Order Flow - Finding cluster of stops on chart
Page 1 of 842 12 LastLast
Results 1 to 10 of 18

Thread: Order Flow - Finding cluster of stops on chart

  1. #1
    Hi guys,

    I have been reading allot of Darkstars posts and discovered this order flow stuff very interesting.
    So I have been searching around the net for Order flow information and only discovered things about tape reading and level two orderbooks etc but here's my take on it:

    Considering that the FX market is OTC, there's absolutely no center orderbook or whatever I need to call it. What we have is FXCMs orderbook, OANDAs orderbook etc. which wont help at all because no huge banks or large indivduals exchange their order thru those small retail brokers.

    Now, the next issue is that the FX market moves so god damn quickly, how would ANYONE be able to process all that quickly moving data and reading a fake hand on bid/offers to take a counter trade?

    What this boils down to is really my question, is there any method of localizing at which the orders MOST LIKELY will be ON A CHART.

    That I ´ll give you an instance, as a rookie: I think as a FX loser. And this was portrayed to me by the market in a manner that made me think what the FUCK are you.

    That is what occurred:
    The market trended down strongly, then was in a consolidating or congestion, easily drawn by two horizontal lines.

    Fair enough I thoughtI put up an upper and lower horizontal lines that also created my borders.
    As intelligent as I am, I put up breakout orders BOTH directions (I know, I'm a sharp, covetous little kid. . Trying to ch both movements!!)

    So how does the market humiliate me? Well it trades up and strikes my order I'm positioned LONG. Up a couple of pips and moves waaay down and strikes my stop-loss at the bottom boundary (remember the two flat lines?) .

    Exactly what does this tell me?
    That informs me that I am STUPID. That tells me that my entry was somebody elses short and my stop-loss was somebody elses take profit. It almost feels like somebody took my girlfriend.


    So this made me think, I have seen allot of traders using order flow in the stock market (clearly because it is easier because it is centralized) and almost all other markets but not the FX.
    Let us say it is not possible to use a order book in FX: how would we go about order flow? Are there any possible method of thinking about where the orders may lie?

    The first thing hits my mind is that there should probably be stop-loss order below a consolidation range. And there should be some market orders SHORT.
    And reversed, there should be long order over the range, attempting to ch a breakout.

    But this can't be it, can't it? There has to be something more! (Ofcourse I understand there is no way of knowing 100% at which all the orders are).
    So this is my take on what I have discovered on order flow and I am looking for more, it sounds extremely interesting!

    And hope you men (n' gals) will help me out here, the way to think in which the orders must be and possibly point me to the path of getting more information about order flow.

    Thank you and trust you had a great new year celebration!
    PS. Except for the English, if you do not understand what I mean that I will attempt to explain it more.

  2. #2
    anybody noticed the hunt on uchf. I had been watching my charts on Friday when my tweetdeck alerted using a post abouthttp://www.forexlive.com/162907/all/...bids-in-usdchf of SNB bids near 9400.

    Than now again I received http://www.forexlive.com/163203/all/...-sovereign-bid and I thought to myself,... hell.... Now a lot of individuals know about this.

    Then when price approached 9400 I opened a 5m chart and as u can see the big 5m bear candles around the chart compared to small ones to the upside. The first 4 bars countered all of the upmoves by small several bars behind them then notice the response after 5th pub which actually pierced the 9400 by considering these 3-4 small bars I'd say it was very obvious that SNB had been't helping em cause u know how does these candles seem like when they perform. Lol

    At the end I found gchf and echf slowly sliding down also before the hunt.

    Was a clear one for me.

    P.S: Just my observations,. . Nothing for eduional function as I have no experience or knowledge over the matter.
    .

  3. #3
    Quote Originally Posted by ;
    anybody noticed the search on uchf. I was watching my charts on Friday if my tweetdeck alerted using a post...
    I guess the rumors were true! I wonder that the gossip is that begins them! That would be intriguing

    Some little dude running around all of the bankers whispering about everyone behind their backs lol

    Seriously though

  4. #4
    Cindy.. It's the mensroom

    BTW because you guys know I'm moving into a depth of market since someone explained it is the way to get a beginner order flow trader. Since FX doesn't have that I said to to myself learn it!

    So I have a Few questions. . Clearly the disequilibirum in liquidity exists in stock market alos (price efficiency/inefficiency) and stop hunting should happen too. But how often does prevent searching happen in the stock market? Is it often? I'm thinking to choose a stock, then sitting and staring at it all day long to figure when it apporaches how it goes. Round numbers etc..

    What do you believe?

    Take care.

  5. #5
    Quote Originally Posted by ;
    Cindy.. It's the mensroom

    BTW because you guys know I'm moving into some depth of market as someone told me it is the way for a novice order flow trader. Since FX does not have I said to myself to atleast learn it on stocks!
    Spot may not fx futures do

  6. #6
    I have in the past watched fx futures, and that I started an IQfeed demo this week using CME information and market depth. Of course I don't have any idea what I am looking at however...

  7. #7
    Carnegie,

    I have been studying more about market depth and tapereading. . .and happen to be observing FX futures thru the Ninja Trader platform. . .free demonion from various brokers. Possibly something to test out in addition, or rather than to, watching individual stocks.

  8. #8
    What do u guys think about these charts?

    I have had any revelation in last few months by just considering price and noticing how I get stopped out on 70 percent of my trades. I am not certain where this thing is moving but its getting my interest.
    .


  9. #9
    Quote Originally Posted by ;
    Hi guys,

    I have been reading allot of Darkstars posts and found this order flow stuff very interesting.
    So I've been searching around the internet for Order flow info and just found things about tape reading and level two orderbooks etc but here is my take on it

    Considering that the FX market is OTC, there is no center orderbook or anything I should call it. What we have is FXCMs orderbook, OANDAs orderbook etc. which wont help whatsoever because no huge banks or large indivduals trade their order thru these small retail brokers.

    Now, the second issue is that...
    There is a central aggregation service which provides a live international order publiion view for integration into any platform. We have used the information to get bandwidth and scalping/arbitrage analysis.

  10. #10
    Quote Originally Posted by ;
    there's a central aggregation service that provides a live global order publiion view for integration into any platform. We have used the data for liquidity and scalping/arbitrage analysis.
    How can you gain access to this?

    Some link?

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
This website uses cookies
We use cookies to store session information to facilitate remembering your login information, to allow you to save website preferences, to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners.