The Equilibrium, a key to success!

GPBUSD breakout



Hello cedars,

Welcome to our blog and thank you for your kind compliment. Unfortunately I cannot see which breakout it is because I am not trading the GPBUSD.





First of all, we see that from 11:56 the price looks like it wants to go down. At 11:59 there is a Stopfishing, with the long traders stopped. In this moment sell market orders come in the market, which the big player intercepted via a buy limit order. Then the price was pushed up with market orders and the stops of the short traders (market buy) helped to push the price up. In order to move a price up, it is first necessary that sufficient sell limit orders are available. There are gaps in the upward movement of your chart, which indicates that no sell limit orders were available in this area. First the sell limit orders are eaten up and the price starts the next sell limit orders. If there are no sell limit orders at the next price level, the price level is skipped and a gap is created until if further sell limit orders are available at a higher price level. No purchases or sales can take place in these gaps because there is no liquidity. You can often not see that in the M1 chart. Gaps are created permanently in the market.

At that moment the buy limit orders move up, if there are prospective buyers. It is quite possible that the big player himself placed buy limit orders from 1.30600 in order to support his own price. Because if there was no liquidity, the price would go back completely. At 1.30850 there was either less liquidity or the big player did not use any further market orders. We see gaps again the first time we run down, so that there were not enough buyers with buy limit orders in this area.

Unfortunately, I cannot see at what time the Big Player bought Ask, because to make money he has to buy a certain number of Ask before the outbreak. If he had only pushed the price up without collecting Ask beforehand, he would probably have lost money. This means that the big player has already started collecting his ask from London open or earlier. For that, he should have known a few hours beforehand what would come out of the BOE press release. If the big player had been informed of the result a few minutes before the BOE press release, he probably wouldn't have had much time to collect enough Ask. I rather believe that the big player used the increased volatility to push up his previously collected ask. A very risky game, due to the lack of liquidity. With the right tools, you might be able, to determine where the exit of his position was.

It may also be quite possible that the big player already knew the result the day before. Although he could have prepared for it, he cannot predict how the market will respond. This means that he has to make the decision a few hours in advance whether to buy Ask or Bid. And if he don't have enough money, it can be a big risk. We can see that in many hedge funds that have perished in recent years. The fact is that the big players have better and faster information, like the retail traders, and whether it always helps them is a question that I cannot answer. I recommend to take a look at Stophunting a little, this could significantly increase your chances of winning. You can find the post here.

Key candles in Stophunting

I wish you continued success and I look forward if this blog helping you.

Greetings Michael

I respect your opinion but only agree with the part that you also agree with me that MM's have priviledge information before it is released to us.

About expensive platform, etc...

I could not disagree more.
It is not because the price, subscriptions, data provider to be expensive(I agree are not cheap). But the kind of views and looks that you can have it with order flow is the most close that you ever will have of big players at least on this days, the future ? Who knows.

If you base your learning only in the past ? How can you succeed in the present?

Only my opinion and thoughts.

Cumulative delta


Hello dear subscribers,

First of all, thank you for your opinions on the subject of economic and trade data. Each trader obtains different information in order to build his trade on it and creates his own setup from it. This setup is tailored to everyone and can rarely be used profitably by another trader. In Formula 1, a racing driver can only be successful with his personal setup because it is tailored to him. For this reason, every trader is right from his point of view if he is profitable with his setup. In this blog you will find different ideas in the forex and futures market to create an individual setup. Supply and demand, COT, currency strength, volume profile, footprint, ask and bid, volume, liquidity, delta, DOM, times and sales list, indicators and heat map are presented and analyzed. There are traders who are with futures data and other traders who are successful with pure forex data. It is tiring to discuss what is best for another because every retailer is different. Everyone is responsible for themselves in this market, but should always accept the opinion of other traders. Of course, you can express your opinion, but discussions usually don't lead to anything. This blog focuses in the current project No. 9 on the Stophunting with Forex data and afterwards in the Project No. 10 we will analyze the Stophunting with futures data. Those who feel like it are welcome to participate in this project. If you prefer another way, you will definitely find your home in the countless great and informative threads from FF, which will take you further or you can create your own thread.

In addition to our current project Stophunting, I am currently analyzing the different strategies of the big players for our project No.10. A very interesting area is the fact that the big players sometimes provide themselves with liquidity in order to acquire a large number of volumes. I will show some examples of this. In addition, I noticed that there is a cumulative delta in the area of future data, but no cumulative ask and bid. There is currently no indicator for this. My prop software only works with C #, and I'm curious to see if I can develop this indicator. In principle, this is not a correct indicator at all, since the volume and the price are an integral part of the real-time data of the exchange and, unlike indicators, do not have to be offset.

If I open a long position in EURUSD I buy the Euro (Ask), as soon as I get out of the position I sell the Euro (Bid). If I take a short position, I buy the dollar (bid), as soon as I get out I sell the dollar (ask). So Ask stands for buying euros or selling dollars, and Bid stands for buying dollars and selling euros. In the delta, the number of questions is first subtracted from the number of bids. This display can be set for a specific time unit or viewed cumulatively. If the accumulated delta suddenly falls in an upward trend, it means that more was traded on the bid. This is an indication that either traders have taken their profits with them or short traders have bought the dollar because they are hoping for a reset or a turnaround. Divergences are predominantly used in the Cumlative Delta. However, it is more interesting to see how the respective cumulative ask or cumulative bid relates to each other. This makes it even easier to analyze possible profit taking. In the cumulative delta, you can only see that the value falls. But if the cumulative ask continues to rise, this could be an indication that it is only profit-taking. This would allow a more efficient way of looking at things. However, it will take a while, but of course I will keep you up to date.

I wish you a successful trading week

best regards
Michael

Key candle Stophunting II


Hello dear subscribers,


Today I would like to take a closer look at the key candles that play a decisive role in stophunting.



We see an equilibrium just before Point A, and many traders thought that the price could continue to move upwards. Then at Point A there was an immediate downward movement. Few people expected this movement, so there was no reason for the big player to look for possible stops above point B. After that, the price went down and strong resistance developed at the low. There, many assumed that the price could now go up again. At Point C there was again a strong downward movement, which was another reason for the big players not to look for stops in the first half of this movement, so the upward trend ended at Point D. At Point E there was again a strong one Movement down, for which the big players again have no reason to look for stops above Point F. After that, a sideways market formed and the movement at Point G was very strong again. That was initially the reason why the upward trend ran to Point H. With the future data you can always see very well at the crucial points how many traders are stopped in the opposite trend.



The course of the last 24 hours shows some nice examples. At Point A, around 6 p.m. on Wednesday, there was a strong downward movement where many traders assumed the price would go up again. For this reason, the course at point G and I was not pushed over point A because there were not many stops to be expected there. After an equilibrium, there was a strong downward movement at point B. No further stops were needed via Point D because they were needed for the upward trend. Point C and E once again formed a strong resistance zone that could not be broken. Then the course went up again. At Point F we came to the resistance zone of the equilibrium at Point B. Many hoped for a further downward trend. A strong upward movement broke through this resistance zone and a new key candle was formed. There was a stronger return at the high of point G, which did not have to be overcome with point I, since there were no further decisive stops there. Then the course ran to Point J. Points C, E and J formed a strong resistance zone, where many suspected that the course could go up again. He did that for a short moment, but then there was a strong downward movement and a new key candle was formed. With the upward movement from point L to point M, the big players did not have to look for any further stops above point K because few traders were involved in this downward movement. In the further downward movement there was another key candle at Point P, which was not overcome in the subsequent upward trend.

A key candle doesn't always have to be a strong move, but it should unexpectedly run in an opposite direction that most merchants didn't expect. If this movement then breaks through a certain important resistance zone, one could mark it as a key candle. To train these key candles, I recommend working with an M5 or M15 chart. First choose a currency pair whose exchange rate you do not know and go back in time. You can now draw your key candles using HH and LL as well as typical resistance zones. If you then scroll forward, you can immediately see whether you were right or not. If you were wrong, try to find out why they couldn't see it or switch to a different unit of time. Of course, this will not always work, but it is a small support that can often help you. You should note that the resistance zones are usually created by the big players and you should always ask yourself what the big players are trying to achieve. The moment you think like the big players, you are a decisive step ahead. Of course you can not get the crucial information in the Forex market, we will deal with this in detail in our new project number 10.

I wish you a successful trading day tomorrow

best regards
Michael

Crucial zones in the EURUSD


Hello dear subscribers,

I would like to go into the open gap that I have spoken of several times.



On April 23, 2017, a gap of almost 180 pip was created over the weekend. Part of the gap was closed at 85 pip over the next three days. The price then went up from 1.08205 to 1.255. Overall, there is still an open gap of around 90 pip in the market. Since around 95% of all gaps will closed, we have to deal with whether this gap is also closed. If so, the price should be below 1.07299. That is still about 110 pip away from today's open.



On February 10, 2020 the price reached the end of the gap and broke it briefly on February 11, 2020. After all, the price went down to 1.08265 today, so it hasn't touched the open gap yet, the zone is 1.08205. It will be interesting to see how the course reacts when this zone is overcome. Of course, I cannot predict whether the gap will eventually be closed, it is exciting to only pay attention to these zones and to know them.

I wish you an success trading day and good luck.

best regards
Michael

Open gap in Euro FX


Hello dear traders,

on Friday I briefly addressed the topic of "open gap" in the Forex from April 2017. The price went up again on Friday, but it only missed the lowest low by 1.5 pip at the close of trading. There are still missing only 7 pip to reach the open gap.

Things look a little different in the Future Euro FX.



On Friday, the price was already twice in the open gap at the start of the exchange (Point A) and the end of the exchange (Point D). First of all, this is very interesting information for us. The difference to the forex market arises from the swaps. The price rose from point A later in the day, accepting the open gap twice as a kind of resistance. On the 500 Delta Chart you can see the respective delta of the limit orders in the individual candles. At Point B a delta of 1,125 lots was created in the area of the sell limit orders around 15:00 CET. In this area, 1,125 lots more sell limit orders were triggered than buy limit orders. Then the price went down. In the area of Point C, a delta of 2,079 sell limit orders was created this time. The course tried to break through this area again strongly, but was rejected downwards. Point D has already placed over 1,200 lots in the form of buy limit orders, which in part could mean an exit from the dollar. Then the course went to Point E. The total delta (ask bid) is also declining, as is the open interest. It seems as if there are still a few 1000 lots open in the sell limit orders area, which would speak for a further price trend downwards. If more strong sell orders come in at the start of the exchange tonight, the buy limits could be broken and the price could continue to run into the open gap. However, I can not predict whether these open sell limit orders will be resolved in the course of Sunday / Monday, which could then lead to a new rise. So it remains exciting and maybe next Monday will bring us further important information.

I wish you a successful Monday

best regards
Michael

Good morning Michael.

Incredible what a valuable informations you are posting in your thread.

That is 100% what I was missing in my trading to bring it to a more professional stage.


Your screenshots already posted in August last year are exactly what I m looking for in naked m1 charts.

https://www.forexfactory.com/attachm...5&d=1565354410

https://www.forexfactory.com/attachm...6&d=1565354410

https://www.forexfactory.com/attachm...7&d=1565354411


It is really precise described.
Currently I m reading it the second or third time and find always something new, what I overread before.

Basicly we are all small kids, playing in marketmakers front yards sandbox and marketmaker gives us cookies and tee to keep us playing.

Your postings included the displaying of the software are a incredible piece of work.
I was searching for something that displays a "wash out/clearing the books" since last summer.

Meanwhile I downloaded the Advances Times And Sales software and watch the vids how to get started.

This thread leads to the basic, what moves the market (Orders) and make it visible.

The context must every trader find/have for itself.
Congrats, never seen such a information displayed on a forum.

Did you try other instruments like AU EG EJ or UJ as well?

Guido

Efficient currency pair


[quote=Sesamstrasse;12758114]{quote} Good morning Michael. Incredible what a valuable informations you are posting in your thread.


Hello Guido,

Thank you for the great compliment, I am very happy that the informations help you. I have been dealing intensively with my prop software and the stock exchange data for 1 year now and have come across very interesting aspects that we will discuss in more detail in our next project no.10. The big players work with different strategies, but with the right presentation of the stock market data, they become more and more predictable for me. The problem is that many traders deal with the volume profile, footprint charts and market orders, but one cannot identify the big players with that. So I think the next project will be one of the most important projects on this blog.

