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Going With The Order Flow

  • #41
  • Edited 2:20am Oct 15, 2015 2:00am | Edited 2:20am
Has anyone thought about what it takes to turn a Strong Trend around?

As far as I know there are three things that can turn the market:

1; In a Down-Trend, see NZD/USD Chart below, all the Sellers Liquidate (Buy) at the same time.

2; The Market hits a Zone of heavy Buying Volume that is enough to consume the remaining Selling Volume.

3; The Big Institutions have been Buying into the Down-Trend so when there are no more Sellers, for them, to Sell to the Market goes up.
Attached Image (click to enlarge)
Click to Enlarge Name: 15th Oct 15 NZD:USD MN Chart.png Size: 110 KB
  • #42
  • Edited 5:14am Oct 17, 2015 4:47am | Edited 5:14am
For the Market to move there has to be an Imbalance in the Order Flow.

The EUR/USD Chart, below, has obviously been in a Down-Trend (Bearish Imbalance) that had it's Lowest Low in March this year since then the Market has made a series of HL.

An obvious observation is that the Market is running out of Selling Volume but there isn't enough Buying Volume entering the Market to push it higher.

The Market needs to reach the next Zone of significant Pending Volume, for that Volume, to take effect on the Market.

This is how the Markets move sometimes they have to go up (looking for Selling Volume) before they can go down and visa versa.
Attached Image (click to enlarge)
Click to Enlarge Name: 17th Oct 15 EUR:USD W1 Chart.png Size: 141 KB
  • #43
  • Oct 17, 2015 6:15am Oct 17, 2015 6:15am
i like to use ninjatrader to analyze while i still trade through mt4. orderflow is the really leading indicator and my trading got better since use orderflow analysis.
i like to see iceberg, large trade moreover if there is one single bigtrade usually that could be a turning point especially when market is far below the value area/fair price.
Thursday eurusd market was on imbalanced condition and friday market was on balanced condition.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: balance.png Size: 43 KB
Click to Enlarge Name: inbalance.png Size: 42 KB
Click to Enlarge Name: Untitled.png Size: 26 KB
“Hope is [a] bogus emotion that only costs you money.” - PETER LYNCH
  • #44
  • Oct 17, 2015 8:24am Oct 17, 2015 8:24am
Quoting stevepatt
Has anyone thought about what it takes to turn a Strong Trend around? As far as I know there are three things that can turn the market: 1; In a Down-Trend, see NZD/USD Chart below, all the Sellers Liquidate (Buy) at the same time. 2; The Market hits a Zone of heavy Buying Volume that is enough to consume the remaining Selling Volume. 3; The Big Institutions have been Buying into the Down-Trend so when there are no more Sellers, for them, to Sell to the Market goes up. {image}
NZD/USD has shown a Bullish Imbalance for the last two weeks.

I'm looking for a Market Test of a previous Weekly and Daily Balance Level.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 17th Oct 15 NZD:USD W1 Chart.png Size: 91 KB
Click to Enlarge Name: 17th Oct 15 NZD:USD D1 Chart.png Size: 103 KB
  • #45
  • Oct 18, 2015 5:53am Oct 18, 2015 5:53am
The Volume of Limit Orders is what creates Market Structure.

In an Up-Trend the Volume of Market and Limit Buy Orders is consuming the Volume of Sell Limit Orders and the Market rises.

It's when a Bullish Market encounters a Zone of Sell Limit Volume that is greater than the Market Buy Orders that the market begins to fall.

As the Market falls the Buyers Sell Stop Orders are triggered adding to the Selling Volume.

As the Market falls New Sellers are attracted into the Market adding their Market Sell Orders and Limit Sell Orders to the Selling pressure.

It's only when a Zone of Limit Buy Orders that is greater than the Selling Volume, is encountered, that the process starts again in the opposite direction.

I've found it very helpful, in my understanding of the Markets, to look for what is actually happening within the Market to create Market Structure.

I also need to put myself within the psyche of the Traders who are participating. Fear and Greed.

How would I feel if I saw my winning position slowly eroded I would be feeling pressure to Liquidate (Sell) adding to the Selling pressure. Greed

How would I be feeling if I was a late Buyer and saw my Sell Stop Loss fast approaching. Fear

The Markets aren't about Price, Price is a by-product of peoples participation within the Market.

It's our feelings of Greed and Fear that actually drive the Market.

