Have you not read this thread?
There’s a link to a live news ticker which was posted for the umpteenth time only 2 pages ago on this very thread Forex News that offers market focus insights from a sample of investments bank’s as well as occasional links to news sources expanding on certain items of relevance.
You could also try this lot FXBeat - FXStreet who contribute a free flowing update on what’s driving & influencing market positioning, as do this group of analysts ForexLive Forex Market News, Breaking Foreign Exchange, FX Headlines who run a similar offering.
If you tap “newsflow information” or similar combinations into your search browser you’ll discover a decent assortment of potential research material to investigate.
Have you browsed the fundamental section of the site to see if anything takes your fancy?
PipDiddy presents a session update each day recapping all 3 regional sessions that will give you a snapshot of what the market has been, & is focusing their attention on.
It’s all out there if you’re prepared to roll your sleeves up & take action.
I agree with Thalia, it pays to become familiar with your search engines. You can glean all sorts of interesting information if you conduct your own research.
The established industry information sheets such as Bloomberg & Reuters offer a free abridged summary of the pertinent market themes across all asset classes, including currencies.
Glad to see this thread getting getting some action! Hate to see it die after Dali was so gracious to take the time to share his methodology with us . I just incorporated order flow trading into my trading plan and so far there seems to be some legit price action that reflects the thinking of institutional traders. Questions though, do you guys use order flow both for scalping as well as longer term analysis (4h+)? I kind of think that it’s more useful for scalpers since no one entity can make the price move for an entire 24 hour period just to do stop hunting.
yeah Dali really explained things well. I too have incorporated orderflow thinking into my method, and i’ve been at it for some time so i’ll try to answer your questions…
Whatever time frame you want to interact with the market from, should depend on your objectives and risk tolerance. It’s not really for me to say that scalping is bad and only longer term trading is good, becuase the market will react on all time frames to the same stop levels. If the level has enough interest in it, then it’ll show on a 1min chart just like it will on a 4H chart. Of course, the objectives of a person using a 1 min chart will be very different to a person using a 4H chart. Stops, targets and patience will differ because they will be looking for totally different opportunities…but their action will stem from the same level (of stops).
The orderflow mindset is just that: a mindset…a tool that you can use to your benefit. How to use the tool? It depends on the user! I plan my background work on a 4H chart (no less than a 1H in any case) and execute on 15mins or 5mins to get a better risk:reward ratio. I know a user of Orderflow trading that trades Crude on a 1min chart…and does pretty well at it too! I would frankly have a nervous breakdown watching 1min charts all day…but to each their own! As long as you have studied your setups, gained an edge and have it all down real tight, then nobody can say anything to you!
Glad to see that orderflow trading is very much alive !
It is really a trip when you’re looking at a set-up and then trying to decipher how the institutional trader with a big order to fill would get the best fill. It’s so evident in the fake-outs that you see out there.
By the way, have you read DarkStar’s book? I heard it’s a must read, but unfortunately Dark Star doesn’t sell it anymore and you can only gain that knowledge by getting signed up on his couse, which is about $1,000. I am tempted to go for it, but I think I understand the overall concepts behind overflow trading, which is as you mentioned just a “mindset”. I guess gaining knowledge of the strategies he uses may be worth it, but not sure. What I know about overflow trading has been acquired through here, orderflowtrading.com, and some other forums that escapes my memory at the moment.
Anyways, thanks for the response and I’m glad that we’re going strong with this order flow trading biz.
no, i have not read the book. I have followed orderflowtrading.com and the chat that they have in there. They have recently renewed their product offering and i don’t see the 1000 dollar course you’re talking about. I think you can get the book in the form of lessons + lifetime chat access for something like 300 USD now. I can’t link to the site today because it seems to be having some problems.
