Trading Institutional Order Flow | Page 444 | 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

  • #8,861
  • Sep 15, 2020 8:12pm Sep 15, 2020 8:12pm
Quoting phinny
Thanks so much to you all for the advice i have taken all into account, So i was thinking I switched up my timeframes a little bit i trade confirmation entry method on 15M off 4Hr Levels i wanted to know if i would have to pay attention to daily timeframe
Your Higher Timeframe is the 4H so you shouldn't really have to worry too much about the daily as far as really analyzing it for Trend and Momentum and all of that, BUT its always a good idea to see where you are on the Daily just to see how close you're getting to a Daily zone or if you're sitting inside of one.

It really just helps to give you peace of mind to know where you are on the bigger timeframes.
  • #8,862
  • Sep 15, 2020 8:21pm Sep 15, 2020 8:21pm
in post 8852 (and other posts), the chart candlesticks have 3 colours. what is the significance of these colours?
  • #8,863
  • Sep 15, 2020 10:10pm Sep 15, 2020 10:10pm
Quoting cinnamon
in post 8852 (and other posts), the chart candlesticks have 3 colours. what is the significance of these colours?
The 3rd color (Yellow, if I remember correctly) shows 50% candles or "basing" candles to help identify POTENTIAL Supply/Demand Zones quickly. You definitely don't need the indicator to identify the zones.

In fact, until you can identify zones correctly it can become a hinderance to your development to rely on that indicator to base your zones off of.
  • #8,864
  • Sep 16, 2020 7:41am Sep 16, 2020 7:41am
Hello everyone I just have a quick question regarding CP patterns do they have to take out an opposing zone to be valid or they are valid automatically? Because sometimes I have problems validating CP’s when they are taken out be proper s and d zone
  • #8,865
  • Sep 16, 2020 10:09am Sep 16, 2020 10:09am
Quoting Masterquis
{quote} Your Higher Timeframe is the 4H so you shouldn't really have to worry too much about the daily as far as really analyzing it for Trend and Momentum and all of that, BUT its always a good idea to see where you are on the Daily just to see how close you're getting to a Daily zone or if you're sitting inside of one. It really just helps to give you peace of mind to know where you are on the bigger timeframes.
Noted This is a big help
I Learn so i can Earn
  • #8,866
  • Edited 11:01am Sep 16, 2020 10:45am | Edited 11:01am
Quoting Royal146
{quote} What makes you think we don't go deep into zone to find the start of the move? All the point of top down analysis is to refine your entry from higher timeframe and lower your risk! No offense but you're keep saying go to price structure! What do you mean exactly? When I find my levels in curve ( Daily), If there was an opportunity and level was qualified I would find entry in H1! Do you mean I should go deeper in zone, like 15m or 5m? Do you agree a supply and demand zone is created when they remove valid(opposing zone)? Or breaking of the...
there's 4 possible ways to enter a trade when it comes to finding a supply or demand levels.

down trend
1 RBD Rally base (supply) drop - this you will find in a down trend and normally at the top of a move going down.
2 DBD Drop base (supply) drop - this you would normally find in the middle of a move going down - in a down trend.

uptrend
3 DBR Drop base (demand) rally - this you would normally find in an uptrend at the bottom of the move.
4 RBR rally base (demand) rally - you would normally find this in the middle of a move such as a flag.

this is where you would find supply and demand levels during moves up or down. its the criteria of getting into a move according to supply and demand rules like most people who trade supply and demand.

together with engulfing increases your chances of success.

dollar index chart. RBD (SUPPLY) has been consumed, so now we have a RBR currently where price is at. i thinkn we go higher for dollar. but that me looking at this one time frame

ill leave it at that.

take care.
Attached Image (click to enlarge)
Click to Enlarge Name: usd index.png Size: 58 KB
Indicators only Indicate, Price action dictates.
  • #8,867
  • Sep 17, 2020 12:01pm Sep 17, 2020 12:01pm
EURGBP 1H buy at demand. let it play out.
Attached Image (click to enlarge)
Click to Enlarge Name: EURGBP (08-11-2020 1632).png Size: 22 KB
Indicators only Indicate, Price action dictates.
  • #8,868
  • Sep 17, 2020 12:14pm Sep 17, 2020 12:14pm
Quoting joe123
{quote} there's 4 possible ways to enter a trade when it comes to finding a supply or demand levels. down trend 1 RBD Rally base (supply) drop - this you will find in a down trend and normally at the top of a move going down. 2 DBD Drop base (supply) drop - this you would normally find in the middle of a move going down - in a down trend. uptrend 3 DBR Drop base (demand) rally - this you would normally find in an uptrend at the bottom of the move. 4 RBR rally base (demand) rally - you would normally find this in the middle of a move such as a flag....
Hello joe123

thank you for your contribution to the conversation.

