Convince me on your method...

Its all order flow trading trading. Every directional method out there endevours to predict order flow as this is the only way that prices can move. Each strategy just goes about predicting order flow in a slightly different manner.

It is simple supply and demand, if more people want to buy than sell, then price will move up to satisfy the imbalance of supply and demand. Price does not react at your supply and demand zones because of some magical quality they have, it is simply because other traders see them too so they will place ORDERS at these levels. Also, there are people holding the instrument that remember the level was the highest it had been before so they don't want to miss out on the best price they have seen so they place an ORDER to get out when it comes back. Also, people who got on at demand level that didn't work waiting to get out at breakeven so they will place an ORDER when price returns (support turned resistance). Etc, etc, etc...

Once you really get your head around this it becomes less about using a single method and more about trying to work out who is in the market at any given time and why, who is waiting on the sidelines ready to pounce, which levels will be defended with big money and which will be swept to take out stops for either a profitable stop run or a liquidity hunting excersise etc etc.

Hope this helps

Just an example from this morning.

Lightgreen trendline is broken. We have the 9:30 bar (channel breakout) that then completely reversed the next 3 bars...(strong move)... BTW I actually took that complete bar short, took 1/2 profits near the bottom and was stopped out at BE for the other half position but that was before the trade I am discussing.

Anyway, because of the strength of 9:35, 9:40 and 9:45 bars I suspected just like many others it might breakout on the top forming a new upchannel...(out of the red downchannel). The last green bar even closed on its high!

So we call this move 1-->2... and then we expect a retracement. We get the retracement and we know we might get a point 3 up (continuation) around 10:00... checkout 9:05 low. Just a suspicion...we need it confirmed.

So we switch to 1 minute chart where we have a downchannel at that moment..not a good moment to enter.... as soon as it is broken we know we have a good chance this will be a point 3 up (continuation of up move) so I went long. I monitor a few 1 minute bars and switch back to the 5 minute chart.

A trendline BO on the 1 minute is a bar breakout on the 5 min (traders watch this)...the bar finishes and we have a BO on the 15 min (more traders enter etc etc)....and everyone is long but we are one of the first.. Everything comes together. All timeframes. If it reverses quickly we have enough time to get out.

Took profits a little too early but that doesn't matter. Sometimes I still have problems "zooming out". Very important to look again at the big picture as soon as it's a safe trade. It's big picture-->zooming in, enter trade, micromanage risk--> zooming out again...look at the big picture.

Just an example how I trade fractals and how I use lower timeframes for exact entry and timing. You can enter using a 2-5 pip stop and make 100 pips, depending where the market takes you.

regards,
Ivo

numbers 2+3 = 5 .. thats your answer..




2.(VSA)+3.(Supply and Demand combined with PA) = 5.(Combination of above)


that should be enough to study...



example on a UJ trade i took (bad entry due to market order)


notice that this action happens within a demand zone


watching the action on M5 .. (notice that u dont get crystal clear actions wich u can lable .. like its seen in many examples..)

then watch on higher TF as it gets more clrearer here on M15 .. speaking of the selling climax..

also notice the absorbtion.. wich gets me confident of holding full position.. instead of selling at resistance..