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  #7  
Old Jan 3, 2011 6:09pm
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Spot FX is the cash market OTC.

Level II and T&S are 2 parts from derivatives markets where you can get order flow information easier.

The global fx market is a bit more complicated if you're wanna measuring currency flow.

Only looking at charts and guessing here and there are sitting stops - it doesn't work like that.

There are lot of different stop hunting pattern because the participants act different in handling their weak positions if they are trapped.
You will never know where stops are and how far it needs to drive the price to liquidate that pool.

Stops get triggered all the time, that's nothing new.

It happens like you've said under or above consolidation pattern and even in that range.
But without statistical edge in knowing how big that pool is, it's an dangerous undertaking.
You're playing the breakout and suddenly you will become the prey.
A lot of traders call it false or "fake" breakouts.

So it's essential to know the size of that pool and how it could be hunted depending on the market condition.
Furthermore you have to identify which market participant is trapped and who is in control.
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  #78  
Old Jan 14, 2011 5:20am
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Think about global money/liquidity shifting.
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  #94  
Old Jan 15, 2011 6:46am
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If you can crack that code you will be able - with some practice - to "read" the intentions of the big players before price will move in that direction.
Triggering some stops is then just a byproduct.

Identifying the imbalance before the outcome occurs puts you in the first best seat.
It's also a kind of front running.
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  #207  
Old Jan 19, 2011 5:16pm
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A real hunt from today with stop liquidation:
Initiative move began with block orders backed up with hidden liquidity on the passive side:





How, when and why was it a stop hunting move instead of a regular up move.
Now it's your turn to find out.
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  #256  
Old Jan 20, 2011 1:16pm
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I think for the most this illustration is very confusing.

They're talking about vacuum or something like that.

If you're making a transaction size becomes known and MM are keeping records.
If you're building inventory within a (new) value zone, how would you do it?

Right, sucking in as many as possible.
It's the same if you're playing poker when raising inconspicuously with a very strong hand.

As a large participant you can risk it because of various reasons: better information or longer term investors are standing on the sideline.

The disequilibrium is developing over time and will be unloaded when the initiator decides to flush out the opponents.

That is the exact point when his money/liquidity will shift to the opposite active side.
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  #261  
Old Jan 20, 2011 2:11pm
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Guys,now you have a couple of useful things and posts to think about and to work with.
Do your homework.

This thread was interesting.

Good Luck!
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  #327  
Old Jan 22, 2011 3:18pm
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Still working the same questions?

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  #332  
Old Jan 22, 2011 3:48pm
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I don't coun't a price shift as a vacuum.
It is a time based process.
Either there is liquidity or not.
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  #334  
Old Jan 22, 2011 4:11pm
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That is your opinion.

For me a true vacuum is still the fact when at the same price level no seller and no buyer had been executed.

Otherwise it's a normal liquidity lack (either one side).
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  #353  
Old Jan 23, 2011 11:34am
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The good thing about algos is, if you know how they're working and looking for,you can front run them.
They are very dominat in the markets.
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  #411  
Old Jan 23, 2011 8:52pm
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In my opinion these fictitious positions from retail traders,who are trading with "bucketshops", don't provide an edge.

Hunters can only profit from weak hands in real markets.
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  #413  
Old Jan 23, 2011 9:03pm
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99% from the retail trades stay within the bucketshop and will never be routed to the real interbank market.
Therefore, in my opinion, their positions are nonsense.
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  #415  
Old Jan 23, 2011 9:27pm
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I say this:

a bucketshop always trades against it's clients.
Because the most traders are continuously on the wrong side and losing,there is no need to hedge anything.
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  #417  
Old Jan 23, 2011 10:06pm
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I don't know.

But i wouldn't do it - only under few exceptions.

I'm here to make money from my clients and letting the clients play against each other.

A quick question: if i'm buying 1 single unit, will Oanda hedge this position immediately on the interbank market?

Don't think so.
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  #419  
Old Jan 23, 2011 11:07pm
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Managing the net exposure from all transcations is another story.
Only Oanda knows.
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