Trading The Language Of Price (Mapping And Order Flow Shifts)

A warm welcome to all and thank you for taking the time to read the following post.

Now before I continue I am well aware there are thousands of posts and many ideas on Forex Factory. I want to be clear that I do not have an opinion one way or another on other members threads or posts and I respect everyone's opinions and ideas. We are all here to learn and grow as a trading community and I chose to post on Forex Factory as I believe it is more respectable than some of the other forums out there.

The other reason I am here and not on another forum is because I again believe the members here are on point and will be able to call BS when they see it. This is important to me because what I will be sharing will have a positive impact on those who want to become better traders. All I ask is that you have an open mind, be respectful when posting and NEVER berate another member. Please respect one another!

I will briefly go over who I am and then discuss the rules of the thread which I would appreciate all follow so we have a clean and pleasant environment for learning and growing together.

Who am I?

I have gone by many names over the last 23 years while navigating my way through the Stock Market and Forex Market.

I first started trading when I was 16 years old through an account my older Brother opened in America with Charles Schwab and there began a 23 year obsession with trading. Back then I was just a simple kid with no idea what I was doing and the starting balance was quickly and surgically removed from my account.

Fast forward 23 years and I have find my own personal way of trading born from years of experimenting, losing money, working with some amazing traders and psychologist and sitting side by side with top traders in the City of London.

There are many traders I have learnt from and out of respect I will mention them here. This list is in order of time from 16 years old till present:

Marty Swartz (Books)

I learned a great deal from reading His books and although He was a futures trader His methodology and attention to detail made its way into my own trading.

Jesse Livermore (Books)

I don't need to say much about Jesse, if you haven't read His story your doing yourself an injustice.

Greg Capra

Greg is the founder of Pristine.com and although I am no longer in contact with Him what I learned from Him was invaluable.

Paul Lang

Paul is a trader most will not know unless they were part of Pristine or Velez Capital. I had the pleasure of moderating a trading room with Paul and learned plenty from Him.

Oliver Velez

Oliver isn't everyone's cup of tea. Many years ago He founded Velez Capital Management with Charles Vacarro. The company went through many changes before closing down for reasons I have no right to discuss but I again learned a lot from Oliver.

Jared (Personal friend so you won't find Him Online)

Jared is a fantastic stock trader and even though He is just a name listed here to those reading what He taught me changed my trading for the better.

Stas (The best trader I have ever known)

Hands down the best trader I have ever met and worked with. What I learned from Stas regarding how price moves has over the years been abused by others online and claimed as their own but I can tell you He is in my humble opinion the pioneer in understanding order flow.

Sam Seiden

Many of you will know Sam and I had the pleasure of meeting with Him in person. Lots of insights and some of what He taught me I still use to this day albeit my own modified version.

Michael Huddleston (ICT The Inner Circle Trader)

I'm sure most of you will now who Michael is. As with Oliver, Michael is not everyone's cup of tea. I studied His free material along with going through His first mentorship and becoming a Charter member for years. I am no longer in the mentorship but I have learned plenty from Michael and although I do not agree with some of the things He does this doesn't mean I don't respect what I learned. I will also mention that I will not be discussing Mentorship material so please do not ask.

Why the thread?

For many years I have helped and taught traders and I believe the biggest problem is the trader. Many will agree but not many will understand this. It is easy to say the trader is the problem but I took it further in an effort to finally end the fallacy that the system or methodology is why traders can't make money trading. I know for sure that many traders on Forex Factory will agree that if the trader is disciplined and well rounded they can make any trading system or methodology work. I created this thread to help traders who struggle to separate the system/methodology from themselves. This thread isn't about calling trades or trade signals. God knows there are plenty of those available. What I am doing here is working on the heart of the trading problem. The trader! If you stick around I promise you will learn to be a better trader.

Rules

I only have a few rules which are listed below:

1. Everything I post is for education only
2. This is not a signal service. Please DO NOT take trades based on anything I post
3. Be respectful
4. If you berate or harm another member of the thread you will be removed
5. I do not use indictors, only naked price. This doesn't mean you cannot post charts with indicators on them but I will not discuss indicators at all only price action

Further information

If you would like to get a better feel for who I am and what I teach there are a few places you can go:

YouTube Channel: https://www.youtube.com/channel/UCn_...aMl_iv0wZLQ8HQ

Patreon Page: www.patreon.com/lsptrading

Lastly if you would like to contact me personally my email address is [email protected]

I look forward to posting, learning and growing with each of you.

LSP

Lets get started.

In an effort to get everyone on the same page I'll start with a simple exercise. Take a look at the chart of DXY that I have attached and note the levels I have noted.

What do you see?

This is a question for everyone and I expect lots of different answers so please post what you feel you personally see. I will post again once I have seen enough members contributing.

