Order Flow - Achieving the mindset

no

I did and it was not very helpful. The guy is trying to sell his service with these videos but by the looks of the preview videos I wouldn't sign up for his service even if it was for free.

I made a thread last month outlining a trade with an Order Flow mindset for traders starting out; using the Nzd/Usd:
http://www.forexfactory.com/showthread.php?t=437966

I agree, the video does not tell anything about order flow. Perhaps if someone subscribe, and after... but from this video no helpfull info..

is there any book or anything which explains the very basics of the mechanics of the market?
I am reading material about order flow and also the book from Daemon Goldsmith but when they start to explain the differnce between limit order and stop order I always get lost because noone explain them in full dept and examples.

i always struggle to fully understNd the mechanics as evrywhere this understanding is gven for granted.

but for instance whi is behind the bid who behind the ask? when I make a market order to sell do I become an ask? or I jut consume one bid?


in short is there a book for dummies for this basic concpets that exlains them in depth but throught basic concet for the newbie?

thanks!

Trading and Exchanges by Larry Harris

required reading IMO.

Regards

BCCMicro

Darkstar's book (Daemon Goldsmith) writes it down pretty well. If you dont understand after reading it, then google on the internet / play around with MT4 a bit.
The only thing you have to know is that Market orders MOVE the market. Limit orders are resting, and waiting to get filled.

(I got some time now so i decided to write it down...)

On the picture you can see the order book of the Crude Oil May Futures.


A stop order is something that you usually place when you want to exit your trade. Let's say I short at 48.55 and place my stop at 48.60.
What happens when price goes up and 48.60 starts getting lifted? My stop loss order will trigger. Stop loss order = get me out of the trade. NOW! = It's going to turn into a market buy order. So in that essence a stop loss order is a "pending market order".

Hope this helps.

PS: Trading and Exchanges by Larry Harris Is a nice and thick book. It's currently holding my laptop at a nice angle. You don't have to read those 500+ pages, unless you are interested in the mechanics... (I found that book kinna useless...)

subscribed finally........ found the page related oft.... but still i am searching for good indicator.
if any one have then please ............share for me

Hi guys,
I would like to invite you to my new thread where I post everyday new intraday trading levels. I use price action, market profile and orderflow to make them. You can all see if this method works for you. I think it will
Here is the thread:http://www.forexfactory.com/showthre...14#post9162014
You are all welcome there!

Happy trading
Dale

Where can I get it ?

Thanks

Well, Darkstar has since amplified that information he wrote in the book about reading sentiment. In short, you start with data (look at the economic calendar), then you look at the headlines. That's all you need if you're a short-term trader. If you're a long-term trader you'll also need to look at the business cycle.

However: it is important to realize that sentiment is the broad mood of the market about which way a currency pair should go, and to understand the difference between short-term sentiment and long-term sentiment. And: to make things even more complicated, there different layers of sentiment, and sometimes they go in opposite directions. So the key really is to identify what the market is currently focused on (be it interest rate differentials, inflation, geo-politics, or whatever), and what information can cause that focus to change. Then watch price action for the greenlight.

Hello. newbie here. interesting discussion and can be used as a source of knowledge about problems around forex.

It seems as we are a terminated species, is there any Order Flow traders still alive?

And does anyone know what happened to GRKFX?

Still alive?! Ha!

I find it fascinating how many flavors the order flow approach has taken on over the years. Most of what I see nowadays is market profile stuff, the big insights are not to be found there, at least nothing terribly exciting that I've seen.

For me, order flow evolved into a tool for thinking about markets: it was boring, quiet thinking and thought experiments that led me to flashes of insight and eureka moments.

Trading is a game. I've probably mentioned before that the biggest hurdle facing most 'traders' nowadays is they don't even know what game they are playing. If you don't know what game you're playing, then you're probably getting gamed.

I have a crazy suggestion that might startle many of you, might even get me laughed out of the room, that's okay: Any tradable instrument, currencies included, should only be traded at one price. That's right, YOUR PRICE, whatever it is. If you cannot get whatever it is you're trading for your price, then walk away. And each instrument you trade should be allocated enough capital where failure won't wreck your account. And you can easily set yourself up to win big with a <50% win rate. If you're stingy on YOUR PRICE, then the risk:reward should be in your favor most of the time.. WILDLY in your favor!

Forex, Crypto, whatever, has a way of wasting YEARS of time and also causes an inefficient misallocation of capital. If you're like me, you got into FX and learned charting, indicators, blah blah blah.. It's the charting that sucks you in and disorients you because you spend a lot of time 'working' at this exercise and that alone starts to become its own reward. The little wins here and there pull you ever harder into the vortex on that elusive search for the 'perfect pattern.' You concoct this hair-brained idea that you're going to 'trade' just a couple of instruments and somehow make a living doing that.. GOOD LUCK!

