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influx of money

  • #1
  • First Post: May 10, 2013 11:51am May 10, 2013 11:51am
Hello

lately I was thinking a lot about influx of money in fx after one of most respectful traders in ff wrote a lot about it but unfortunately he has (as i understant) his own indicator which he of course doesent share.

So my questions to you are:

- How influx could be measured in fx? I must explain that i dont ask about the power of currency but influx, so money coming in and money coming out from the market? Because for example the USD could be stronger in relation to EUR but the price doestn move because there is no influx.

- Is there any indy it could show influx of money?

- Is order flow one of possible solutions for measuring influx?

- Could we get this info from any other situation for example, a PA deviaton from MA...

Any idea?
  • #2
  • May 10, 2013 2:10pm May 10, 2013 2:10pm
Quoting ataata
Hello lately I was thinking a lot about influx of money in fx after one of most respectful traders in ff wrote a lot about it but unfortunately he has (as i understant) his own indicator which he of course doesent share. So my questions to you are: - How influx could be measured in fx? I must explain that i dont ask about the power of currency but influx, so money coming in and money coming out from the market? Because for example the USD could be stronger in relation to EUR but the price doestn move because there is no influx. - Is there any indy...
Influx??
Are you talking about trading volume?

"Because for example the USD could be stronger in relation to EUR but the price doestn move because there is no influx."

If the price doesn't move, it's because bullish and bearish sentiment is balanced or nobody has to buy or sell. This means that the USD is NOT stronger than the EUR at that time.
Please Do Not PM Me With Coding Enquiries
  • #3
  • May 10, 2013 2:41pm May 10, 2013 2:41pm
a tic speed ratio of more than 2:1 off the lows (2 up one down)
And of the highs a lower speed = Buying
Also tractioning footholds for a climb ;thinking
Just a guess.
Time hides Nothing
  • #4
  • May 11, 2013 1:04am May 11, 2013 1:04am
No I am not talking about trade volume. Because I think that volume shows already done trades so it shows us past activity.

The tick explanation from Cindy is more close to me. Because there could be a huge activity in the market (agresive buying and selling) but because of huge demand and supply volume, the price doesnt move. So with ticks we could see how many deals is done on buy and how many on sell side.

Because we cant see trading books and where the orders are because of the nature of fx market maybe such indicator which will show what Cindy explained would be interesting because if we have on demand 100 lots and on supply 100 lots and ticks frequency is 2:1 on buying side, under the prediction that buyers buy and sellers sell same quontity in one trade (tick) the supply will be broken sooner than demand. So we could predict future. of course there could always be one huge trader who can in one trade (tick) with "fill or kill" order "kill" the demand or supply. But i think that some frequency could show us the aproximation of mood on the market.

Great info/idea CindyXXXX, THX!
  • #5
  • May 11, 2013 4:01am May 11, 2013 4:01am
Quoting ataata
Hello lately I was thinking a lot about influx of money in fx after one of most respectful traders in ff wrote a lot about it but unfortunately he has (as i understant) his own indicator which he of course doesent share. So my questions to you are: - How influx could be measured in fx? I must explain that i dont ask about the power of currency but influx, so money coming in and money coming out from the market? Because for example the USD could be stronger in relation to EUR but the price doestn move because there is no influx. - Is there any indy...
i use a basket of pairs for this type of information.although not as clear cut as you are looking for,it shows me when major influxes of change are taking place,i dont need to know why or i should say the detail,is it low liquidity or large dominating orders,all i need to know is the effect,this could be coded i guess into a indicator but that's beyond my limited brain capacity.

its very clear when this happens,the effect from one must have effect on its related pairs,we can call this many things,momentum ,volume,it dosnt really matter,the only thing we really need to see is the effect !

the value change is very easy to see across the whole market

also cindies point on tick is my entry,you can also see influx using tick if you spend the time watching and reading the qoute price,infact i traded from tick and qoute reading for many years,but i find know that value and the momentum that i see in value overall across the market to be far simpler and more reliable
  • #6
  • May 11, 2013 4:22am May 11, 2013 4:22am
I am more interested in something like breaking the stone... for example i will hit it 9 times but it wont break (the price will not move beacuse a huge limit sell/buy order on one level) but i would know that somebody has hit it 9 times and that there is a big propability that the next hit will break the stone (the traders will buy/sell all quantity they want on a certain level and then we will go to the next level).