If i may, in putting price lines around the zones, within the methodology, it is important to capture the entire price ranges and include the wicks because as you know, those are prices the market traded to at some point.

For example in RBRs and DBRs, the lower line should be at the lowest price in the base.
For DBDs and RBDs, the line furthest from price should be at the highest price in the base.

Supply and Demand traders have more flexibility and differences at times in terms of where each trader places the price line closest to current price
whereas the price line furthest from price is pretty much fixed as described above

best wishes
Be careful what you think because your thoughts run your life..Solomon
  • #8,869
  • Sep 18, 2020 7:19am Sep 18, 2020 7:19am
Quoting Akt
{quote} Hello joe123 thank you for your contribution to the conversation. If i may, in putting price lines around the zones, within the methodology, it is important to capture the entire price ranges and include the wicks because as you know, those are prices the market traded to at some point. For example in RBRs and DBRs, the lower line should be at the lowest price in the base. For DBDs and RBDs, the line furthest from price should be at the highest price in the base. Supply and Demand traders have more flexibility and differences at times in...
Hey Akt

I hear what you are saying, but i don't normally include the wicks, never have.

for me wicks are just noise, and prefer to look at price action with the body of the candle.
Indicators only Indicate, Price action dictates.
  • #8,870
  • Sep 18, 2020 9:10am Sep 18, 2020 9:10am
little late but sold GBPUSD 15 min.

nice supply
Attached Image (click to enlarge)
Click to Enlarge Name: EURGBP (08-26-2020 1242).png Size: 30 KB
Indicators only Indicate, Price action dictates.
  • #8,871
  • Sep 20, 2020 6:44am Sep 20, 2020 6:44am
Quoting joe123
{quote} there's 4 possible ways to enter a trade when it comes to finding a supply or demand levels. down trend 1 RBD Rally base (supply) drop - this you will find in a down trend and normally at the top of a move going down. 2 DBD Drop base (supply) drop - this you would normally find in the middle of a move going down - in a down trend. uptrend 3 DBR Drop base (demand) rally - this you would normally find in an uptrend at the bottom of the move. 4 RBR rally base (demand) rally - you would normally find this in the middle of a move such as a flag....
This is clearly RTM materials
  • #8,872
  • Sep 21, 2020 5:00am Sep 21, 2020 5:00am
Quoting MarkStep
{quote} This is clearly RTM materials
not sure what you mean by rtm
Indicators only Indicate, Price action dictates.
  • #8,873
  • Sep 21, 2020 11:52pm Sep 21, 2020 11:52pm
Hello everyone

Supply and Demand Market Report

best wishes

Inserted Video
Be careful what you think because your thoughts run your life..Solomon
  • #8,874
  • Sep 22, 2020 2:30am Sep 22, 2020 2:30am
Morning, AKT, thanks for the great thread, Being lurking in the background, studying through the pages (only on 95 now) and can already see the difference in my trading. I just have a few questions, i'm not quite understanding at the moment. If you don't mind assisting.

Regarding a violation and break, would a violation be considered a wick or candle close in the zone? but doesn't necessarily remove the zone its violating? as it hasn't closed beyond the zone? and then in return a close or move straight through the zone would be a break and therefore removal of zone being broken?

Then with regards to the break/violation and removal of the zone in question, the zone being broken cant be used again as the opposite as a candle is going through it? and zones cant go through candles? The zone becomes a SZ and the zone above it by inheritance?

The last question is regarding my Trend momentum line.. is the black line correct or is the blue line? or both are but the black uses the last to highs? ( im just not sure if the 2nd high on the black line which is caused from the Base zone. considered a pivot point?

Not sure if i'm over thinking this.

Thanks again for the thread! being a massive help in my trading!

I hope i've added the images correctly
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Image.png Size: 127 KB
Click to Enlarge Name: Screenshot (84).png Size: 58 KB
  • #8,875
  • Sep 22, 2020 3:35am Sep 22, 2020 3:35am
Hello Everyone,
I have been having a little bit of internal conflict
When taking confirmation entries how do we know that price would respect that LTF zone
Do you set pending orders or look for candlestick pattern before entering the trade??
I Learn so i can Earn
  • #8,876
  • Edited 1:32pm Sep 22, 2020 1:20pm | Edited 1:32pm
Quoting SnDnewbie
Morning, AKT, thanks for the great thread, Being lurking in the background, studying through the pages (only on 95 now) and can already see the difference in my trading. I just have a few questions, i'm not quite understanding at the moment. If you don't mind assisting. Regarding a violation and break, would a violation be considered a wick or candle close in the zone? but doesn't necessarily remove the zone its violating? as it hasn't closed beyond the zone? and then in return a close or move straight through the zone would be a break and therefore...
Good evening SnDnewbie,
welcome to TIOF, please allow me to add a couple of granules to your images. Akt will no doubt respond, and look forward to him so doing.
I have included both your images, to help answer your questions, please excuse my scribbling all over them, I'm not good at this.

