Trading Institutional Order Flow

Time frames I trade are WK for curve, Daily for trend, 4H for execution.

My take on GBPUSD which corresponds inversly with the Dollar Index. I have a feeling we will be visiting 94.5 levels before turning back down which will correspond with the drop in GBPUSD into the watched daily DZ then a rally out.

TL is not set in stone, just there as a placeholder. Will be setting it to 3:1 RR on Sunday.

Any thoughts?

Active trade on EURAUD.

Hi Denden. Please see my thoughts laid out below.

yes it is 3:1 RR we are setting this month

best wishes

That's what it's all about.
Well done Denden.
When are you buying dinner?
Sushi??


Best wishes.

Hi AKT

By the way, a long at the Daily DZ you said you are looking to buy counter trend longs at would be that used by a day trader. Remember, we must always decide what type of trader we are and then choose the biggest time frame we look at based on that.

For a day trader, he/she is currently approaching their curve DZ and they are the ones who will be looking to go long in that DZ you highlighted.
A new SZ formed with the break of the momentum trend line is the area the day trader would be looking to as the ultimate profit target for longs taken in the DZ.

Best wishes

Hi Conom, I understand what you mean.
However, also consider what that touch represents.

Remember we are trading stacks of buy and sell orders.

Ask the question, why did price not continue falling after leaving the zone? why did it have to go back and touch it with that wick before falling?
If the imbalance was so great why did price not just continue falling after leaving the zone?

That touch went back to the zone, touched it, then fell. Suggestive of the fact that some orders had to be triggered to make price fall.

I hope that helps a bit.

best wishes

You're right

The daily chart only brings more clarity to what happened on the weekly because you are taking a closer look using the daily lens

best wishes

P.S that is a really cool chart. How did you get it to highlight like that please?

FSCapture

Den nice entry on EURAUD, this looks still like a good runner for 5860-80 though some pullback to be expected.

http://www.tradingacademy.com/resour...px?showid=1534 --- video from14:13

How cool is that.
Great validation for me.
Thanks for this.
Great traders.

best wishes

Don't you just love it when all you need is to see someone else's charts to understand what you're doing wrong. Finally starting to understand institutional order flow a bit better. However, just to check myself, can someone please validate my statements.

If prices move drastically from one "zone" or "area", that becomes a zone of interest for us retail traders because of massive moves are created by the forex titans. So basically we are just looking into zones with large price movements.

I will definitely also look more into the course suggested by Akt.

It was a shallow retest of the DBD Supply. The move downward required that much more liquidity from above to create the two extended range candles (ERC). This used up some orders sitting there.

Where I live, steaks are the delicacy.

Hello sunnychopper, good to meet you. Welcome

Yes, we are looking for Titan footprints. That can be seen on any time frame. It is just a question of how you put the information together when you do recognize those footprints

best wishes

Even better Denden

best wishes

Hello Everyone. I hope you are having a restful day getting before the game starts again Sunday night.

In this down time I thought I would share with you all, a view of Trends that is key to understanding what exactly is going on when you look at your charts and seek to follow a trend, only to see it turn on you.

I posted this view on FF in March 2016.

I hope it helps.

Best wishes

A DISCUSSION ABOUT TRENDS

I would like to address this age old discussion and issues around the idea of the Trend. My view is from my time as a trader and my experience with trading or trying to trade trends. It is just my view, nothing else.

It is a topic that divides most traders.

There are countless ways traders define trend moving averages, ADX, price action, etc.

For us as S.A.D traders, we use the inter-relationship between supply and demand zones to define trends.

Supply zones being created and respected = Downtrend
Demand zones being created and respected = Uptrend

A definition of trend that has totally changed how I look at them is this:
Trends are only the movement of price between higher timeframe supply and demand levels.

If price is moving from higher timeframe supply to higher timeframe demand we are in a downtrend.
If price is moving from higher timeframe demand to higher timeframe supply then we are in an uptrend.

By this definition, once I have identified the Curve SZ and the curve DZ I simply go to the second chart, the trend chart, to determine the trend on that chart (please note that it is not the curve timeframe chart that I determine the trend on, it is the middle chart of my sequence of 3, the intermediate chart .

By its very definition, a trend is something that has already happened. It is only recognized after the fact.

Now, what causes the most confusion is deciding on a trade direction once the trend direction is determined. We have all heard the age-old trading phrase, The trend is your friend and others like Dont fight the trend, Dont try to catch a falling knife etc.

Well, to start with, Ed Seykota, the legendary trader made a little addition to the phrase the trend is your friend. He said, The trend is your friend, UNTIL THE BEND AT THE END.

To add to Ed Seykotas point, another legendary and extremely wealthy trader, Paul Tudor Jones said the following about trends in general, I believe the very best money is made at the market turns. Everyone says you get killed trying to pick tops and bottoms and you make all your money by playing the trend in the middle. Well for twelve years I have been missing the meat in the middle but I have made a lot of money at tops and bottoms.

Allow me to use the Newtons fundamental laws of motion to explain trends and what happens to them. These laws are easily found on Google. I just picked the first link on a google search

Newtons first law of motion:
Every object in a state of uniform motion tends to remain in that state of motion unless an external force is applied to it.

Newtons first law of motion adapted to Trends:
Every Trend in a state of uniform motion tends to remain in that state of motion until an external force (An opposing larger timeframe zone) is applied to it.

The reason a lot of traders say trade in the direction of the trend is because trends do obey this first law a trend will continue in its current direction hence the view that the trend is a friend.
A trend will continue in its current direction UNTIL the bend at the end comes when this trend reaches an opposing LARGER timeframe zone, for example, a downtrend on a weekly chart reaching a monthly demand zone; or a daily uptrend reaching a weekly supply zone.

So it is for this reason that it is critical that we know where THE BIGGER TIME FRAME LEVELS ARE before we go ahead to follow any trend and not just follow the trend blindly.

Newtons second law of motion:
The relationship between an object's mass m, its acceleration a, and the applied force F is F = ma

Newtons second law of motion adapted to Trends:
The force needed to stop and change a trend must be larger than the force available on the timeframe the trend is identified on. That force by definition can only come from a higher timeframe

To stop an uptrend, you need a mass of sellers and for there to be no more buyers (a loss of buying momentum).
We can only find enough of a mass of sellers on a timeframe higher than the one we are looking at the trend on

We assess momentum or acceleration using trend lines.
We do not assess Trend using trend lines

The combination of finding enough of a mass of sellers (arriving at the larger time frame supply zone), the lack of more buyers and the loss of momentum shown by a trend line break tells us that the trend is no longer up and may soon become down.

Newtons third law of motion:

For every action there is an equal and opposite reaction.

Newtons third law of motion adapted to trends: This is how sideways markets are born
For every wave of buying that there is an equal and opposite wave of selling for, we will have no overall movement, resulting in a sideways market

Hello everyone.

Speaking about the use of trend lines and the significance of trend line breaks in S.A.D

Best wishes