I feel like we still haven't dug into Darkstar's post enough, especially the parts I quoted below.
Like DS said, he already knows what the finished puzzle looks like, and he gave us a hint, so let's try to understand his post. I've been racking my brain and feel like I'm at a brick wall. If anyone has additional thoughts, please chime in. Here are my thoughts:
Quote:
Originally Posted by Darkstar Think about how price change and the distribution of liquidity interact. Your looking for a disequilibrium in that distribution which should give you a highly predictable outcome. |
The disequilibrium in distribution of liquidity means that there are traders out there who demand liquidity and traders who are willing to supply liquidity, but they haven't found each other, yet. The "highly predictable outcome" is a price movement to an area of high liquidity (the people who are demanding liquidity push price to an area where liquidity is being supplied).
Quote:
Originally Posted by Darkstar Trade with the anticipation of that outcome and you have the makings of a high probability system. |
In order to "trade with anticipation of that outcome" we have to be able to identify the disequilibrium
before the "highly predictable outcome" occurs.
This is where I'm stuck. How do we identify the disequilibrium before the "highly predictable outcome" occurs?
If any of you guys/girls have thoughts, please post them. And those of you who already know what the finished puzzle looks like, if you would be so kind to let me know if I'm wrong in any of my thinking, I would greatly appreciate it.
Darkstar says we're close to figuring out the stop hunting part, so let's keep thinking and we'll get there!