LSP

Order Block area price mostly turn there for test

Good Afternoon All.

I wanted to share some reasons why I started this thread and have recorded a short video for you to watch.

LSP

Good Afternoon All,

On Sundays pre market I will be posting charts of interest. Each post will contain a chart to keep things clean and easier to respond to if anyone wants to ask questions or quote a post.

I'll start with Gold.

LSP

EURUSD - Take note the grey line is a monthly level and the red line is a weekly level. Also note that I am not suggesting price will just go to these levels but I believe these are the levels in play. I expect some small upside on EU before continuing lower. Lastly we are dealing with the higher time frames so they take many weeks and months to form.

LSP

GBYJPY - Monthly level and daily levels. I would like to see price run higher first before resuming lower. GJ has been a great study over the last year and a pair I often like to trade when things line up.

LSP

DXY - Please note I use the futures contract when analysing the dollar index so your charts may look different. The monthly of DXY has been showing some solid strength and I expect this to continue into September.

LSP

USDCAD - Keep an eye on the levels I have noted. I'm curious to see how price reacts after clearing the liquidity above.

LSP

My answer to your question:

Price has broken through a sell order block and now you wait to see if price retests the upper level of the order block and goes higher or breaks back under the order block to go lower.

Good Afternoon All,

Short video presentation attached.

LSP

was late to this thread and felt it would be pointless to comment on the DXY chart posted since i already know how it played out. I have to say that i have trouble deciding on the direction, where does liquidity lie? every time i ask myself this i second guess myself, i can not seem to pick a direction i go back and forth. the path of least resistance..my mind creates excuses for both directions even when price is moving in one direction i expect an OB or resistance to stop it and reverse it. Obviously a personal thing going on in my head like you said in the video, its the trader.

For example this weekly CADJPY chart i see a reversal going after the previous high, the below liquidity has been taken. what other pieces can i take to solidify this bias or how would you see this? is this just a retracement to go lower?

Good Evening All,

I've attached some charts of USDCAD showing the area I noted in a previous post. Keep an eye on the hourly going into tomorrow, I'd exec a drop lower to scoop up liquidity and rebalance before potentially moving higher. There is still an imbalance above on the higher time frames which could get balance this week due to Non Farm volatility.

LSP

Hi pzw0803 and thank you for posting your questions. I have recorded a personal response for you which I hope will help.

LSP

Thanks,i didn't expect a video response. Forgive me about the typo, i did mean CADCHF dont know why jpy was on my mind haha. The video is VERY helpful, its interesting how you said to focus on what price didn't do... im going to keep this all in mind when charting. I will refrain from thinking in a "bias", my mind is definitely the biggest obstacle right now. The way you took it one step at a time to explain what occur at each swing point was pretty eye opening, i need to go more in depth with my analysis it seems and take my time with it.
I do have other questions about your USDCAD way of thinking, do you plan on explaining more on that or have you done that in the patreon already? I will be joining that soon, thanks for the help!

By the way i don't really care for my user name in the video so if you want to change it for something that will help others and get you more views please do so, you are pretty good at teaching.

Hi pzw,

You're most welcome. As I said I hope it helps. I've found over the years most traders simply need an explanation based on their own personal way of learning and absorbing information. Also thanks for thinking of me regarding the name of the video. It's fine, it helps me keep a track of who I'm answering and as long as it helps I'm not worried about views. The video was for you anyway

Regarding USDCAD I have been monitoring it over the last month on Patreon with the traders over there and have gone in depth on all the why's. The issue I will have on the thread is respecting those that are part of Patreon but still adding value to those here on the forum so I will do my best to explain things clearly but I have to keep things fair as well.

LSP

Good Evening All,

I'm attaching an update on USDCAD and have noted on the 15 minute chart an area of interest. If you have some free time study this and see what you come up with.

LSP

Good Afternoon All,

I was thinking how best to serve the community and have decided to pick a pair we can all track.

This evening I will do a mark up of said pair and going forward at the end of each day I will post again.

This is one of the best excersises I can do to show you how price moves and how to track it to make informed logical trading decisions.

Ill be be in touch this evening.

LSP

Good Afternoon,

thank you for your explanation videos and insights.

If I can do a suggestion for a pair: I would prefer GBPUSD.

Hi miwok,

Thank you for your comments.

Unfortunately it won’t be any of the majors as I cover those on Patreon. Please don’t misunderstand I’m not pitching anything but I will be going in-depth on the pair I choose and have to be fair on those that pay the small fee for all the majors.

What I will be sharing will take some time as the weeks unfold but you’ll notice plenty of foundational basics that can be applied to any asset class.

My hope is that anyone following along will notice a few things and realise that not much is needed in the way of technicals but rather most of the work should be focused on the trader.

A focus that I feel very strongly about. Most of the work I do with traders has nothing to do with technical or fundemental analysis

LSP