Per the 1st image:-
#1 - The magenta line I have drawn represents your momentum trend-line (MTL)
#2 - The OHLC (Open, High, Low, Close) candle that confirmed the break of the MTL #1, being the first candle that opened and closed away from the MTL without touching it.
#3 - The DZ responsible for the break of the MTL
#4 - The SZ that removed the DZ (#3), because it managed to pierce right through the DZ. A zone, be it demand or supply, is removed, once price has moved through the zone, be it by as little as 1 pip. This can be seen happen as the low at point B made a lower low than at point A. A point to mention here, would be that this SZ would be regarded as not tradable, as it failed to stay away from the zone in question, for at least one candle, after the initial move away.

The blue trend-line (MTL) drawn would initially be correct, but once price managed to make a lower low at point D, the black trend-line (MTL) would be the correct.
#5 - The green candle indicated, would have confirmed the break of both the black and the blue MTL, a full OHLC candle away from the zone.

Per the 2nd image:-
As per the image, this would not constitute a break of the demand zone in question. Had the wick carried on further down as indicated by the blue lie and pierced the lower line marked D, this would then be considered a removal of the demand zone.
For info :-
P = Proximal line, which is always the line closest to current price (easily remembered as in close proximity)
D = Distal lin, the line which is furthest away from current price, ( related to distance)

I hope this has helped a bit.
Regards
agh
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Notes per Post #8874-1.PNG Size: 158 KB
Click to Enlarge Name: Notes per Post #8874-2.PNG Size: 119 KB
  • #8,877
  • Sep 22, 2020 1:25pm Sep 22, 2020 1:25pm
Quoting SnDnewbie
Morning, AKT, thanks for the great thread, Being lurking in the background, studying through the pages (only on 95 now) and can already see the difference in my trading. I just have a few questions, i'm not quite understanding at the moment. If you don't mind assisting. Regarding a violation and break, would a violation be considered a wick or candle close in the zone? but doesn't necessarily remove the zone its violating? as it hasn't closed beyond the zone? and then in return a close or move straight through the zone would be a break and therefore...
Hello SnDnewbie
Welcome Welcome to T.I.O.F and thank you for sharing your queries as i am sure there are many who have the same questions

I have attached some of my thoughts below

best wishes
Attached Image (click to enlarge)
Click to Enlarge Name: euraud ff.PNG Size: 47 KB
Attached Image (click to enlarge)
Click to Enlarge Name: usnass100.PNG Size: 68 KB
Be careful what you think because your thoughts run your life..Solomon
  • #8,878
  • Sep 22, 2020 2:34pm Sep 22, 2020 2:34pm
Quoting phinny
Hello Everyone, I have been having a little bit of internal conflict When taking confirmation entries how do we know that price would respect that LTF zone Do you set pending orders or look for candlestick pattern before entering the trade??
Hi.

We look for engulfing candles by a supply zone for instance and with it, we look for bearish engulfing candles as a reaction of the supply zone which would be confirmation of a short.

EURUSD 15min chart is a nice supply zone with strong move away from the base. A test of this level 1.1730 is aggressive way of trading. If we wait for bearish engulfing 'as a reaction' to this level, that would be a confirmation of a short trade.

Hope I made my self clear.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot_2020-09-22-20-26-20-893.jpeg Size: 125 KB
Indicators only Indicate, Price action dictates.
  • #8,879
  • Sep 22, 2020 4:40pm Sep 22, 2020 4:40pm
Quoting joe123
{quote} Hi. We look for engulfing candles by a supply zone for instance and with it, we look for bearish engulfing candles as a reaction of the supply zone which would be confirmation of a short. EURUSD 15min chart is a nice supply zone with strong move away from the base. A test of this level 1.1730 is aggressive way of trading. If we wait for bearish engulfing 'as a reaction' to this level, that would be a confirmation of a short trade. Hope I made my self clear. {image}

Thanks for the pointer sir
I Learn so i can Earn
  • #8,880
  • Sep 22, 2020 11:23pm Sep 22, 2020 11:23pm
@agh @akt

Thank you for the replies. i can see where i was going wrong. Also i need to ensure the movement away from a zone needs to sufficient enough, to actually assume there was an imbalance, and not just general price moments of sellers and buyers.

thanks!
2 traders viewing now