What is advantage of this? I think that so called currency power indicators are showing one curency relative to basket of others, but they are calculated from past action and only when the price has already moved. If i could view that buyers are "hiting" the higher level with 1:3 frequency I would expect that there is a higher probability that the price will go higher and that there is a bullish influx of money into the market.

Ok what i am talking about is also a past action but i think it would have a great value for scalping trader like myself if I would know that for example from last 10 traders 2 were selling and 8 are buying at 1:4 ratio.

Of course there could also be addition to this...
  • #7
  • May 11, 2013 4:26am May 11, 2013 4:26am
just to add,

its very easy to allow our minds to believe that its a trade verse trade,most of what happens is simply currency exchange,we tend to forget this,after all the exchange is the world markets doing everyday transactions .we are trying to determine the effect of that which is visible .
  • #8
  • May 11, 2013 7:56am May 11, 2013 7:56am
TicksSeparateVolume.mq4 and range bar chart, and you can see "a tic speed ratio of more than 2:1".

Only "problem" whit this is, that you really have to sit and monitor all the time, because, when this happens, you have to act fast.
  • #9
  • May 11, 2013 8:28am May 11, 2013 8:28am
.
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  • #10
  • May 11, 2013 8:44am May 11, 2013 8:44am
Juhanimi,

great! Thank you very much!

This indicator could be interesting. This could be additional confirmation near trade zones. Ok i know that this is OTC market and that this indices are limited but.... . Will definately demo it next week.
  • #11
  • May 11, 2013 8:49am May 11, 2013 8:49am
Works only with range bar charts, and it is not "funny trading".
It is same than level2 trading, have to watch monitor/numbers all the time.
  • #12
  • May 11, 2013 8:53am May 11, 2013 8:53am
I use CRB in my trading. Is there any specific range bar indicator for it?

I would use it only for confirmation.
  • #13
  • May 11, 2013 8:59am May 11, 2013 8:59am
I use RangeBar_e.ex4, and that is most stable what I know for MT4.
  • #14
  • May 11, 2013 9:03am May 11, 2013 9:03am
Does this tickseparatevolume indicator counts:

- number of trades or?
- absolute volume in curency of buying and selling orders?

THX!
  • #15
  • May 11, 2013 9:25am May 11, 2013 9:25am
You can use Google to study MT4 volume.
Some studies shows over 90% +correlation with
"real market".
  • #16
  • May 11, 2013 9:31am May 11, 2013 9:31am
Quoting juhanimi
You can use Google to study MT4 volume. Some studies shows over 90% +correlation with "real market".

Great THX!
  • #17
  • May 26, 2013 9:38pm May 26, 2013 9:38pm
ATR holds promise for this type of analysis. But it might not be as simple as throwing up an ATR 14 per se.
  • #18
  • Aug 9, 2016 12:48am Aug 9, 2016 12:48am
After a lot of research i think that the influx of money is definitely one of way to earn in fx. When researching this subject i find out:

- Time charts (for me) does not show real market behavior. Why? Because there candles are drawn even if the market does not move. So for me the right market moves are represented in tick charts.

- Every big move on the market starts with a big order which is shown in tick candle.

- To find out when ticks or orders are out of averege i think MACD indicator could be used.

- To see in which way to trade I need picture which I get from 1 min chart and MAs on it
  • #19
  • Aug 9, 2016 2:34am Aug 9, 2016 2:34am
You can simple understand the influx by comparing the relative pairs strength Outflow. Let me share with you an example. Yesterday JPY was the weakest currency on the board, if you open all 7 JPY pairs on your screen like, EJ, UJ etc. you will find out that CHF moved only 10-20 pips against JPY and all the other currencies moved more. Here you have a forecast, CHF currency will be weaker against many other currencies, you can scalp it in a range, or using a trend strategy on small timeframes.
Looking for profitable short term trades ...|
  • #20
  • Aug 9, 2016 7:38am Aug 9, 2016 7:38am
If you can't sit all day infront of the PC, the best way to see and learn real momentum is by watching the latest 1h candles.
1h is optimal, it's not too short and not too long to get a very good idea what's going on right now in the market.

1h --- All-vs-USD
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