To tell you the truth, in my trading i don’t really think about “where institutionals might need to gain liquidity”. I just look at the development of price action and look for evident areas that have seen 2-way traffic. You may call them supports and resistances or “flip levels” but ultimately they are full of 2-way stop orders and are low-risk edges where i like to look for my trade opportunities. To tell you the truth, once you start applying the mindset of qualifying levels and matching the levels up with sentiment/trend, then there isn’t much else to do…just wait until price gives you one of your preferred setups and fire away
Took another trade today using some order flow info: orderflowtrading’s newsfeed touted some stop levels on UsdJpy at 102.30 and 102.50…so i took a pullback long in line with the short term bias and we’ve popped through the first stops and heading for the second stops now:
Real nice jcpfx! I was on the same bandwagon yesterday, taking an intraday play. I got stopped out though (following my stops too closely, because of the jitteriness of the market), and the missed Employment and PMI numbers did me in on that one. Looks like it’s progressing well here. Next stops seem to be above the 12.80. I’m watching the 102.60 and 102.70 price action here for a break-out above the long term resistance 102.80. So far it’s progressing good. Hopefully the risk on sentiment persists and takes the price to 103.00. It’s interesting how the price progressing against the institutional and large speculator positioning, which most are short the USD.
I’m right now watching the EURGBP for a possible break-out in anticipation of the ECB rate cut and the GBP rate decision. Both are major event risk for the EUR and GBP pairs.
yeah, i try not to micro manage my bets because the fx markets especially have the habit of doing 3 steps forward, 2 steps back…and getting prematurely unseated is a nuissance.
Regarding your breakout plans, so far it looks like it’s working out for ya! I don’t personally enjoy breakout trading. I like to play the pullbacks and target main stop areas from below (or above). Playing the break right at the level could place me right in the middle of all the 2-way action that often results as fake outs.
So we’re back on the usual suspect today…price was not able to take out the stops below last weeks low and the overnight low stops were not even pressured this morning. The topside stops gave way and on the US data we have been propelled to 102.00 on the Jap.
From what I can tell, there aren’t many big plpayers that are willing to lay down money pre-Easter so it could be a choppy week ahead.
so Gold turned out to be a better opportunity than I expected yesterday evening. I initially faded the return to the daily highs/current week highs (evident stops there) as a lower probability solution. However, it trotted on nicely overnight and I took half position off at yesterday’s low (stop level at 1819) and the rest at the other stop level (stronger) at 1314.
1314 is a 2-way level on Gold: there have been both buy stops and sell stops at the level so it’s probably the level to watch for continued upside on Gold.
Watch out for GBP data today…personally i think sentiment favours Gbp vs. Cad (relative monetary policy stance) but we’ll see what happens.
Explosive stop loss activity this morning, in line with sentiment, on GbpuSD which combines the Usd recent strength with Gbp fundamentals + data print:
To define order flow trading you need to first define what type of trading you are trying to do. Most speculators, especially in the retail forex market are attempting to place directional trades. Directional trades meaning that you are going long or short, betting that prices will either move up or down. Therefore if you believe a currency pair will go up, you execute a buy order. If you believe a currency pair will fall, you can sell it, aka “going short.” This type of trading is called directional trading. It is one of the most common forms of trading, that usually many people in the investment world, hedge fund world, and retail speculators engage in.
i really don’t understand your response, but here’s my interpretation of what OrderFlowTrading is. OFT is a mindset that helps you think about what other market participants are doing, help you sense fear and greed in the market and it incorporates the information flow of stop loss orders, options, and any other piece of relevant information attainable through various sources. The sources I use for actually staying abreast of fundamental flows and stop loss clusters are orderflowtrading.com 's newsfeed (it’s free) and Oanda’s real time newsfeed.
The mindset allows you to stay aware of how price is moving and your knowledge about other participants helps you avoid common mistakes and you can combine the order data from the news sources to generate profitable ideas.
That’s my rationale…i don’t think it has anything to do with directional vs. non-directional trading. It has to do with the market structure and market participants. Trading is a zero-sum game…so if you want to profit, you need to be better than someone else. I think the orderflow mindset is really important precisely because it gets you thinking about what others are trying to do.
