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Trading Institutional Order Flow

  • #1,581
  • Nov 19, 2016 5:15am Nov 19, 2016 5:15am
Hi Tradewarriors ) Pretty good SZ on USDJPY D1 . But DXY so strong now , I think this SZ will be broken. Any thoughts about this situation ?
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  • #1,582
  • Nov 19, 2016 8:34am Nov 19, 2016 8:34am
Quoting swTrue
{quote} Would you consider this reasonable confirmation or would you be looking for more...? {image}
Hello swTrue
I encourage the use of Multiple timeframe views of the market because that is how i make the trading decisions I use.
I am not sure which multiple time frame sequence you have used to arrive at the trading idea of buying the Euro.

However, in more general terms the decision about taking a confirmation trade or a set and forget are different depending a few factors
especially profit margin, distance between zones and the size of the zone in question.

In this case, going with the assumption the 4hr chart is the entry chart then some S.A.D traders would already be long in the trade
Others would be waiting for the end of momentum to show whilst others would want the nearest supply zone removed.
It is quite individualistic. One of the strong points of the methodology.

best wishes
Be careful what you think because your thoughts run your life..Solomon
  • #1,583
  • Nov 19, 2016 8:41am Nov 19, 2016 8:41am
Quoting Ajay999
Hi Tradewarriors ) Pretty good SZ on USDJPY D1 . But DXY so strong now , I think this SZ will be broken. Any thoughts about this situation ? {image} {image}
Hello Ajay999
Thank you very much for bringing this up
It is useful for S.A.D who look at or consider correlations in their trading

It is important to compare time frames similar to each other.
You see, the consideration for a trade on the usd/jpy for a day trader will not depend on a monthly chart of the DXY
The day trader is more concerned with short term trades and so the monthly would be too big a time frame
So if for example, the DXY is also in a daily Supply zone, even though it is overall quite "strong", it may still have a
temporary stall, enough for a short term trader to make his trade easily

best wishes
Be careful what you think because your thoughts run your life..Solomon
  • #1,584
  • Nov 19, 2016 11:10am Nov 19, 2016 11:10am
Quoting Akt
{quote} Hello Ajay999 Thank you very much for bringing this up It is useful for S.A.D who look at or consider correlations in their trading It is important to compare time frames similar to each other. You see, the consideration for a trade on the usd/jpy for a day trader will not depend on a monthly chart of the DXY The day trader is more concerned with short term trades and so the monthly would be too big a time frame So if for example, the DXY is also in a daily Supply zone, even though it is overall quite "strong", it may still have a temporary...
Thanks , now I see my mistake. So , I looked at the daily DXY and saw a similar picture - no any SZ on the way. Сan I assume that a SZ ( on usdjpy D1 chart ) a weak area. Sorry to intrude , just want to understand. I really liked this method of analysis. Thanks a lot for the helping all of us.
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  • #1,585
  • Nov 19, 2016 3:05pm Nov 19, 2016 3:05pm
Hello again :-)),

I have a chart, AUDJPY. I wonder if the current supply zone may be considered a zone. This zone took out Demand zone in left (currently taken out few pips, but if dont, may by considered ?)
I hope you understand me :-)) and thank you, I appreciate it

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English is not my native language
  • #1,586
  • Nov 19, 2016 3:38pm Nov 19, 2016 3:38pm
Hi guys, trading oportunity for next week on AUD/CAD. Price now returning at fresh weekly demand zone, but no autentical.

Weekly
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Daily
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  • #1,587
  • Nov 20, 2016 3:25am Nov 20, 2016 3:25am
Quoting Michele86
Hi guys, trading oportunity for next week on AUD/CAD. Price now returning at fresh weekly demand zone, but no autentical. Weekly {image} Daily {image}
Be careful of the strength of the bearish candles...they have momentum so its possible they may blow thru....watch and wait let the market tell you...do not try and predict
  • #1,588
  • Nov 20, 2016 4:19am Nov 20, 2016 4:19am
NZD/CAD top down

Weekly DZ has been broken by last weeks candle.
There is room till the next fresh weekly demand zone.
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Daily trend is down. Supply zones are being created and respected.
The momentum is down as well.
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I look for short opportunities at 4hr SZ's.
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  • #1,589
  • Nov 20, 2016 5:26am Nov 20, 2016 5:26am
Does anyone here trade SILVER?

Price is low at the weekly curve. I start looking for buy opportunties.
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Daily: Price is at a RBR Demand zone, inside weekly demand. At this time I prefer to see a removal of daily supply first, before I go long.
This is because the trend and momentum are strong to the downside.
When price reaches the lower daily DZ, I want to look for a set and forget if the approach is good.
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  • #1,590
  • Nov 20, 2016 5:31am Nov 20, 2016 5:31am
Quoting Pipsalon
Does anyone here trade SILVER? Price is low at the weekly curve. I start looking for buy opportunties.{image} Daily: Price is at a RBR Demand zone, inside weekly demand. At this time I prefer to see a removal of daily supply first, before I go long. This is because the trend and momentum are strong to the downside. When price reaches the lower daily DZ, I want to look for a set and forget if the approach is good.{image}
Hello Pipsalon
Nice work. I concur

