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  #805  
Old Jun 17, 2010 3:44pm
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When you want to know what is going on behind the chart you have to understand how institutions trade big sizes over time.

I won't show how i spot institutional orderflow but here is a cause for thought:

http://corp.bankofamerica.com/public...ets/agencyalgo
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  #844  
Old Jun 22, 2010 7:37pm
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Have analyzed some trades from woo.

He definitely does not trade on institutional benchmarks or on advantageous prices even some trades were nice.

So it must be another orderflow he thinks looking at.
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  #880  
Old Jun 24, 2010 11:01am
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Some guys only use Level II without charts and make money by reading order flow.

But the real interesting thing is this: where are the dynamic levels on which institutions execute orders over the hole day depending on the time-frame.

Institutions don't have magic tools.
They constantly analyze volume and volatility to relatively sell high and buy low (for the most time, during extrem volatile market conditions it's a bit different).
That is why algos come into play.

If you can monitor it (it is possible), you can be one of the first before the move starts.
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  #918  
Old Jul 6, 2010 1:46pm
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Quote:
Originally Posted by Pdat100 View Post
In my eyes, there are actually two questions: The first is the one most dealt with here, how do we recognize the move with or without access to the tape?
By monitoring/calculating inst. benchmarks on different time periods.
Here you can see their intentions on specific dynamic price levels.
And that is where you also want jump on.

Quote:
Originally Posted by Pdat100 View Post
And, second, once recognized (we can't know how deep is the iceberg), are we to stay out of the market or try to fade/shade - as the maneuver can sometimes be fast and sharp and other times long and persistent. Now, here's the thing, even if you recognized the iceberg, you would still need to assess its impact on price (PA). Actually I would argue that this is the more complex question.
The procedure is:
if the institution(s) want buy f.e. the YEN and have a deadline (3 hours) for order execution, it can go like that:

enough liquidity available: normal price impact,smooth price action/impact
less liquidity: price rallys,orders get executed more often on smaller time periods

Quote:
Originally Posted by Pdat100 View Post
In fact, same goes for options expiration plays. If only one side drives the price (to or away from the strike price) that would have been easy. Alas, in practice, what you see around the strike areas is a fight between two or more elephants. How can anyone know in advance which side is to prevail?
I don't watch options.

Quote:
Originally Posted by Pdat100 View Post
I would argue that this is the more important issue: a solid set of criteria to assess an institutional move impact on price.

Are we back in VSA realm or what?
No VSA.
You mostly don't get favorable prices because the move has already started.
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  #920  
Old Jul 6, 2010 3:01pm
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The most common is f.e. VWAP
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  #923  
Old Jul 7, 2010 1:57am
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VWAP is a calculation formula on volume & time period.


Seeing the levels (if there sits demand or supply) is a good advantage when having aggregated market depth view and how price reacts.
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  #927  
Old Jul 7, 2010 2:25pm
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Yes some banks pick off arbitrage opportunities between interdealer venues or by offering different spreads to customers.

It lasts so long till there can made a quick profit.
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  #931  
Old Jul 9, 2010 4:47pm
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a)

"many" sellers come in and short market at some price levels but the supply on the offer is "weak" or fades away:
it doesn't need a lot of money to push the market higher and to trigger stops: price rallys and the pros can unload their positions

b)

when supply dominates the market and a/more market participants decide to buy on a bid level:

on the tape the "big" position is surrounded by much smaller positions: if the big boys take that level out,price falls and trigger stops
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