By attempting to allocate much of your time and capital to one sector of the market, the opportunity cost is astronomical. While you're 'studying' EURUSD with a magnifying glass, a whole myriad of opportunities evade your attention. Your FX broker definitely doesn't mind, you're sending his kids to the ivy leagues, but your capital definitely minds! And EURUSD - for giggles, I'd buy that pair if I could someday acquire a position for < $.75 or so. And it wouldn't be a huge position because of the time involved.

I would submit that wildly better opportunities for your capital exist all over the place, the world of financial instruments is huge, go on the hunt for the instrument that is positioned to pay you crazy returns without the use of leverage! You can go from trading forex to 4X...If you catch my drift! And I'm not saying that there are no opportunities in FX, but I am screaming that, at least right now, which currency pair is going to give a 1,2,3X return over the coming months (Silver )? Why trade for pips for another minute if you can trade for orders of magnitude? Maybe it's a stock, a crypto, a commodity.. There is always a trade out there waiting for you to find it. And it doesn't need to be rocket science!

And all those years spent on price charts.. They will bear fruit where you're not expecting it!

Old Scotty B found his way into the stock market a few years back and... All the toil and struggle years were worth it.

And the stock market let's you trade all sorts of markets via proxy.. I was researching North Dakota oil companies a couple years back and I was reviewing different stocks. I found a little outfit called QEP Resources that was trading for next to nothing. I bought a fair amount and held that position..QEP ended up being bought out by Diamondback Energy. I just held on and rode that trend (the big rise in oil), what a beautiful trade that was. Totally blew all my memorable FX trades out of the water.

Right now I have a new position... In Crypto which I've avoided like a dummy till now. Old Scotty bought Origin Coin... For a little under a buck.. Again, looking through that order flow lens - the same reason why I wouldn't buy Bitcoin at current pricing. Here is a tip: when your entry into a market is filling someone else's profit-taking order..that is DANGEROUS and likely to be followed by drawdown!

Probably enough rambling for now..

I think there are opportunities everywhere. Just be in the right place at the right time with good thinking.

I should have at least briefly mentioned what the order flow game is:

We will use chess as the mental model to hang our understanding on:

In chess you have a game board, game pieces, rules of the game, and the unseen decision making process in your head.

In a market, the price ladder is the game board, orders are the play pieces, the matching engine is the rule book, and like chess, the decision making process and actual game play and strategizing happens in your head (or processor in some cases)--It's what's in your head that's important! Knowing how chess works, all the rules, etc, doesn't make you a good chess player, that is just the beginning before you can even call yourself a chess player. Sadly, many 'traders' are playing chess, as it were, with geniuses, but they don't know how to play, they don't even know what the gameboard looks like! That is what I mean when I say you're getting gamed!

Like chess, the current state of the game should be an input, or a key variable you run through your own thought process or market approach.

The game of trading is probably more like poker than chess, because deception and emotional manipulation can be used as a strategy. Take Bitcoin for example... I don't own any bitcoin. The time to buy BTC was when nobody believed in it, when it just didn't make sense to put money in it. Same goes for Shiba Inu. A year or so ago some player put $8K into that coin, at the time we'd all have laughed, that position turned into billions of dollars. There are other 'junk coins' out there now that don't make sense to pour a bunch of cash into. The point is that buying should be done when nobody cares, when people are dejected and don't care anymore. Your mom and grandma can tell you BTC is going to $1M, this is a result of emotional pumping. All the people saying that BTC is headed for a million are the ones offloading their coins on you at the current highs. Remember you're playing a GAME?

Lastly, proper Trading historically meant buying at the bid and selling at the ask. Or at least buying at the bid, suffering little drawdown, and ideally liquidating at the ask. In retail FX, you don't get this basic opportunity. Trading currency futures would open this possibility. And even then, those who see and control, or at least have first dibs on order flow typically have the advantage. One easy way to mitigate this factor is to trade longer term.

Lastly, to muddy the waters further, trading isn't a static game, it's dynamic, it's constantly changing based on what participants are doing, seeing, hearing, feeling, etc. The market is a complex adaptive system. The participants change the game as it moves along. Think of a flock of starlings, or a school of fish. You have a large group of individuals, all acting individually amid the group, but from the human observers point of view, we see beautiful flowing, sweeping movements. The beautiful form we see moving, expanding, contracting, glimmering, rising, falling, accelerating, slowing, etc, is emergence. The group of birds and their behavior produce this shifting shape we're seeing. No single bird or fish is responsible taken alone, what we observe is a property which EMERGES from a system of individuals INTERACTING with one another. The markets are no different.

Forex is a dynamic market and the scenario which makes the prices move is demand and supply. I think it’s the imbalance between demand and supply which moves the market. When the price goes up, this simply means that more buyers are willing to buy the currency and there’s more demand. When the prices fall down, this suggests that there are more sellers than buyers.

Well said! I searched chess and reached here. This thread must be worth exploring.