Reply
More than 10 Vouchers
 
Thread Tools
  #340  
Old Jan 22, 2011 8:30pm
Member
 
Member Since Sep 2006
Default Darkstar piece of puzzle

true value is probably present value of what market price-in already about all known information. As trader we focus on what is not price-in to find divergence from that value. Hope i am wrong ... much unlearn process following darkstar post here

Last edited Jan 22, 2011 8:43pm | Reason: add comment and erase questions icon
Reply With Quote
  #342  
Old Jan 22, 2011 11:00pm
Member
 
Member Since Sep 2006
Default find on the net

Core Principles Regarding How Changes in Order Flow Affect Changes in Price:

  1. Price is always a function of Supply & Demand - Regardless of the market.
  2. Changes in Supply and/or Demand effect changes in Price.
  3. Changes in Order Flow precede changes in Price.
  4. Program Trading is the Primary Cause of changes in Supply & Demand.
  5. Buy order Usurp Supply - Thereby increasing price.
  6. Sell order Increase Supply - Thereby decreasing price.
  7. Increases in Price momentum will fade if they are not backed by substantive Program Trading
  8. As changes in Order Flow precede changes in Price, it is advisable to always enter each trade via a Stop, this way, Price activity confirms the Order Flow information. Long trades are entered via a Buy Stop one tick above the most recent pivot, and Short trades are entered via a Sell Stop one tick below the most recent pivot. If after a Long Entry Stop is place, price moves down and breaches the most recent low pivot, the Entry Stop is to be removed. If after a Short Entry Stop is placed, price moves upwards and breaches the most recent high pivot, the Entry Stop is to be removed.
  9. Software can monitor this activity in real-time thereby creating ongoing opportunities to follow and feast off of the Big Money just like a Pilot Fish follows and feasts off of a Shark.
  10. 'Smart Money' really does exist. For Smart Money to profit from their insight, they must trade. When they trade in an electronic market, their transactions get recorded in real-time. Thus, they leave a footprint that can be monitored.
  11. Stop Losses are the bread and butter of short-term algorithmic trading shops. They 'know' where the stops are and can fire off Program Trades with sufficient force to trigger a bucket of stops. By doing this they create immediate liquidity which allows them to close out their positions.
  12. You can increase percentage of winning trades by incorporating Order Flow monitoring and interpretation into your analysis... by having the real-time information which offers the ability and skill to never fight the tape.

Last edited Jan 22, 2011 11:24pm | Reason: editing sentences
Reply With Quote
  #477  
Old Jan 30, 2011 10:29pm
Member
 
Member Since Sep 2006
Default

some stuff about trader style
Attached Files
File Type: pdf zerosum.pdf (80.3 KB, 344 views)
Reply With Quote
Reply

2 Traders Viewing This Thread (1 member)
InvisibleMore than 10 Vouchers
Thread Tools


Similar Threads
Thread Thread Starter Forum Replies Last Post
order flow Statistics on FF Isotonic Trading Discussion 40 Jun 6, 2011 11:28am
Order Flow ssteiner87 Trading Discussion 25 Feb 8, 2011 9:21pm
365 Trade: Finding the Flow Sifu Rookie Discussion 11 Mar 25, 2009 8:44pm
order flow Ricardo. Rookie Discussion 5 Aug 29, 2008 2:54pm
Order flow randomlight Trading Discussion 7 Feb 19, 2007 10:42am