I find your question about the currency pairs very interesting, so I created a few slides for you. Basically, I only trade the EURUSD in the Forex market because it contains the greatest liquidity and is over 100 times larger than the Euro FX in the future market. A high level of liquidity in a currency pair often means a slightly lower volatility, but also a high level of stability in the event of a drawdown. First, let's take a look at how I determined my optimal currency pair.

Explanation: I have taken over the following division of the currency pairs major / minor from my broker. Every broker seems to classify this differently, because for me the AUSUSD is more of a major than a minor. For this reason, we should not bother about it.



Under Point A, I listed the main currency pairs and entered the average spread in all volatility phases that my broker calculated. In addition, I determined the average ATR of the last 3000 candles in the M1. This gives the average seconds it takes for a trade to run into profit. In the case of the EURUSD, this is exactly 25 seconds. The CADCHF currency pair, which was the most ineffective for me, took 108 seconds, over eight times as long as the EURUSD, to run into profit.

At Point B I calculated the most important minors. The GBPAUD takes an average of 28.5 seconds to run into profit and could well keep up with the EURUSD. The most ineffective currency pair AUDNZD even needs 138.5 seconds to run into profit.

At Point C I looked at how much loss the major currency pairs make within 1 minute. Here, too, the EURUSD is at the forefront. The GBPCAD loses four times as much as the EURUSD in 1 minute.

At Point D we see that the AUDUSD can certainly keep up with the EURUSD. The GBPNZD loses 9.2 pip in 1 minute, almost six times more than the AUDUSD.



This resulted in a kind of ranking list, at Point A I determined how long a currency pair needed to run into profit, at Point B how high the losses were after 1 minute. The EURUSD and AUDUSD perform best here.



Now I have created a ranking of all currency pairs, looking at how high the losses and profits are within 3 minutes. This gave rise to a probability of winning. Let's take a closer look at the EURUSD. In 3 minutes you lose about 4.1 pip in EURUSD. This is made up of the spread of 0.5 pip and an ATR of 1.2 pip per minute. In the case of a win, you get 3 × 1.2 pip / minute and you have to deduct the spread from it. The result is 3.1 pip. To trade efficiently, I need at least a 56.9% chance of winning. In the case of the AUDNZD, you need a probability of winning 88.5% to act profitably, that is almost impossible.

At first glance, the first three currency pairs EURUSD, GBPAUD and AUDUSD seem lucrative. The problem is that GBPAUD is a minor currency that sometimes has very high drowdowns. If you can live with it, the GBPAUD is a good choice because you can earn three times more in the same time as in the EURUSD. For this reason, alongside the EURUSD, the GBPAUD would be the only alternative. What speaks against it is the lower liquidity in GBPAUD, which leads to larger drowdowns and uncontrolled swings. That's why the EURUSD is one of the safest currencies in the exchange market for me.



Here I have now compared the most efficient and the worst currency pair. There are 20 trades in 3 minutes with a 50% chance of winning. In EURUSD you will lose -10 pip, while with AUDNZD you will lose -60 pip. That is a difference of -50 pip and a loss six times as high. So we see how important it is to find the right currency pair. The numbers and rankings of course change depending on volatility and spread. Therefore, I recommend every trader an individual calculation.

Compared to many currency pairs, the EURUSD is a rather slower contemporary, but it is most likely to make the most efficient gains. Of course, sometimes you want more movement in EURUSD, which is why I prefer the downward trends because they run 30-40% faster than the upward trends. Overall, I have found my optimal currency with the EURUSD and can set up my eight screens exclusively for this currency pair. This means I have all the important information at a glance without having to switch the view over time and can only concentrate on the market and my trade. I would never trade with a cell phone because I simply lack the crucial information from the stock market.

I hope that I was able to answer your question in detail and look forward to a great cooperation in this blog.

best regards
Michael

Ha, ha, that's curious. I have always been fond of EurUsd, while a trading friend of mine likes to trade GbpAud. For my friend EurUsd is 'boring', in fact he means that GbpAud is much more volatile. I have also tried GbpAud, and also GbpJpy, GbpUsd and EurJpy, but after some time I just came back to EurUsd, which for me was the most reliable, now I even know why, thanks to your interesting currency overview.