best wishes
Be careful what you think because your thoughts run your life..Solomon
  • #1,591
  • Nov 20, 2016 6:05am Nov 20, 2016 6:05am
Quoting quieTrader
Hello again :-)), I have a chart, AUDJPY. I wonder if the current supply zone may be considered a zone. This zone took out Demand zone in left (currently taken out few pips, but if dont, may by considered ?) I hope you understand me :-)) and thank you, I appreciate it {image}
Hello quietrader
Thank you for the question on AUDJPY.
Please see below

best wishes
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Be careful what you think because your thoughts run your life..Solomon
  • #1,592
  • Nov 20, 2016 6:09am Nov 20, 2016 6:09am
Quoting Michele86
Hi guys, trading oportunity for next week on AUD/CAD. Price now returning at fresh weekly demand zone, but no autentical. Weekly {image} Daily {image}
Hello Michele86
Thank you for sharing your thoughts on the AUD/CAD
Watch the profit margin for longer term trades
Daytrades should be possible but will require further analysis next week

best wishes
Be careful what you think because your thoughts run your life..Solomon
  • #1,593
  • Edited 10:17am Nov 20, 2016 10:01am | Edited 10:17am
Hi,
almost all Pound pairs are now in weekly supply CP pattern, AKT what do you mean? GBPCAD last week a similar pattern...
  • #1,594
  • Nov 20, 2016 10:07am Nov 20, 2016 10:07am
Quoting Akt
{quote} Hello quietrader Thank you for the question on AUDJPY. Please see below best wishes{image}
Make sense. I use only a level which eliminated the opposing level, right? or, why circle area is not considered a level?
thanks again
English is not my native language
  • #1,595
  • Nov 20, 2016 10:50am Nov 20, 2016 10:50am
Quoting Michele86
Hi, almost all Pound pairs are now in weekly supply CP pattern, AKT what do you mean? GBPCAD last week a similar pattern...
Hi Michele86.
You are correct
What now remains is to decide if there i enough profit margin for the types of trades you are considering,
whether day trades or more longer term ones
Like you said, GBPCAD has reacted as expected. Now an entry is what is needed for those not already short

best wishes
Be careful what you think because your thoughts run your life..Solomon
  • #1,596
  • Nov 20, 2016 10:51am Nov 20, 2016 10:51am
Quoting quieTrader
{quote} Make sense. I use only a level which eliminated the opposing level, right? or, why circle area is not considered a level? thanks again
Hello quietrader

that wick to the upside makes the level structurally poor.

best wishes
Be careful what you think because your thoughts run your life..Solomon
  • #1,597
  • Nov 20, 2016 12:21pm Nov 20, 2016 12:21pm
I'd like clarification as far as what it takes to create a zone. Most of the time it seems a zone must take out an opposing zone to become a true zone. Then sometimes it has to break a trend/momentum line to become a zone. But then on post #783

"Supply as defined in the methodology is a range of price out of which price emerges with a significant decrease in the value of the asset. We define trade-able supply as that with a move of at least 2X the size of the price range from which it felt. Anything less than that is considered inadequate or riskier. Demand on the other hand is defined as a range of price out of which price emerges with a significant increase in the value of the asset. By significant, again we refer to the requirement for a move that is at least 2X the size of the zone."

So based on this it's based on the move being twice the range of the range/consolidation or "base" I believe you could call it.

If a zone does have to take out an opposing zone to be a zone, then you're always looking back to the left to make sure the zone, took a zone that took a zone etc.

Edit: Just to clarify, I realize the SZ are sellers and DZ buyers, the lines/arrows on the chart weren't initially lined up with the "DZ/SZ" in the sentence.
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  • #1,598
  • Nov 20, 2016 1:14pm Nov 20, 2016 1:14pm
Also to clarify "the curve"...this is the distance between the nearest SD and DZ on the largest time frame, correct?

Why is this refrrred to as curve?
  • #1,599
  • Nov 20, 2016 1:41pm Nov 20, 2016 1:41pm
Quoting swTrue
I'd like clarification as far as what it takes to create a zone. Most of the time it seems a zone must take out an opposing zone to become a true zone. Then sometimes it has to break a trend/momentum line to become a zone. But then on post #783 "Supply as defined in the methodology is a range of price out of which price emerges with a significant decrease in the value of the asset. We define trade-able supply as that with a move of at least 2X the size of the price range from which it felt. Anything less than that is considered inadequate or riskier....
Good evening swTrue,

You are correct, there are different ways a zone is being created.
-Break of a momentum line.
-Removal of an opposing zone.
-Move away from the basing.

A zone can inherit it's status from another zone. In your example the lower demand zone inherited it's status from the higher DZ which removed a supply level.
Please make sure when you post a chart example, that you draw the zones correct. Some of the green boxes you have drawn are incorrect.

Best wishes.
  • #1,600
  • Nov 20, 2016 1:44pm Nov 20, 2016 1:44pm
Quoting swTrue
Also to clarify "the curve"...this is the distance between the nearest SD and DZ on the largest time frame, correct? Why is this refrrred to as curve?
Exactly, your curve timeframe is the largest timeframe in your sequence. You want to look for selling opportunities high on the curve. And buying opportunities low on the curve.
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