It is not flawed, it only represents liquidity supply. Stops represent demand for liquidity and in this model they could be a part of the force making the shift. To make it simple just keep in mind that everything to the left from the current price ...

Order Flow - Achieving the mindset

Stop orders consume liquidity, limits provide it. The curve represents liquidity, so there are no stops here. Sometimes stops are called limits and this brings confusion.

Order Flow - Achieving the mindset

No problem, the only thing chriskins got wrong is that there are no stop orders in this curve.

Order Flow - Achieving the mindset

It was all explained by DS in the previous thread. MM - market maker Pending - limit orders in the book Latent - additional liquidity that will be available should the price get to the level Tech - limit orders by tech traders, they are not ...

Order Flow - Achieving the mindset

Most probably BOJ intervention

Order Flow - Achieving the mindset

@ DS: In order to "deconstruct the logic of participants" you need to know the actions of these participants. Where do you get that info from? IFR?

Order Flow - Finding cluster of stops on chart

I guess Darkstar was trying to say that even after retail traders disappear there still will be uninformed traders. Do you think all that trap thing is designed purely for retail crowd? There's still a lot of automated trading going on and it's ...

Order Flow - Finding cluster of stops on chart

If you believe the commodity is undervalued and big players are running for stops to load up their inventory this could be swing to long-term order flow trading.

Order Flow - Finding cluster of stops on chart

I knew of this phenomena from charts, just didn't know how it's related to order flow.

Order Flow - Finding cluster of stops on chart

What I will say here is not directly related to finding stops but it's about orderflow. I'm reading Master the Markets by Tom Williams and here's how he explains why previous ranges act as supply zones in stock market. Lets say the market formed a ...

Order Flow - Finding cluster of stops on chart

Exactly. Finding the "true value" is what fundamentalists are trying to do. Finding the perceived value is the function of the market itself.

Order Flow - Finding cluster of stops on chart

You can't compare individual trader with small accounts to hedge funds with huge accounts. You can return 1000% on a 10k account because the market is huge compared to your account. It's a zero sum game so you have a lot of big and small accounts ...

Why do hedge funds have such poor returns compared to successful retail traders?

I wasn't trying to quantify volatility, just showing that it is directly proportional to liquidity demand and inversely proportional to liquidity supply.

volatility trading

POC is supposed to show where most trading has occured during the day. As the markets become thin there's not much action and the chart simply prints more "unnecessary" 5min bars in the same range. So what I would suggest is using futures volume ...

Auction Market Theory and Market Profile

Don't forget that in markets there are two kinds of demand and supply - active and passive. Passive is represented by liquidity. Limit sell orders above the current price are passive supply, limit buy orders below current price are passive demand. ...

Order Flow - Finding cluster of stops on chart

Volatility = Liquidity Demand / Liquidity Supply

volatility trading

You can't imagine how many people here wish they were your girlfriend.

Order Flow - Finding cluster of stops on chart

Now all we have to do is find the fundamental value of the pair (which we don't even need to discuss since everyone can do it) and just fade any disbalances of price and fundamental value into the direction of the value (ok, I'm kidding, it's the ...

Order Flow - Finding cluster of stops on chart

Important it is. I didn't say its not important, I said it's nothing new, I always fade (thanks to your valuable posts btw . The trick is that fading alone is not a strategy, you need to know when and where to fade. Fading the stops is a good way ...

Order Flow - Finding cluster of stops on chart

Good illustration but it's nothing new to me. The only implication i come up with is that fading is the best strategy.

Order Flow - Finding cluster of stops on chart