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  #93  
Old Jan 14, 2011 11:52pm
robdee's Avatar
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Arrow Visualising Popular Stop Clusters on a Chart

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Originally Posted by Carnegie View Post
What this boils down to is really my question, is there any way of localizing where the orders MOST LIKELY will be ON A CHART?
Carnegie, I like your question. Developing the ability to visualise stops in 'clusters' in a measurable and consistent way is a very useful goal.

One thing I look for is an accumulation of stops above retraces in a downtrend.

For example when price action is making lower lows and lower highs then it is safe to assume that traders who are in profit are motivated to protect their profits by moving stops down with each lower high.

When the distance between the 'lower highs' is more significant (say 150-200 pips) then the profitable short traders are more motivated and more likely to move their stops down to one of these significantly lower levels.

This leads me to the idea of popular stop levels.

A popular stop level is protecting significant profits. Trailing stops placed above recent highs after a significant price drop - or the opposite - trailing stops placed below recent lows following a significant price increase.

My chart below shows how I visualise popular stop cluster levels.
Click image for larger version

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  #137  
Old Jan 18, 2011 2:38pm
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Question A definition of Order Flow ?

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Originally Posted by Carnegie View Post
I wanted this thread to still be active with IDEAS about order flow stop hunting...
This term 'order flow' is not clearly defined imo. I assumed it meant the effect of orders coming into (or being removed from) the market. Therefore in my mind 'volume' and 'order flow' are closely related. Hence the relevance of VSA techniques to illuminate the underlying flow of orders.

However, with Carnegie's request to not confuse this thread with VSA I'm pretty sure I'm not understanding the term 'order flow' or 'order flow stop hunting' in the context of this thread.

Please can anyone provide a definition of order flow to make it distinct and separate from VSA ?
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