Today, it was President's Day, so I thought there wouldn't be much movement in EurUsd, but when you trade with a 12 tick, a 48 tick and a 64 tickchart, there is always something going on, ha ha. I'm still reading this thread and I'm now at the section where different trader styles are compared. So I'm a scalper, but there I read about a seconds scalper, scalping with 10 lots ...So, I thought, why not on my demo account, let's give it a try. At first, I fell from my chair when I saw the commission : 55 Euro, so my account was minus 55 Euro when price was at 1.08343, my opening price. The course had gone down for quite some time and my stoch was at the bottem and price was hitting my self drawn zones, so I went for a buy, of course completely against the 'trend', now what is a trend, ha ha, well when Euro is at 0 at my currency meter and Usd is over 8 levels there. Initially, price went a bit with the 'trend' so down (minus 90 on my account), but then it started to go up. I closed the trade very fast when price reached 1.08356. It took 7.45 minutes, that's pretty fast, profit 119.97 minus 55 = 64,97 net profit. It was still without stop loss, so now I just have to learn again to use stop loss, but for that I must become better in drawing my zones...BTW, I was also lucky, no stop loss with 10 lots is of course extremely dangerous, on my live account the maximum lot I have ever used is only 1.

Anyway, the 48 tickchart has become my favorite !

Best regards from Wulong

Currency converter

[quote=Wulong;12759242]Ha, ha, that's curious. I have always been fond of EurUsd, while a trading friend of mine likes to trade GbpAud. For my friend EurUsd is 'boring', in fact he means that GbpAud is much more volatile.

Hello Wulong,

with the currency converter you can now calculate your currency pairs optimally, I hope that helps you.

Greetings Michael

Ok, thanks Michael, I'll give it a try.

Ha, ha, this week I have some time and today I wanted to watch what would happen when the 'big' economic news would be released regarding the EurUsd course (EURZEW Survey - Economic Sentiment (Feb) Germany). According to my indicators, I thought the course would first go down when the news was released at 11 hours. So I did a fast trade down on my demo. At the vertical line at my chart, you see a big magenta down candle. Most traders believed that EurUsd would continue to go down, but price jumped back up and when it was at about the same level as the big magenta down candle at 11 hours, it plunged down again and back up and down like a yoyo. Ha, some stophunting was definitely going on here ! And the traders who believed that the course would go down (maybe it will), were certainly stopped out when a couple of blue strong candles broke my zones I had drawn, price went in a short time from 1.08230 to 1.08365 ! High frequency traders or big players, whatever … I mostly look at Fx Street at their economic calender and just when this news was released a popup on the calender said : 'Trade now' . The big question is, in what direction should you trade ???? In this case the news is bad, so do the contrary of what 'normal' traders do, ha ha. Right now the price is in a range, but still higher than before the 'bad' news ...

And sorry for my messy chart.

Best regards,
Wulong

Bionic currency calculator


Hello dear subscribers,


In my last post I showed you how to calculate an efficient currency pair to get the best chance of winning.

Efficient currency pair


Today I would like to provide you with a calculator with which you can easily carry out this evaluation in excel.






You must first fill in the color-coded fields with your individual entries.

Point A
The average spread that your broker requests for the respective currency pair is entered here. If your broker doesn't give you an average spread, try to calculate an average yourself.

Point B
The average ATR in M1 is calculated here. I provide you with an indicator for this. There you can enter the number of candles to calculate the ATR. Please note that the ATR is displayed in Pip / 10. In the example, 10.5 points = 1.05 pip.

Point C
Here you enter the number of minutes a trade should run. Under "Trades" you enter the number of trades to be calculated and under "win" how many of these calculated trades run into profit. That´s all.

Point D and E
The spread and the ATR are displayed once more again.

Point F
Here, the average ATR is used to calculate how many seconds it takes a trade to run into profit.

Point G
Here it is calculated how high the loss is within 3 minutes.

Point H
Here it is calculated how high the profit is in 3 minutes.

Point I
The probability of winning relates to a loss and a profit.

Point J
In this example, five wins are calculated over 3 minutes each, the setting can be changed via point C.

Point K
In this example, five losers are calculated over 3 minutes each. You can change the setting via Point C.

Point L
Here you can see the overall result of Point J and K, which is shown in Pip.

Of course, this representation is only a rough calculation and should initially only give you an overview. However, this will enable you to find your optimal currency pair and possibly optimize your profits in the future.

I wish you much success with it to increase your probability of winning even more successfully in the future.

