jpg Size: 518 KB



Let me know your thoughts and opinions on this process! Thanks and have a great trading week!

Cheer's
Isaac
The only person you are destined to become is the person you decide to be.
  • #4,309
  • Jul 17, 2017 4:14pm Jul 17, 2017 4:14pm
dont know where you got in on the 4h

if i was trading this -- i would be looking for

pull back to 4h sz

or looking for 4h to take out daily demand then pull back short

hope this makes sense

W
Attached Image (click to enlarge)
Click to Enlarge Name: USDFF.png Size: 212 KB
  • #4,310
  • Jul 18, 2017 1:51am Jul 18, 2017 1:51am
Quoting Winston2017
dont know where you got in on the 4h if i was trading this -- i would be looking for pull back to 4h sz or looking for 4h to take out daily demand then pull back short hope this makes sense W {image}
I agree with your analysis, a down trend on D1 and H4. However, do not find an entry point until a pull back to the 4HR SZ zone above (broke a TL), removal of the DZ will improve its strength.

Attached Image (click to enlarge)
Click to Enlarge Name: USDJPY.png Size: 75 KB
  • #4,311
  • Jul 18, 2017 3:27am Jul 18, 2017 3:27am
Quoting TophatTrader
{quote} I agree with your analysis, a down trend on D1 and H4. However, do not find an entry point until a pull back to the 4HR SZ zone above (broke a TL), removal of the DZ will improve its strength. {image}
Quoting Winston2017
dont know where you got in on the 4h if i was trading this -- i would be looking for pull back to 4h sz or looking for 4h to take out daily demand then pull back short hope this makes sense W {image}
Thanks for your reply . I have yet to enter on the USD JPY. My trade is planned on the H4 SZ you guys talked about!

Maybe I should've put "planning to go short" instead.
Sorry for the misunderstanding.
The only person you are destined to become is the person you decide to be.
  • #4,312
  • Jul 18, 2017 4:39am Jul 18, 2017 4:39am
isaacpeh

IMO THE WEEKLY IS STILL IN UPTREND

but if we break the daily demand that would signal a change

defo still be looking for pull back shorts to 4h or daily sup zones

again this will also depend on the rules akt teaches us

winston
  • #4,313
  • Jul 18, 2017 6:15am Jul 18, 2017 6:15am
Quoting Winston2017
isaacpeh IMO THE WEEKLY IS STILL IN UPTREND but if we break the daily demand that would signal a change defo still be looking for pull back shorts to 4h or daily sup zones again this will also depend on the rules akt teaches us winston
Of course. Only trade Supply zones on ther H4 or D1 . Better if its nested. Seems like the WK is in a equilibrium/consodilation on my charts. Supply respected and demand formed. Buy high Sell low. Hence , the entry placed on my nested H4 Supply!

Also seeing a SAF opportunity on the AUDCAD? Downside would be ugly D1 + Monthly respecting TL.

Attached Image (click to enlarge)
Click to Enlarge Name: AUDCAD.jpg Size: 798 KB
The only person you are destined to become is the person you decide to be.
  • #4,314
  • Jul 18, 2017 11:26am Jul 18, 2017 11:26am
Quoting isaacpeh
Going Short on USD/JPY Reason for entry : Weekly Supply , playing ping pong Daily ascending TL broken H4 ascending TL broken as well . Entry within D1 CP. Possible loss : D1 demand is still in control. Hmm.. Here are the charts: WK: {image} D1: {image} H4: {image} Let me know your thoughts and opinions on this process! Thanks and have a great trading week! Cheer's Isaac
Hello Isaacpeh.
thank you for your analysis on the USDJPY. Much appreciated

Some of my thoughts...

best wishes
Attached Image (click to enlarge)
Click to Enlarge Name: usdjpy ff.PNG Size: 118 KB
Be careful what you think because your thoughts run your life..Solomon
  • #4,315
  • Jul 18, 2017 11:36am Jul 18, 2017 11:36am
Hello everyone

A trade done overnight into today on EURAUD
Out for >3:1.
Following the decision matrix.
A straightforward set and forget i totally forgot about until it was over half way to target

best wishes
Attached Image (click to enlarge)
Click to Enlarge Name: euraud profit FF.PNG Size: 118 KB
Be careful what you think because your thoughts run your life..Solomon
  • #4,316
  • Jul 18, 2017 2:07pm Jul 18, 2017 2:07pm
Quoting Akt
Hello everyone A trade done overnight into today on EURAUD Out for >3:1. Following the decision matrix. A straightforward set and forget i totally forgot about until it was over half way to target best wishes{image}
There's a nasty zone on the weekly on my broker that prevented me from taking the trade..
Attached Image
The only person you are destined to become is the person you decide to be.
  • #4,317
  • Jul 18, 2017 6:12pm Jul 18, 2017 6:12pm
Does anyone feel like taking a break from the charts to answer a nuts-and-bolts question about Supply and Demand zones that has had me scratching my head for a while?