This takes me into the Market rather than just doing Technical Analysis which is concentrating on Price movement and not what is Driving the Market to produce that Price Point.
Attached Image (click to enlarge)
Click to Enlarge Name: 18th Oct 15 USD:CAD D1 Chart.png Size: 138 KB
  • #46
  • Oct 19, 2015 3:25am Oct 19, 2015 3:25am
Quoting SingaFX
i like to use ninjatrader to analyze while i still trade through mt4. orderflow is the really leading indicator and my trading got better since use orderflow analysis. i like to see iceberg, large trade moreover if there is one single bigtrade usually that could be a turning point especially when market is far below the value area/fair price. Thursday eurusd market was on imbalanced condition and friday market was on balanced condition. {image} {image} {image}
this is what i mean
but i don't take buy in this case because i did not scalp the market. i see larger tameframe (daily) and this week i'm bearish no buy in my book.
Attached Image (click to enlarge)
Click to Enlarge Name: bt.png Size: 57 KB
“Hope is [a] bogus emotion that only costs you money.” - PETER LYNCH
  • #47
  • Oct 19, 2015 4:04am Oct 19, 2015 4:04am
Quoting SingaFX
{quote} this is what i mean but i don't take buy in this case because i did not scalp the market. i see larger tameframe (daily) and this week i'm bearish no buy in my book. {image}
stevepatt, im sorry if i disturb your journal. this is my last post to complete the sentences i promise you.
so how i use this buy signal when im in bearish bias? i'll do scaleout some active shorts position or move the stoploss to secure the shorts trades.

SingaFX,
“Hope is [a] bogus emotion that only costs you money.” - PETER LYNCH
  • #48
  • Oct 19, 2015 7:27am Oct 19, 2015 7:27am
Quoting stevepatt
The Volume of Limit Orders is what creates Market Structure. In an Up-Trend the Volume of Market and Limit Buy Orders is consuming the Volume of Sell Limit Orders and the Market rises. It's when a Bullish Market encounters a Zone of Sell Limit Volume that is greater than the Market Buy Orders that the market begins to fall. As the Market falls the Buyers Sell Stop Orders are triggered adding to the Selling Volume. As the Market falls New Sellers are attracted into the Market adding their Market Sell Orders and Limit Sell Orders to the Selling pressure....


I really like the way you interpret information on the chart. I have to read your comments many times to get the point :-) , but it definitely makes sense.

Could you please share with us some of your trading decision ? I mean something like this: "If is see this pattern on the chart, I open Buy order and place TP and SL into this area..."

Thank you
  • #49
  • Oct 19, 2015 5:06pm Oct 19, 2015 5:06pm
Quoting mili13
{quote} I really like the way you interpret information on the chart. I have to read your comments many times to get the point :-) , but it definitely makes sense. Could you please share with us some of your trading decision ? I mean something like this: "If is see this pattern on the chart, I open Buy order and place TP and SL into this area..." Thank you
Hi mili13;

When I started to look at what was causing the Market to move like it does and the emotions of the people who are involved with the Market things became a lot clearer. Doing this takes you to a deeper level of understanding of what's happening within the Charts rather than just observing Price movement that creates candles.

We are Trading in a Zero Sum Market, this means that for every Buyer there has to be an equal and willing Seller.

This means, when we are convinced the market is going Long the person on the other side of our Trade is convinced the Market is going Short.

If we are convinced the Market is going Long we want to be entering, as close as possible to, where the Sellers have their Buy Stops often it's the Losers Stops being hit that gives the Market it's Momentum.

I'm trying to find Levels of Market Balance, where Buyers and Sellers are equal, then I'm looking for clues that will get me in line with a Market Imbalance. A Market becomes Imbalanced when there is an increase in Buying/Selling Volume this often occurs when Stops are hit and there is a dramatic increase in the Buying/Selling Volume if you can position yourself in line with these Stops being hit you will have Market Momentum at your back.

I hope the EUR/USD W1 Chart below helps.
Attached Image (click to enlarge)
Click to Enlarge Name: 19th Oct 15 EUR:USD W1 Chart.png Size: 136 KB
  • #50
  • Oct 20, 2015 1:10am Oct 20, 2015 1:10am
Quoting stevepatt
{quote} NZD/USD has shown a Bullish Imbalance for the last two weeks. I'm looking for a Market Test of a previous Weekly and Daily Balance Level. {image} {image}
NZD/USD D1 Buy Limit Pending Order

Mili13 I hope this also gives an indication of what I'm looking for.
Attached Image (click to enlarge)
Click to Enlarge Name: 20th Oct 15 NZD:USD D1 Chart.png Size: 120 KB
  • #51
  • Oct 20, 2015 1:50am Oct 20, 2015 1:50am
USD/JPY D1 Sell Limit Pending Order

