I think so too. On smaller timeframes these are dealers liquidating inventories, on bigger it's traders with paper loss.

Order Flow - Achieving the mindset

Fade = enter against the direction of the price

Order Flow - Achieving the mindset

Well, the question is twofold. It's better to think about it in terms of liquidity and order flow. If you remember Darkstar's liquidity diagram it shows a liquidity gap after a price move. This gap then gets filled with new liquidity. But imagine a ...

Order Flow - Achieving the mindset

Why not fade the same levels again? The market doesn't care if you've done them before. I remember that usdchf option, i think i faded that spike.

Order Flow - Achieving the mindset

Yeah, I'm helping those hedgers.

Order Flow - Achieving the mindset

Sweet thread, DS. Are those 5 min bars?

Order Flow - Achieving the mindset

It's oil.

Order Flow - Achieving the mindset

Never heard of the time machine? All great traders use it.

Smexy Trades

Well it's probably informative if you like to know some details of how the bailout process unfolded. What I didn't like is that they show only the bright side - heros saving the world from the great collapse - and nothing about the causes of the ...

Order Flow - Achieving the mindset

Excellent, Monroe! I've just seen Inside Job. Great movie compared to HBO crap Too Big To Fail. If you know the housing bubble is going to collapse but don't have the adequate instruments to capitalize on it then you just need to create ...

Order Flow - Achieving the mindset

Looks like I was right about using risk reversals in the same way as COT report. Maybe just a coincidence.

Order Flow - Achieving the mindset

Thanks, Adal. Monroe, you make a good point about options hedging. I think hedging actually takes a bigger part of options trading. Anyway, in order to use this info I first need to understand options. What Adal says seems understandable but ...

Order Flow - Achieving the mindset

From Investopedia: Risk reversal refers to the manner in which similar out-of-the-money call and put options, usually FX options, are quoted by dealers. Instead of quoting these options' prices, dealers quote their volatility. The greater the demand ...

Order Flow - Achieving the mindset

Lets just say that order flow trading is more than just failed pattern trading. Guys, do you think yesterdays announcement of banks stress tests had any affect on the markets? In order for banks to keep solvent and pass those tests annually they'll ...

Order Flow - Achieving the mindset

Looks like its going to 4350 tech support.

Order Flow - Achieving the mindset

Would you share that read on SNB?

Order Flow - Achieving the mindset

I appreciate that, Monroe. I'm really enjoying following your thoughts.

Order Flow - Achieving the mindset

Ok, fine. I'm withdrawing my bid at 2150 and leaving the one at 2100.

Order Flow - Achieving the mindset

I can't imagine how you can follow both IFR and forexlive, man. I simply have no time for it. I meant shorting CHF.

Order Flow - Achieving the mindset

Yes, I was also thinking about EURCHF. 2150/00 should be good to enter.

Order Flow - Achieving the mindset