thanks you David! this kind of thread is what i am interested!
Ill let David correct me if im wrong, however I think I have a pretty good understanding of what he ment.
Not sure exactly what volume David would of had to have traded with, but considering he said it was in low volume trading any amount of money that David would of had at his disposal would of made a shift in price 3 pips in low volume sessions.
In a basic explaination, the price is a war between buyers/sellers if the buyers (bulls) are in control price will go up. If the sellers (bears) are in control, price will go down. So by shifting price down those few pips until the institution executed a buy (long) order at their ātargetā (the price which David brought it down to) They were essentially ready to fight back and drive the price back up in order to gain their profits.
However they probably didnt know which trader they were dealing with and because it was the magnificent David Jefferson with the power of Barclays behind him, he put in another short trade with the rest of the money he had and he drove it so far down that the smaller insitution had to exit the trade with a loss. As he stated in the original post as well, the institution couldnāt afford to match how much money he was using to fight back, therefore they had no choice but to accept the loss.
Im not sure what you mean by āhow does the math work on thatā, but what some people dont understand is in order for you to make money you have to take it off another trader, money just doesnāt appear from thin air :). So by making that smaller institution close that trade with a loss, David actually took all that money for himselfā¦ and barclays 
and yes, the big banks which are the PRO money that he has been talking about throughout this forum, are the traders that move price in this market. Smaller independant traders like us do diddly squat in the scheme of things. They are like a human, and we are the ants 
Again, banks taking out stops means they are making traders close trades with a loss, this means they make a profit and take all that money.
A lot of your other questions are repetitive and can be answered with the basic answeres above, Happy Trading (tomorrow :P).
David Jefferson, you are the man! I have read through the first 20 pages of the thread and it is all starting to come together. I look forward to continuing and following the thread and your analysis as well as beginning to trade with this bias! May the Lord Jesus bless you for the wonderful education you are giving all of us! One recommendation to all viewers: read the thread in its entirety! There are alot of repeated questions plus some that could easily be answered from a google search. Lets do our best not to waste Davidās time!
Hello Pedross56, Seems like you plotted the 123 pattern in a wrong way. Point 3 should not exceed the point 1 to go short and viceversa for long.
Check this post by David.
Hi gs8888, I have indeed plotted the/a 123 correctly. To ānegateā translates as to make ineffective or invalid. This pattern is not tradable as a short since point 3 is higher than point 1 ruling out an entry below point 2!
Pete
David, going back to your request for feedback on the thread.
Whilst Itās clear that everyone who is here now is pretty dammed pleased with how things are panning out, I am concerned for your sanity in the future! As the number of pages gets longer and the reputation grows you will increasingly get new joiners. Now they wont be patient enough to read the thread through (as it is right now), especially as it fills with our general background noise, rather than your words of wisdom. I would suggest that you give real thought to some clearly structured posts summarising the key aspects of what you are proposing (principals, indicators, tools, entry criteria, exits, MM etc with loads of charts) and place them at the very start of the thread. Otherwise you are going to be plagued with the same questions time and time again and eventually you will explode!
Thanks again for all your time.
When I look for my BB zones I will firstly look at the last swing to find a confluence of fib levels along with smaās if within that area. But I will then also combine these with multiple price support and resistance levels, where I see price testing levels multiple times, this would be how I placed my USDCAD BB zone. If you look back at the usdcad chart I posted you will see the swing I used to get my fib retracment, which came within the 38.2 and 50%, this also came within the 100 and 200smaās, and if you then look at price you should see where we had tests at the low and high of the zone. Hence why you see the touch of this zone plotted with a first touch rejection.
joffie
Regards to the USDCAD trades posted, from what I learnt from the 1st forum David started in, the change of bears to bulls will come when we see a cross of the 100sma, then after a cross of the 200sma this shows the bulls take full contol. The idea was to catch the change of trend at the 100sma before the move starts some times. So based on this information I would not have been taking any buy trades on the usdcad not until I saw price breaking the 100sma and test, as we had on fridayā¦
With my old style of trading price action, I would also have waited for a break test of the trend line before looking to buy. I know price tested the bottom of the 4hr channel and showed support here with a bounce, but if you look closely at price here it started to range, in fact it made a triangle pattern, with making lower highs and higher lows, where price was compressing to then break to the upside and continued higher.
This is just my view, and perhaps David will be able to explain this better
joffie
This is how I see the gbpusd now, with the last down move breaking below the 100sma, and breaking the last higher low. I now am looking to see if there is a retrace to the BB zone and 100sma to sell to the 200sma and further if the bears break the 200sma.
