Keep studying man..I'm doing the same thing. The one common link that connects these orderflow guys is a strong understanding for market microstructure. They know all the little intricacies that a lot of us dismiss as un-important. Obviously we have some learning to do. Gaston said once, that all the information we need is out there, we just need to dig for it a little. I ordered a book that both Gaston and Darkstar both mention, it's called "market microstructure for practitioners" by a guy named Larry Harris. It was a cool 50 bucks, but totally...
A thought on this: People often try to identify where S/R is and place their orders there as if they are betting price will or will not pass the S/R. Thats almost a 50/50 game of chance. I dont think thats how S/R should be thought of. Rather i think it could be smarter to enter once you are certain price has past that S/R area or been rejected by it, like skfx showed in one of his charts, this one:
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It's easy after the fact to see which way to have traded a S/R. That was a 4hour chart and the move before the fake break was a successful bounce. Then if one had traded the breakout, they'd have lost. How many pips past S/R did it go, 50? Where is the point that we know if it's going to be a bounce or breakout? It's so subjective. No-Brainer Trades is a great thread for S/R trading.
Yes the pip distance would be one thing to look at, and perhaps also engulfing, perhaps also how fast its doing that meaning it might be an idea to look at say maybe M5 or so. Thats just a guess. And i agree its so subjective, if it was not all prices would be fixed forever.
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One of those posts that make me smile and realize "somebody out there gets it".
You are spot on especially about orderflow being a way of thinking about the market instead of a trading method (which is what most think). It's a mindset game. Sort of like poker in that sense, I guess, though this is a bigger and more complicated environment.
Needless to say, I can confirm this as well:
Even though it is a mindset and lets suppose it is, the thread about it, in my mind, produces little quantifiable stuff i can work with day to day. I need a spot to enter and i need a spot to exit. If i see that i can learn the mindset. If i dont see that i see words on a screen, and if im going to translate that into a chart a lot will be lost in translation. So to me a chart speaks its own quantifiable language and supposing we are trading a chart, thats the adequate language. Blue is S/R, red is S/D. Channel is nice for entry once it bounced there and gets cought in the MAs, then there is a good chance it will get back a little in the direction it touched the channel. But all that you can see from looking at the chart.
I need something that at least resembles this in some way:
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Actually trendlines and orderflow if we talk supply/demand stuff is very connected. Even to Fib i suspect.
Yupp, cause its all the same thing we are talking about no matter what we are saying, one person doesnt trade one price while another trades his own, we trade the same price!
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