Best regards
Michael

Attached File(s)

atr_value_indicator.ex4   10 KB | 1,198 downloads

Attached File(s)

bionic currency calculator.xlsx   21 KB | 895 downloads

Hello Bionics, thank you for indicator.

Indicator has to calculate data for colour-coded cells in table...it should not be anything left for user to enter.
---just my opinion----

Bionic currency calculator


Hello YYZ,

I absolutely agree with you, but I wanted to give my subscribers the opportunity to enter and calculate indexes, precious metals or raw materials. If someone deletes the formulas, they can simply download the file again. It was primarily about a trader being able to find his optimal currency pair.

I hope that my tool will help you

Lovely wishes
Michael

On the trail of the big players


Hello dear subscribers,


To prepare for our new project No. 10, I would like to show an interesting example today.



last Sunday I submitted and wrote an analysis of the EURUSD:

It seems as if there are still a few 1000 lots left in the area of limit sales, which would indicate a further price trend downwards.

Open gap in Euro FX

Of course, I cannot make any specific trend or prognosis forecasts because the current market trend is crucial. The fact is that the big players use iceberg orders to collect, which are not visible in the form of limit orders or are very difficult to identify. These collection campaigns often take a few days, so time is always on our side.

Now let's take a look at what happened afterwards.



Let's start at point A. On February 7, 2020, a few 1000 lot sell limit orders were already collected in the zone shown. On Monday, February 10, 2020, the price was pushed up again and further sell limit orders were collected. At price level A, a total of 5,259 lots was created in the area of sell limit orders. Then the course was pushed into my drawn point B level. In order to push the price down further, further sell limit orders had to be collected. We can see very nicely that on Tuesday February 11th 2020 additional sell limit orders were collected. On Wednesday, February 12, 2020, further sell limit orders in this price level were collected, in total there were over 10,111 lots in the delta. The price was then pushed into price level F on Wednesday and Thursday. We can see that further sell limit orders started to collected again on Thursday at the low. 2079 lots was reached on Friday at price level F. In addition, the course at Point D managed to walk a bit into the open gap. Monday was a typical gathering day, at Point E a delta of 4,120 sell limit orders was reached. In total, a sell limit delta of 7,662 lots was formed at price level F. Tuesday started with a small positive gap, but it was no longer able to enter price level F. After that, the course ran into the open gap to Point G. The stronger green lines, down the course, are largely exits from the dollar. In order to push the price down further, further sell limit orders would have to be collected, so we should take a closer look today. Another equilibrium could possibly be formed to collect further sell limits and then drive the price deeper into the open gap. In the chart we can also see that there were some exits before Point F and a larger exits before Point G. However, there should still be many 1000 sell limits to push the price further down. We can tell from the limit orders, whether the price is now recovering or an equilibrium is forming. Therefore, it is always crucial to pay attention to the current market situation.

Yesterday around 4:00 p.m. an interesting situation arose, that I would like to show you.



At Point A around 11:00 a.m. the EURUSD course ran for the first time in the open gap, for testing. It was a crucial point for me to wait for a good short trade. When the course had a strong breakout at around 11:30 a.m., it was clear to me that no stops could be expected above this zone. There I looked for a suitable entry. Now the price went into the open gap to point C. Since I had no reference value in the past, I could not take the trade to the low. Then the course went up again to Point D and left the open gap. At Point D an interesting situation arose that we want to take a closer look at.



At Point A, we can see in the time and sales list that strong cumulative and non-cumulative sell market orders came into the market. At Point B we see that the buy market orders in the cumulative and non-cumulative areas were very sparse. Suddenly we saw a strong buy limit order of 474 lots in the DOM. This order was about five times bigger, as the other limit orders.



In the overview, it initially looked like as follows. At point A, we can first see, that highly accumulated and non-accumulated market bids entered the market. Immediately afterwards, strong market ask came into the market, which was triggered by the stops of the short traders. At Point B we see that the big players placed strong sell limit orders in the market to intercept the price upwards. The price was then pushed down, triggering the long traders' stops again. Then suddenly a strong accumulated buy market order came on the market. For many traders, it looked like the market was going Long. In fact, a big player provided himself liquidity by placing a strong buy market order on the market and absorbing it with a sell limit order. The big player also placed a large buy limit order of 472 lots on the market. All traders have now assumed that the market is clearly going up. After all, a large buy market order and a large buy limit order in the DOM cannot be wrong. The large buy limit order was finally deleted and the buy market folder quickly dissolved when the price went down. This gave the big player enough liquidity to push the price down again by 40 pip. Because many traders enteredlong trades, you indirectly helped the big player push the price down further after their stops were triggered.



