Domino's Price and order flow trading

here is a better pic also in conjunction with order book

wait for the 1st pullback,then wait for a 2nd pullback close to the 1st one, if price fail to break the 1st pullback then play the breakout (2 pullbacks close together mean orders (vol.) r coming in and most likely will push price)

For what trade the domino

Now it makes perfect sense. Thanks for the clarification and again, great job.

getting ready for massive selloff? london session?

Do you like to stick with E/U mostly, D?

Thanks!

The last few posts have been helpful in understanding your approach.

nope just for the thread easier to stick to just one for a thread Id guess instead of looking everywhere

Hey Domino,

I used to think along similar lines as to what you are doing. I used volume though in conjunction with swing points. Basically, if you have a long, high volume bar, the VSA would call it stopping volume. They are probably right. My question at that time was, what happens when a larger group of stops execute? The liquidity providers get stuck with that inventory. The idea was that when high volume swings were broken, the holders of all that inventory would also have to stop out. The only problem is that I was wrong in my basic assumptions. Not everybody has to stop out all the time.

There was a night two weeks back when EU was falling and we went through a narrow buying phase. IFR reported it was the Japanese hedging their positions for the weekend. It took several hours of side ways action for them to accumulate enough for price to fall again. I bring this example up to say, they were the ones playing out that PA. They had no reason to issue stops under that area because they were hedged. The market was bearish and so the Japanese had no problem getting filled in a very narrow range. The way to play something like that would be to simply wait for the bottom to break. This would show you that the hedgers were done and that price could now fall, but not nessisarily because of stop losses. Certainly stops could have played a role, but not loss covering nessisarily.

An equally faulty line of thinking is to assume that there are significant pools of speculative/momentum buy/sell stops behind every swing point. While this might be true is some cases, it's certainly not always true. In my further studies, I have found that the big guys always show their hands as contrarians. They are the ones who cause pivots to form, not nessisarily every little 5 min swing point, but the pivots that turn price around for 50 pips or more.

**Edit**

MY point in the last paragraph that was, if you're going to follow a purely momemtum stratagy, then you're always going to get in at less desireable prices than say the guys who are forming tops and bottoms. Over the long haul you'll have some success, but you're always leaving some pips behind. This isn't the end of the world and there are unique risks that go along with both the contrarian and momentum stratagies, but it's the contrarians who's names go down in history. It's the momentum guys that pad the contrarians wallets. This is true because all cont. have to do is scare the market into forming a top/bottom and then let everybody else move prices away from their entry. Nobody trades into them for fear of being swallowed alive due to their size, and when they do they are in fact eaten most of the time. I've seen price push 15-20 pips past the big guys entry (at most) only to see them continue to dominate with size positions and price is sling-shotted back into oblivian. Trading is not a fair game, it's favors those who have the cash to play hard ball. If you can veryify when the giants are out stepping on ants, then you're golden.

so you would be going short on a break of the 1.3380 level as long as the candles are not super large on the move down correct?

Here is a picture from the pound on the 15 minute.
Failed high was present, and we broke the most present low.
Black lines show areas of 'possible' stop accumulation areas.

Criticism is always welcome

At Breakeven now.
Free trades are the best

Good job, nailed to the pip and bounced ~100 pips, that's about as easy as it gets and as complex as it needs to be in my opinion!

-

Broke even on EU 3379

yes went short at yellow .. yellow dash was next short.. red is where i stopped out at breakeven

Hi Folks,

Good to see we are all back to trading & further learning instead of backbiting !

Regards,

BabeFX

pulled long from usd/chf 1.06916 seperate from this thread if your trading that too at BE now new reactions have been odd lately heres order

Great thread Domino, this is a real order flow thread (not that I trade that way) but its good to see something useful rather than a bunch of idiots pretending to know what they are talking about, just stating the obvious.

well its good to talk about it.. im just not gonna tackle that post at 4 in the morning. maybe tomorrow

I gotta admit trading these faster time frames than Im use to is like crack and gambling.. gotta watch out with this stuff. Generally I spread risk very thin among 10-50 vehicles over long frames and generally just watch the dynamics continuously rotating sectors and balancing different areas .. but this stuff like crack

The trade I talked about yesterday was an OF reversal but unfortunately the trigger was not good for me since it came too low. Today we just had an OF reversal again with a possible entry but the trigger candle did not meet my criteria once more. Hoping to see another push and a retracement to get a decent entry.

Domino, I hope you don't mind me posting on your thread. I thought that since we have similar styles it could help others, as well as myself, to improve and understand price analysis and OF trades.

Hi Domino!!

Do you trade this kind of stuff more on the 1H and 4H (3H) timeframe? I find it more reliable on the higher timeframes..

Can you make some other example on hoh to classify the resistence and support zones??

Thanks!!