I have two active Trades both Long positions on AUD/USD and three Pending Limit Orders on EUR/USD - NZD/USD - USD/JPY
Attached Image (click to enlarge)
Click to Enlarge Name: 20th Oct 15 USD:JPY D1 Chart.png Size: 117 KB
  • #52
  • Oct 20, 2015 2:06am Oct 20, 2015 2:06am
Quoting stevepatt
{quote} Second Long Trade Triggered. Taken some time for the Buying Volume to pick up after the Short Term Buyers have taken profit (Sold) {image}
AUD/USD Trades Update
Attached Image (click to enlarge)
Click to Enlarge Name: 20th Oct 15 AUD:USD D1 Chart.png Size: 114 KB
  • #53
  • Oct 20, 2015 2:38pm Oct 20, 2015 2:38pm
Quoting stevepatt
{quote} AUD/USD Trades Update {image}
hi Stevepatt, thank you very much. Nice examples.
  • #54
  • Oct 20, 2015 6:07pm Oct 20, 2015 6:07pm
Subscribed to the thread. I hope I will learn alot from Steve.

Keep doing great work mate!

Steve please add more details about order flow. It's really new stuff for me.

Regards.
Umair (Umee)
I Win, I Lose, It's my Job... And I Love it!
  • #55
  • Oct 21, 2015 1:51pm Oct 21, 2015 1:51pm
Quoting umairsheikh2
Subscribed to the thread. I hope I will learn alot from Steve. Keep doing great work mate! Steve please add more details about order flow. It's really new stuff for me. Regards. Umair (Umee)
Hi Umee;

This is a subject that is very new to me also and what I'm doing here is my interpretation of using Order Flow within my Trading.The link I've put into the first post to gspajon thread is a good starting point to learn more.

Also check out the pdf below, it's a book that has really opened my eyes to how the Markets work. Also do a google search for the author he has a lot of "free" content on his website and a youtube channel.

I found the pdf by doing a google search of the authors name, it was freely available on the net.
Attached File(s)
File Type: pdf Jason+Alan+Jankovsky+-+Time+Compression+Trading.pdf   3.1 MB | 4,514 downloads
  • #56
  • Oct 21, 2015 8:32pm Oct 21, 2015 8:32pm
Quoting stevepatt
{quote} Hi Umee; This is a subject that is very new to me also and what I'm doing here is my interpretation of using Order Flow within my Trading.The link I've put into the first post to gspajon thread is a good starting point to learn more. Also check out the pdf below, it's a book that has really opened my eyes to how the Markets work. Also do a google search for the author he has a lot of "free" content on his website and a youtube channel. I found the pdf by doing a google search of the authors name, it was freely available on the...
Thank you so much Steve. I will read this book on holiday, its looked really great book!
I Win, I Lose, It's my Job... And I Love it!
  • #57
  • Oct 22, 2015 1:07am Oct 22, 2015 1:07am
Quoting stevepatt
{quote} AUD/USD Trades Update {image}
Both AUD/USD Long Trades have hit their Stop Losses.

1st Trade +147Pips /+1R

2nd Trade (-93Pips) / (-0.78R)
Attached Image (click to enlarge)
Click to Enlarge Name: 22nd Oct 15 AUD:USD D1 Chart.png Size: 93 KB
  • #58
  • Oct 22, 2015 1:09am Oct 22, 2015 1:09am
Quoting stevepatt
{quote} NZD/USD D1 Buy Limit Pending Order Mili13 I hope this also gives an indication of what I'm looking for. {image}
NZD/USD D1 Long Trade has triggered
Attached Image (click to enlarge)
Click to Enlarge Name: 22nd Oct 15 NZD:USD D1 Chart.png Size: 81 KB
  • #59
  • Oct 22, 2015 1:12am Oct 22, 2015 1:12am
Quoting stevepatt
USD/JPY D1 Sell Limit Pending Order I have two active Trades both Long positions on AUD/USD and three Pending Limit Orders on EUR/USD - NZD/USD - USD/JPY {image}
USD/JPY D1 Short Trade has triggered

I now have two Open Trades and EUR/USD Pending Buy Limit
Attached Image (click to enlarge)
Click to Enlarge Name: 22nd Oct USD:JPY D1 Chart.png Size: 77 KB
  • #60
  • Oct 22, 2015 2:23am Oct 22, 2015 2:23am
GBP/CAD D1 Pending Buy Limit Order
Attached Image (click to enlarge)
Click to Enlarge Name: 22nd Oct 15 GBP:CAD D1 Chart.png Size: 358 KB
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