Quote:
Originally Posted by LasVahGoose My interpretation is that looking at the market in terms of Order Flow is that its a filter and/or lens to see the market closer to the reality of what it is.
Secondly, understanding Order Flow gives you a head start in the trade so-to-speak and allows you to position yourself at a better price with less chance of price moving against you.... |
Maybe we are looking at this issue from 2 different perspecitve. It seems you focused more about the mechanism of the market, while I concerned whether this is an exploitable inefficiancy.
e.g: An asian sovereign is reported been a heavier bidder for EUR/USD around 1.4500, and the price currently print at 1.4615. What you gonna to do? For a orderflow trader, he maybe join this and targeting 1.4550 for a quick buck. While the mid-term trader would see 1.4550 as a good adding entry and probably doesn't know anything about the sort of sovereign thing just stick to his marco analysis. The market serves them both good.
However the market is huge and volatile, what about the importers are happily hoarding the dollar in the above case? That's why DarkStar emphasized the "psychologic issue" is his post. If this is an exploitable inefficiancy, why do hell need the mental therapy just go with sound money management.
Regards,
Zkf