wow a great thread..
this thread has truly been great i still seem to have great diffulty adapting this method to trade chartless like gaston or some of the others do
ok so il list some of the few things i know:
1.these orderflow traders seem to be "snipers" - they take a handfull (<5) trades per month wich they seem to deem EXTREMELY high probability. This strongly echoes some other very respected traders in this forum ( mainly james) who say to be EXTREMELY PICKY.
2. another common thread among the PA and orderflow guys is that they know WHERE to trade. PA guys call it support and resistance and orderflow folk call it locations of high order accumulation and fear. these are both the same thing but what is important is that they are levels of historical significance that are likely to invoke a reaction(be noticed) by the big boys
3.volume and OI - i see no problem using these figures form the futures markets even though they are sample volumes and oi and not the whole picture. i mean even the presidential polls are just samples and do not poll the whole country lol.
theoreticly you could trade this information without a chart..
1. If a market is rising towards a historicly relevant resistance with decreasing volume and OI, we can say that the market is weakening and likely topping and this is a good place for a short. and vice versa
however i am murky about were i would place stops entries and Tp in such a situation which makes it a bitshaky in my mind..
the solution to this would be to use price action to confirm OI/ volume moves: ie
IF
1. price is at resistance
2.volume and OI signal a weakening / bearish market
3.u get PA
4. possibly even divergence
THEN: u have a high probabilty chance to success
however sk said in one of the first posts that SPEED is important
":"Am i good enough to adapt by increasing the SPEED at which i process orderflow?" That's your edge once you 'understand'.It's the SPEED at which you PROCESS ORDERFLOW."
waiting for PA confirmation seems to directly contradict this speed criteria..
oi my head hurts |