I appreciate it ohdearohdearohdear.
I don’t want to deviate off topic here… but here is an example of order flow trading for the EUR/USD today.
This was the order book reported today.
[B]Offers:[/B] 1.2280-300 (Asian Central Bank) Also an option barrier sat here “1.2300” (Option barrier reported to be sized 535 million).
[B]Bids:[/B] 1.2200-10, large sell stops sit @ 1.2190-85 and more bids @ 1.2150-60 (Russian names mentioned) Also option barrier sat here “1.2150” (Option said to be sized 800 million).
The option barriers tend to act as magnets for price, you will witness price move from one to another very often, taking out bids and offers along the way to fuel the moves.
For example, on the order book above, there is bids @ 1.2200-10 with large stops below @ 1.2190-85 and an option barrier down @ 1.2150. If price works its way through the bids, then as soon as price moves below 1.2200, the stops will be in focus, and eventually they will be tripped and price will head for the option barrier @ 1.2150.
Hi David,
Thank you for spending your time on this forum. As some one else mentioned, the problem is (and this is not your fault at all), but the really useful posts simply get lost in the mountain of other posts and questions. When I logged on this morning I think it was up to page 15. Now we are on page 31!
I am not sure there is anything that can be done about that because obviously people are very keen to learn from you. The only thing I can suggest is perhaps to edit your initial post to include links to specific posts that contain certain methods, ideas, or important concepts. That initial post can then act as a sort of index, whilst the normal posts can still continue. You already listed a whole bunch of points/concepts in that initial post so you obviously have some innate structure in your head. If you make one or two posts that cover a particular subject, you can reference those posts from the initial thread.
The only issue is that it is a little extra work for yourself as you have to go back and edit the initial post to include each appropriate hyperlink.
Either way, many thanks for the awesome effort you are going through, it is very much appreciated.
J
Hi David,
sound good, however without the data we cannot analyze this type of good stuff…yum yum
Bloomberg Terminal, 4cast, Thomson Reuters (IFR Markets), to name a few will report bids/offers and option barriers.
David,
would this have been a valid sell on the eurusd today, price broke below the 100sma and was within the 100 and 200sma’s to test the 100sma from below, with a entry to sell on the breaking of the 200sma. The 15min chart also gave divergence with a 1-2-3 entry on the break of the 200sma.
thanks Joffie
Hi
I don’t see anything the matter with that at all. Looks pretty sound and logical to me.
The 1-2-3 is perfectly fine, there is actually 2 of them there. Plus you had the hidden bearish diverg.
I didn’t touch the EURO today because the action this morning was a little horrible looking and I saw better options else where.
David
Hi Dave I missed out on most the action today due to traveling for my weekend. I did have a sell on the euro today on the break of the zone right after the Spain news. Closed it from my iphone for over 50 pips. I get much of my option barrier news from Talking Forex,Ransquak and stops info from Trade the news. This seems to work well for me. Keep up the great work and have a nice weekend.
PS Your format is great too.
Cheers
Jeff
I just took a look at the statistics of this thread…
3 days old
over 15,000 views
over 300 posts
over 100 likes
Bloody hell, is someone here famous or something?
Where are they, I have my autograph book and pen here ready…
Whos the person thats clicked on my thread 15,000 times… I think you have a stutter or your mouse button maybe buggered.
Hey mate, I think you hold the record maybe on most forums, Congrats. Really refreshing seeing a Pro at work, personally I have been trawling forums for years and have never had a TRUE institutional trader show us the ropes, for that we a truly grateful. What county are you from in the UK ? I’m from Bedfordshire.
they click on your porsche picture… maybe u change to mclaren F1 then will have 30,000 views …hahahha
Your the star Man!
I already trademarked your name and the Paparazzi are hiding behind the bushes outside your flat!
Smile!
mclaren F1, now there is a car…hmmmmmmmm
I’m buying an Aston Martin next year. Time to move away from Porsches, thats my last one.
i preferred the japan monster Nissan GTR R32… aston martin which model?
North Yorkshire, but I’m seriously thinking about moving to Corfu full-time. My brother stays over there, and I have been loads of times and love it.
Hi David
Do you take round numbers into account in your trading? For example today I nearly took a short on the GBPJPY. I had the correction zone drawn between 123.35 and 123.15 using the 100 and 200 ma’s and the 50 and 61 fib levels of the 19-20 July swing. The bears took it all the way through the correction zone, with a minor correction off the zone forming a 1-2-3 pattern on the 15 min chart. I nearly took the trade but what stopped me was the 123 round number and the fear of being stopped out off it. Would you have let the round number influence you in this way or would you judge the move too strong for the round number to influence?
You know, I do like that car… but, call me stuck up or whatever… I just couldn’t bring myself to buy a nissan… I just couldn’t do it! Its a nissan!!! lol
I love the new Vanquish: The Aston Martin Vanquish I just got this yellow porsche, but I only plan to keep it a year. I thought we were going to have a cracking summer, so I bought it for that, but all its done is rain!
And I fancy a bit a luxury and space, which the porsche doesn’t have. I’m 6’2 tall, and the steering wheel rubs off my thighs… to small for me.
Hi simondav…
I’m just eating some food just now m8, I will answer your question shortly…
By the way, I want you to think about these following things in regards to the round number myth before I answer you.
Option barriers
Order Flow
Institutions
Marketers
Let me know what you come up with while I munch away at my chicken chow mein and fried rice.
Answer you shortly bud.
Ha, No problem David. I’ve just had mine, Sweet and Sour Pork from my local takeaway in York which I believe isn’t that far from you:13:
did a quick google David and from that its obvious that the option barriers are placed at round numbers for some reason, and the banks that sell them will defend them with considerable force to prevent them from having to make a payout to the hedge funds that buy them. Anything more you can add would be appreciated.