Domino's Price and order flow trading

this graph show how good money management and stepping up into your trading can show great profits with very minimal risk... spread this technique across several markets/pairs/vehicles and gain diversification and additional safety as well..

Interesting, thanks. It certainly could be a good year for trading the commodity currencies given the uncertainty (or rather certainty but in denile), regarding the euro zone.

RZ10E-swapped Euro short 3150 - tracer at 3200

ANOTHER GREAT CALL FROM MR DOMINO........

thanks hornet .. still hasnt confirmed yet.. looks like could just Break even

tracer BE position 33 and addon all be stops around RZ10E-Swap

Domino...
First of all,thankyou for ur such a good thread.I am reading ur thread from last week.I am not getting many things..Is somebody still looking this thread i many questions.I googled about the IRD but cannot understand.how do we look to the IRD chart and how do we decide that this trade is valid for entry or not throught IRD?I will be thankfull if someone replies.

Shiva

Not sure if i'm telling you something you already know or not but, the IRD is the difference between the interest rates from the central banks of the 2 currencies of any pair

here are the interest rates:

http://www.fxstreet.com/fundamental/...t-rates-table/

AUD/USD for example
AUD interest rates are 4.25%
US interest rates are 0.25%

So the interest rate differential is 4% in favour of the AUD. So you (and everyone else) get paid if you are long AUD/USD and you have to pay if you are short of it.

Instruments with high IRD and yields tend to appreciate, but there is more to it then just going long any currency with a high IRD, there are many other factors involved. In my opinion if you are starting out don't worry about it too much, just avoid being short pairs with big positive IRD's and avoid being long pairs with big negative differentials (And learn about the structure of markets in general and the effect of IRD's/dividends as you go, it is beyond the scope of any single thread, i believe Domino posted a few pdf's).

The method is sound enough anyway if you learn it sufficiently.

Havaina

Thanks a lot for ur great information.I got it but i have a confusion.IS it changing a lit bit day by day or weekly or monthly!or it is constant until next meeting?And i heard about open interest rate ,is this also same?

They usually have a meeting every month to decide whether they will be changed or not, it is on the forexfactory calender. (they can be changed at anytime, although it doesn't happen often)

I'm not sure what you mean by 'open interest rate', if you are referring to 'open interest' as in orders, that is something else.

I think better in images, if you want to know about open interest (orders) start reading from Darkstars post from the page in this thread http://www.forexfactory.com/showthre...274208&page=10

This is a very good book if you want to learn the basic's of how markets work http://www.amazon.com/Trading-Exchan.../dp/0195144708

It sounds a bit like you you are trying to run before you have learned to walk. Learning This stuff like learning any industry will take time. In my opinion, just learn the technical method as Domino has outlined, and practice. You can learn the other stuff on the side as you go.

This is just my personal opinion though, i don't trade exactly like Domino although my method is similar and uses the same basic principles. I learned alot from this thread. Just wait for the good setups and trade them.

Havaiana
T hanks i am going through ur information.sorry to asking u the questions before thinking.I read many technical from forexfactory form last 1 year but i have zero knowledge in fundamental.happy pips.thankyou

eventually got this rz to work out for me awesome how this 1.33 zone showed so much action lots more movement on the way good luck guys...

2ndary swap point rz around 2600 (for continuation of trade from 3200) narrow IRD short counter...

@ 2400 we are at all types of extremes probably a good point to peel off a good chunk of the position off as inside accumulation and outside capitulation occurs

pulled euroshorts moved into some nice aud/usd longs wide ird trades... these are the types i like... looks like euro should start finding support so there are better options out there to trade... the aud is going to climb for a while. if playing the euro /aud short it looks to continue but note we are in a huge outside long term capitulation zone.. which means the euro could begin to snap back odds are tho its a systematic crash beginning ... something i would want to avoid altogether

stagnation around 600 aud/usd pulled trade looking for shorts pocketed 500 pips at 10:1 nice 3 month trade...

hey Domino

2nd time im reading this thread, im still trying to grasp some concepts around here, I' ve also read your posts on the supportresistance thread.In one post you said you love renko charts so i was wondering if the precepts taught here were also applicable with renko blocks,cause it looks a bit complex.
Thanks and great thread by the way .

Hey metta I do enjoy renko charts because they have nice sharp points and show breaks as black and white limiting the judgement call on breaks.

If you have any question about the thread I would be happy to clarify anything.

looks like we could be getting the first daily compressive wave on the eur/aud

http://www.forexfactory.com/showthre...67#post6126567

Following up on this

Looks like this trade did well