OK, so in hindsight my ipod example was pretty shitty. The point I was trying to make was that at the equilibrium value transaction volume will be much lower then it would be at a divergence from that value. This happens because the utility of a ...

Order Flow - Finding cluster of stops on chart

That would definitly create inefficiency. The more important question is, why would you assume the gap would be filled with new limit orders? Your on the list. It is. Thats really what the liquidity distribution model is supposed to be used for. ...

Order Flow - Finding cluster of stops on chart

For my one quick post today... The vacuum as I presented it does exist but it's on very short timescales. 1-3 seconds usually... never more then a few minutes. The market isn't THAT inefficient. The vacuum on its own isn't an exploitable ...

Order Flow - Finding cluster of stops on chart

OK, so I have a fuckton of writing to do today (thanks for all your input BTW) but I can hammer out a quick post this morning... I don't really think any of you are lazy... I needed to motivate "someoen" to respond to the chart and I figured calling ...

Order Flow - Finding cluster of stops on chart

Well, in or out of context, it's going to be hard to compete with the one I have. image

Order Flow - Finding cluster of stops on chart

And thats just one factor that can be analyzed with this model. Think about how a large order hitting the book would alter the profile... or what happens pre/post news events.. or how a fast price change would interact with the slow conversion of ...

Order Flow - Finding cluster of stops on chart

All things in due time my friend. Look, I know you guys are trying to figure this stuff out and I have to say, I'm really impressed with how far you have gotten. I'm sure it would make an untold number of people happy if I would just come out and ...

Order Flow - Finding cluster of stops on chart

hmmm.. sorta... since you've all been very helpful, i'll give you some insight.

Order Flow - Finding cluster of stops on chart

Close enough... latent becomes both market AND limit orders, but the bold was what I was looking for. Thanks kids. BTW- you should now have everything you need to work out the liquidity disequilibrium problem.

Order Flow - Finding cluster of stops on chart

Yeah in hindsight, red was probably not the best color. You have it correct.

Order Flow - Finding cluster of stops on chart

Seems like a pretty important implication to me. Why so quick to disqualify that answer?

Order Flow - Finding cluster of stops on chart

Depends... Who does the latent demand represent? It isn't tech because they are already represented.

Order Flow - Finding cluster of stops on chart

BTW... did you notice the shift of latent demand to pending?

Order Flow - Finding cluster of stops on chart

Good. Now what is the implication?

Order Flow - Finding cluster of stops on chart

Sigh... How about now? NOTE:// Think about how price and liquidity interact across time. NOTE2:// I'm not putting this up here for the hell of it. I really need you guys to talk about it so I can make sure I explain it adequately in the book...

Order Flow - Finding cluster of stops on chart

You guys are so lazy sometimes... Here. Chew on this for awhile.

Order Flow - Finding cluster of stops on chart

Yeah, you guys probably shouldn't spend too much time looking at my trades. It's very impressive how far this thread has progresed, but it's important to realize that what your talking about are only the most basic aspects of Order Flow. I've been ...

Order Flow - Finding cluster of stops on chart

It's almost like people here thrive on complexity... The BOJ answered this question pretty explicitly on September 14, 2010. Enjoy.

Amount of money to move the market

Carnegie my friend, you are wise beyond your years. That is EXACTLY how you find the orderflow. Nice work.

Order Flow - Finding cluster of stops on chart

Anyone who A) needs the liquidity the stops provide and B) are large enough to move price. Also keep in mind that way too much is made of the super liquid $3t forex market. In reality anyone with a 6 figure account can move price because at least ...

Confused about stop hunting