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Order Flow - Finding cluster of stops on chart
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Jan 5, 2011 6:59pm
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Originally Posted by Carnegie if you don't learn the simplest concept of WHY PRICE MOVES.. Every single system will fail in your hands. | You're certainly proceeding in a way that will spell success.
Nineteen years of age? Pretty impressive, my friend!
Keep at it. | 
Jan 6, 2011 2:06pm
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Originally Posted by Adal You can see some BEAUTIFUL stop hunts going on (the price attacks the thick red/green line which are clustered orders) | It's a nicely made video. Thanks for sharing it. It really shows you how banks of orders are eaten up for breakfast with no problem at all. People around here should be a bit more aware of it before placing as much dependency as they do on "S/R". These are, quite literally the food/fuel of the market.
I do have to say though that IMO this activity doesn't really represent "stop hunting" (say, by a single party) as it is normally thought of. Unless you consider the normal facilitation of trade by the market to be nothing but the hunting of stops. Then, I would agree - the orders are just fuel for the fire.
Let's "eat some breakfast"!  | 
Jan 10, 2011 4:04pm
|  | ~~~~~~~~~ | | | | It's great to see the discussion here get into the actual, normal functioning of the market - i.e. the offering and absorbing of liquidity - and the clustering of this supply and demand (again: of liquidity). Not just the same tired and paranoid rhetoric about having your stops hunted.
Following along with and trading along with the healthy appetites of liquidity takers, while they remain hungry. Using recent balance-of-power (pivotal) areas to see who's chewing though who's orders and positions. That's a way of viewing market activity that works for me - of course, it will forever be a work in progress.
Thanks for the great posts, guys!
P.S. With this post, I will bring back my liquidity-consuming pac men avatar!  | 
Jan 12, 2011 1:02pm
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Originally Posted by Carnegie What exactly are these "pivotal" areas? | These are the prices that the market found the liquidity that it was looking for thus, causing price movement to halt. The amount that was encountered is shown by the price movement back the other way. I myself just watch the market as it goes to see where they end up showing themselves. Mathematically calculated pivots?  Not for me. Of course, they are used by many.
None of this is really "Order Flow" though, right? Just kind of the "flow" part. Oh well, we've got to work with what we have!
...and here I will change my avatar to: "market searching for liquidity". | 
Jan 14, 2011 5:09am
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Originally Posted by Carnegie Oh and BTW. I just go my Trading & Exchanges book  | ... and the weekend is coming up. Perfect timing!
It's been a good thread this week.
Many thanks, people! | 
Jan 14, 2011 2:16pm
|  | ~~~~~~~~~ | | | | Trouble Brewing? IMO the more you try and turn what's being discussed (loosely) here into a pattern search - you start drifting off course.
Let's look at what IMO drifting completely off course would be:
(Static, hopeful, lazy mindset)
Identify a particular pattern.
Predict the future, place your trade and cross your fingers.
In contrast to:
(Actively engaged, aware of change, working mindset)
Working toward developing a market generated feed-back oriented view of the market.
Placing your trades within a discerned condition and holding, adding, exiting based on unfolding market activity. Knowing only that present conditions will change.
That's trading IMO.
Sorry, that it has absolutely nothing to do with knowing, in advance, where clusters of stops are or knowing, in advance where stops are resting or knowing, in advance when/where market orders will come pouring in.
Edit: Fuck, I hope that no one reads into my post that I'm saying they're being lazy. Being misunderstood is a lot easier than being understood when you post. That's for sure. LOL! Oh well.
Last edited Jan 14, 2011 2:40pm
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Jan 18, 2011 3:09pm
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Originally Posted by Carnegie I wanted this thread to still be active with IDEAS about order flow stop hunting.
Please stick to the subject. | Well, it's kind of impossible for the thread not to explore different possibilities. That's because the thread is leaving both components of the subject - order flow and stop hunting - up to the individual posters to define.
If you get more specific with definitions then, maybe the replies will be more helpful. What you may find though, is that both of these things are only able to be inferred and subjectively interpreted for us retail traders with broker provided data. Doesn't make info here useless IMO but, (surprise!) it may not reveal a Grail. Quote:
Originally Posted by robdee Therefore in my mind 'volume' and 'order flow' are closely related. | Yeah, I mean when you remove Volume as a component of Order Flow then, you might want to call it something else. | 
Jan 19, 2011 8:54pm
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Originally Posted by scott89 I wanted to thank you, because you are ruining my University studies for this | Ha!  | 
Jan 22, 2011 2:31pm
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Originally Posted by Deevz Id tend to disagree here. A currency has the utility of allowing me to buy things. Good luck purchasing foreign goods if you don't have the right currency! An option has the utility of hedging me against risk, reducing the volatility of my speculative portfolio. Same for futures, which producers can use to hedge against price variations. All those securities have their utility.
If I need the utility those securities provide, then I might buy it even if it is overpriced. | If I could respond, just to test my understanding.
I think that he is saying that spot currencies lack demand at efficient value because they are traded for their inefficiencies - movements away from value.
I wonder though, how is that different from any market? I mean, yeah, you'll have prices where the market is temporarily efficient, satisfying both buyers and sellers. The larger market forces will most always be on the fringes though waiting for deviation, right? I guess I'm missing something.
Thanks for the great thread! Nice weekend food for thought! 
Last edited Jan 22, 2011 2:54pm
| Reason: grammar :P
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Jan 22, 2011 3:03pm
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Originally Posted by Adal the 2% of volume which is non-speculative | Yeah, the 800 lb. gorilla, or should I say "swan"? :P | 
Jan 22, 2011 5:47pm
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Originally Posted by Deevz I don't know if such a situation can occur in a realistic scenario tho... If there are a lot of liquidity seekers, the liquidity should usually withdraw itself, unless it's liquidity provided by uninformed traders.
Not sure why we are talking about this tho, it feels like running in circles. Sorry if I started it XD. | I think that it can and does occur all of the time - normal operating procedure.
Liquidity provided by uninformed traders gets chewed up before they (re)move it? Sure. All of the time. You know, I think that I've been among those liquidity providers on more than one occasion.
Your discussion is on topic IMO. Running in circles a bit but, no problem.  |  | |
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