The Truth About Order Flow Trading & How To Trade It!

[PREDITER]

Dave,

You should consider writing a book, you would sell alot just on this forum

[David_Jefferson]

It’s been a really slow day, not much action and pretty much low volume trade.

There is about an hour until the New York cut 3pm UK time. The USD/JPY is currently at a couple of option barriers just now. The trade is risk free as the stop is at entry… so lets see what happens after the cut or just before. The worst case scenario is that it stops out for a ZERO loss/gain. The best thing that can happen is that it reaches the 78.10-15 target area and we make some money.

Either way its a stress free trade!

[zwara]

Okay the only trade I currently have active is the USD/JPY [B]short[/B].

But I have 2 [B]buy[/B] orders sitting @ 78.05 and 78.10 for the USD/JPY with the stops set @ 77.85.

I have also just placed 2 [B]buy[/B] orders on the GBP/USD @ 1.5500 and 1.5510 as there are bids @ 1.5500-10. The stop on GBP is 20 pips and the targets will be 1.5530 and 1.5550.

I’m going to take a nap on the sofa for an hour. Will be back at 10:30is or when one of my chart alarms goes off!

After NY cut these pending orders are canceled?

Luis.

[David_Jefferson]

After NY cut these pending orders are canceled?

Luis.

I will cancel the GBP orders but not the USD/JPY buy order.

[Mones]

What will the targets be from USD/JPY? The offers are kinda high to chase after imo. Somewhere around last week’s Thursday/Wednesday Close/Open price reasonable?

[zwara]

we have a fight on eur .2400

Luis.

[matrade]

David,
could you see whether i am interpret flow for eurusd correctly :
Barrier Option :
1.2500 (700m)
1.2300,1.2400 (unknown)
current market : 1.2395
Offers : 1.2445/50 - Offer comes in to protect 1.2500 barrier.
Buy Stop : 1.2450/1.2500 - Stop to attack 1.25
Bid : 1.2350/60. 2300/10 - protect 1.2300 barrier

With the info above i would wait and see if offers at 1.2445 manage to hold the price. if it can i would sell eurusd with sl at 1.2505 and target to 1.2310 ? If it can’t i would see on the stop at 1.2450 and buy eurusd with sl at 1.2440 target 1.2500 ?

[David_Jefferson]

What will the targets be from USD/JPY? The offers are kinda high to chase after imo. Somewhere around last week’s Thursday/Wednesday Close/Open price reasonable?

78.50 is the upside target.

[David_Jefferson]

David,
could you see whether i am interpret flow for eurusd correctly :
Barrier Option :
1.2500 (700m)
1.2300,1.2400 (unknown)
current market : 1.2395
Offers : 1.2445/50 - Offer comes in to protect 1.2500 barrier.
Buy Stop : 1.2450/1.2500 - Stop to attack 1.25
Bid : 1.2350/60. 2300/10 - protect 1.2300 barrier

With the info above [B]i would wait and see if offers at 1.2445 manage to hold the price. if it can i would sell eurusd with sl at 1.2505 [/B]and target to 1.2310 ? If it can’t i would see on the stop at 1.2450 and buy eurusd with sl at 1.2440 target 1.2500 ?

Yeah that sounds about right apart from the stop on the sell. The stop does not need to be that big… you have said there are buy stops just above the 1.2450, so your stop would be located here (above), as if they trigger price should move up higher eventually.

Also judge the current market sentiment…bullish/bearish and go with the flow based on that.

[David_Jefferson]

GBP/USD - [B]Cancelled the BUY orders @ 1.5505-10.[/B]

USD/JPY - [B]Moved stop on short trade to 78.35 (LOCKED IN +10) Target still stands at 78.10-15[/B]

USD/JPY - [B]BUY orders placed @ 78.05-10. Stop loss placed @ 77.85. Targets are 78.50 & 78.80.[/B]

Finished for the day.

Back tomozz morning for London.

[matrade]

Yeah that sounds about right apart from the stop on the sell. The stop does not need to be that big… you have said there are buy stops just above the 1.2450, so your stop would be located here (above), as if they trigger price should move up higher eventually.

Also judge the current market sentiment…bullish/bearish and go with the flow based on that.

Thanks …

[FX_Trader_2012]

Have a nice day Dave. Thank you again.

[letissier07]

David,
could you see whether i am interpret flow for eurusd correctly :
Barrier Option :
1.2500 (700m)
1.2300,1.2400 (unknown)
current market : 1.2395
Offers : 1.2445/50 - Offer comes in to protect 1.2500 barrier.
Buy Stop : 1.2450/1.2500 - Stop to attack 1.25
Bid : 1.2350/60. 2300/10 - protect 1.2300 barrier

With the info above i would wait and see if offers at 1.2445 manage to hold the price. if it can i would sell eurusd with sl at 1.2505 and target to 1.2310 ? If it can’t i would see on the stop at 1.2450 and buy eurusd with sl at 1.2440 target 1.2500 ?

Sorry if this has been mentioned but how can i obtain this information? Do I need to subscribe to any data feed from any provider or is this publicly available?

Thanks!
Spencer

[fiber]

Friday’s free training session

Download here

Not trying to clog the thread but couldn’t PM you. Seems my codec’s are gone too, do you have one for this as the ones I downloaded don’t work? TIA.

[Stugeo]

Not trying to clog the thread but couldn’t PM you. Seems my codec’s are gone too, do you have one for this as the ones I downloaded don’t work? TIA.

This should work with Windows Media Player

[matrade]

Sorry if this has been mentioned but how can i obtain this information? Do I need to subscribe to any data feed from any provider or is this publicly available?

Thanks!
Spencer

I get from IFR Markets, with OANDA free demo account. IFR reports the barriers,offers,bids,stops level and we need to interpret it, which is what we are learning here.

[letissier07]

Not trying to clog the thread but couldn’t PM you. Seems my codec’s are gone too, do you have one for this as the ones I downloaded don’t work? TIA.

I couldn’t open the WMA file too…

[letissier07]

I get from IFR Markets, with OANDA free demo account. IFR reports the barriers,offers,bids,stops level and we need to interpret it, which is what we are learning here.

Thanks. I am using IG but i will go take a look at oanda.

Cheers!
Spencer

[fiber]

@Stugeo

This should work with Windows Media Player

I’ll try VLC MP.

EDIT: VLC didn’t work either - Any idea’s anyone?

EDIT No2: See post#104 from Mones for the gm2 codec needed to watch the download.

[Stugeo]

I’ll try VLC MP.

Arf VLC didn’t work for me, only WMP… Sorry