If we look at the pure headmap of this situation, we can see relatively easily that we had a much higher supply than a demand in the limit area. This view can also help us in many cases.



At Point A we can see yesterday's course down again. What is striking is that at point B strong sell limit orders have already come onto the market. Today the price went up and again formed a stronger sell limit delta of 2.684 lots at point C. I could imagine that the price would continue to run into the open gap, but I believe that the big players could still collect some sell limits. Therefore, we should keep an eye on this zone and see how the delta develops in the area of the sell limits. If a strong zone develops, we will see that the price always moves around this zone to collect further sell limits. As soon as the price goes down and accepts this strong sell limit delta zone as resistance, this could be the start of another breakout.

We will talk about these limit orders in detail in our next project, because the limit orders are more important to me than the market orders.

I wish you a successful trading day

best regards
Michael

Hi, Bionics Could share the screenshot/picture of volumn bar of any financial product AND setting=1 volumn? Tks

1 volume chart


Hello extjsjquery,

First of all, I hope I understand your question correctly. With my software can display almost all different charts.



I once created for you (Point A) a 1 volume chart in Euro FX. The problem is, that the chart can only represent 1 volume, if only 1 volume comes in. The exact definition of a volume is the result of Bid plus Ask. Not to be confused with the delta volume that means ask minus bid. At Point B you can see the smart tape, there you can see all non-cumulative market sell orders, filtered from minimum 20 lots. The cumulated market sell orders are listed next to it. Today at 08:21 CET (Point C) a market sell order of 120 lots came into the market, at 10:12 (Point D) a market sell order of 80 lots came into the market. These non-cumulative orders are also shown in a 1 volume chart with 120 lots or 80 lots. So it would make no sense to use a 1 volume chart since most orders are larger than 1 lot.

A 1-tick chart is much more efficient, because 1 tick means a trading transaction. This allows you to quickly find out how much solder an individual trading participant has given up. Under Point E you can see the different ways to create a chart. The corresponding numbers can be changed from 1 to infinity. The charts can be displayed for all available futures. The volume in the future is not comparable to the volume in forex, since the volume in forex is generated from the ticks, while the future volume is derived from bid and ask.

On the topic of volume, you will find very detailed articles in this blog from August 15, 2019, which will certainly help you.

How important is the volume?

I hope I could help you a little and wish you a successful trading day.

best regards
Michael

be very grateful to your reply. Could you enlarge the picture since I did not see the detailed part of the bar clearely. Or you can point which chart is the 1 volumn chart that I upload below,chart a or chart b for 1 volumn chart?

Breakout in EURUSD?


Hello dear subscribers,


A brief summary of the current status in EURUSD.



On Tuesday at Point A, the price went down and started to collect sell limit orders again. Yesterday (Point B) was a typical collecting Day for me, where stronger sell limit orders were activated again in the rising price. Today at Point C, collecting continued in the area of sell limit orders. Overall, a sell limit delta of approximately 9,000 lots is likely to have been reached in four key areas. In my view, that would be enough to be able to profitably reach the end of the gap. However, I believe that the big players will continue to collect a little bit and at the same time stop the short traders. Increased volatility is expected in 1/2 hour, which would be a nice opportunity to throw the short traders out of the market and then possibly push the price down. Whether this will already be the case today depends essentially on what is still collected in the area of sell limit orders and whether the stops (8-12 pip above the daily open) are still being picked up. Nevertheless, I could imagine that the collection campaign should be completed by tomorrow at the latest and that the course could run down again. It is now crucial to pay attention to exactly these zones and to observe how many sell limit orders can still be collected in the next hour. If the price breaks up first, you could consider the upper sell limit zone as resistance. I'm curious to see how the market behaves today. Most of the time it works differently, than we initially suspect.

I keep my fingers crossed for everyone and wish you a successful trading day

best regards
Michael

Prop software

Hello extjsjquery,

The chart is not an MT4 chart, but a prop software that is supported by a stock market data feed from CQG.

best regards

Michael