Hello everyone, Im Gary from Austin, TX (hence the screen name). I have been trading Forex for about a year, the last three months of which I have become progressively more interested in trading institutional supply and demand levels. I still consider myself a rookie and as such I am very grateful to Michael for providing this wonderful learning resource, and especially for promoting such a positive culture for peer-reviewing trading ideas. I have spent many hours reading through this thread and want to give you all a huge big up for the politeness and courtesy you show one another!

So to my question... Conceptually I understand that a Demand Zone is a region on a price chart that is populated with an abundance of institutional-sized Buy Orders, and similarly a Supply Zone is populated with an abundance of institutional-sized Sell Orders. And it is my assumption that these are Limit Orders: Buy Limit Orders in a Demand Zone, Sell Limit Orders in a Supply Zone. I base that assumption on the fact that Limit Orders are price specific, essentially anchoring the order to a specific price.

This makes perfect sense to me when looking at how Drop-Base-Rally (DBR) Demand Zones are formed: The institutions place their Buy Limit Orders below the price that an asset is currently trading, populating the zone, and price drops into it.

But what about Rally-Base-Rally (RBR) Demand Zones? It is my understanding that a Buy Limit Order can not be placed above the price where an asset is currently trading. So how in practical terms does a Rally-Base-Rally Demand Zone become populated with Buy Orders?

I understand that a Buy Stop Order can be placed above current price, but as I recently discovered (the hard way!) when a Stop Order is used (to enter or exit a trade) it essentially becomes just a Market Order once price has triggered it, and hence is vulnerable to slippage. So would an Institutional trader expose themselves to risk of slippage and use Buy Stop Orders? - Or is there some other way that a Rally-Base-Rally Demand Zone becomes populated with Buy Orders?

(In the interest of brevity Ive just asked about Demand Zones, acknowledging that the same logic applies to Supply Zones in the opposite direction).

Thanks in advance to anyone who can enlighten me!
  • #4,318
  • Jul 18, 2017 8:09pm Jul 18, 2017 8:09pm
Quoting Atx
Does anyone feel like taking a break from the charts to answer a nuts-and-bolts question about Supply and Demand zones that has had me scratching my head for a while? Hello everyone, Im Gary from Austin, TX (hence the screen name). I have been trading Forex for about a year, the last three months of which I have become progressively more interested in trading institutional supply and demand levels. I still consider myself a rookie and as such I am very grateful to Michael for providing this wonderful learning resource, and especially for promoting...
Hello Gary.
Good to meet you and Welcome to T.I.O.F

a most interesting question, one with a very simple answer.
You see, demand zones are ALWAYS below current price and supply zones ALWAYS above current price.
The reason for that is also simple. If price is at X price, that means that any orders to sell on the way up to said X price must by definition have been filled. That is the only way price could have traveled up to X price. So if an institution wished to buy low, they must by nature be buying lower than where price is at any point in time. That is why when prices are rising and there is a RBR below, ie buy orders (irrespective of the type of orders but obviously these can only be limit orders because they are below current price-do you see?) then that RBR will hold given certain other criteria such as trend being met.

To summarize, one can not have a RBR DZ above current price neither can one have a DBD SZ below current price.

best wishes

p.s zones we speak of, many assume that institutional order flow means the institutions leave orders there but this is not often the case and would not be a plausible explanation for why zones that are years old would hold on the return of price to such levels. It is more that "markets (human beings) have memory and the same institutions who created these levels are very well aware of them and will interact with price again on its return to these levels, however long after. Other factors to consider on that return include the current state of play in terms of supply and demand, at that time.
Be careful what you think because your thoughts run your life..Solomon
  • #4,319
  • Jul 19, 2017 5:53am Jul 19, 2017 5:53am
EUR CHF short opportunity after price reacts well to the weekly supply zone
Attached Image (click to enlarge)
Click to Enlarge Name: EUR CHF short.png Size: 100 KB
  • #4,320
  • Jul 19, 2017 5:59am Jul 19, 2017 5:59am
Quoting minosd
EUR CHF short opportunity after price reacts well to the weekly supply zone {image}
I have my H4 entry set there as well! Let's hope this plays out

cheers.
The only person you are destined to become is the person you decide to be.
32 traders viewing now