Also David I know this is based on the 1hr chart using the 100sma and 200sma, but without confusing other traders, and this is soley for my own information can this approach be applied to the lower time frames. From what I saw on the gbpusd and audusd on both retraces to the BB buy zones I had plotted, on the 15min time frames I had both pairs break the 100sma and gave a test from below for a 5min entry using typical divergence and patterns from the 100 to the 200sma for a nice profit, which would both have been taken before price reached the BB buy zones. Is this anything you would suggest to be traded or does this hold a higher risk?
thanks joffie
Lots and lots and lots of questions and PMās. :o
The threads becoming a little cramped and repetitive now with same questionsā¦ So Iām going to work on something and an idea to present the important parts in a structure thatās easy to understand and find on here.
If I show something newā¦ take one step forward, then Iām finding Iām having to take 3 steps back to re-answer the old stuff. So thereās a little bit of tug-of-war going on.
Most questions asked in past 2 days have already been answered by some members, I had a read at both questions and answers and the answers from the members are perfectly fine. So that helps!
I have been getting lots of PMās and emails from people asking for a signal service or alerts service websiteā¦ let me just make it perfectly clear so that I donāt get any more PMās or emails for alerts.
Iām not going to open or offer any trading signals services or SMS alerts services. That is for lazy traders that want to make a fast buck without analyzing charts or using analysis reports, and data.
I do not believe in signal services or alert services in that type of manner and therefore I will not be opening any or running any. Offering trading strategies is fine as an example model account, but not explicit buy now sell now signals, I think thats wrong and doesnāt benefit anyone apart from the vendor, as any loses occurred are covered by their subs.
Other PMs and emails have asked if I could offer option barriers and order flow I get from my contacts and also analysis such as what IFR Markets and Bloomberg offer, but for really high end prices which most retail traders canāt afford (IFR Ā£360 pm, Bloomberg over Ā£1,500 pm). Sort of like offer an FX hub where there is order flow reports, barrier reports, technical analysis charts/daily strategies and FX market news.
Thats actually not a bad idea. But Iām not sure I would want to dedicate that kind of time and devotion. Therefore I will seriously think about it. But at the moment my head says no.
I will post up some charts Monday morning with my views and analysis and zonesā¦ and progress through the week.
David
You can follow me on twitter nowā¦ Iām officially a twit!
Twitter: @FXJefferson
[QUOTE=joffie;376041]When I look for my BB zones I will firstly look at the last swing to find a confluence of fib levels along with smaās if within that area. But I will then also combine these with multiple price support and resistance levels, where I see price testing levels multiple times, this would be how I placed my USDCAD BB zone. If you look back at the usdcad chart I posted you will see the swing I used to get my fib retracment, which came within the 38.2 and 50%, this also came within the 100 and 200smaās, and if you then look at price you should see where we had tests at the low and high of the zone. Hence why you see the touch of this zone plotted with a first touch rejection.
Thank you, Joffie, read your post 379 and the above ā¦understand now
Hi David,
in this setup you mention one of your tech tools you use is the Barclay Bank Cash Flow Index. Where does one get an Indicator that is similar in functionality as this for MT4? Thanks Tex
Forget the last question David as I seen you donāt use this indicator anymore so pointless asking for a similar indicator, Thanks Tex
In the previous thread David suggested a macd with settings of 30,45,15 which picked up most of the moves of the Barclays Flow Index.
Cheers for that Simondav, will give that a try, much appreciated, Tex.
The only things missing are who it belongs to and some sizes and what type of option barrier it is, ā¦ is it a knock on or know off.
The option barriers act as magnets and support and resistance via the spot market. Also if you take a look at the IFR order book reports, you may see bids/offers sit in front or under the barrier which will give you a bit of info if the barrier will hold for a period of time or is looking to be broke. Not every barrier reported will come into play on the day.
Price normally is attracted to the barrier if its within 30-50 pips of itā¦ very often the barrier will attract price to or near to it.
If you look at the GBP for Tuesday options you have on your picture, you will see the second one down has the sizeā¦250 millionā¦ thats quite small, so it probably belongs to a small hedge fund.
My contacts supply me with who it belongs to, the size, what type of option and expiry.
Maybe there could be two threads, one where David teaches and the other where people ask questions? One thread could have posting privileges for David only.
i would have thought that would infringe on copyright (with respect to sharing info from a paid service provider), though i guess you have already checked the contracts. iirc you were not allowed to extract bloomberg data say into excel & then send that to someone else. obv hard to control though.
from the wording I believe what David means is that the information offered would come from his personal contacts, he is comparing the service offered to that of IFR and Bloomberg.
Earlier in this thread, the importance of the cash flow was mentioned. I think it should not be forgotten.
I start each day with the same questions : Where is the money, what to trade and how many pips on the table.
Hereafter is past Friday.