Order flow is a concept in trading which many claim to understand. Few really do. The order flow of markets is what truly causes price to move.
Order flow can be applied to many aspects of financial markets. There is stop hunting, market microstructure, tape reading, technical analysis patterns and many more. One phenomenon drives these – order flow of markets.
Most of us traders know what Forex Factory is, but do we know how to use it to improve?
Forex Factory is a goldmine of information and resources. It’s the largest trading forum out there.
However, there is a lot of subpar information to wade through. I’m going to help you use it to your benefit. This article will give you multiple ideas on how to use Forex Factory and ultimately improve your trading.
Crude Oil is the main focus going into 3rd May. There is some interesting structure at play in this market, as outlined on the chart.
One of the most interesting charts out there at the minute – Dax is below a big area on the hourly chart. A good play would be to look for longs at the 12480 area in preparation for a probe of 12650 liquidity.
If the lower level isn’t tagged before we take the highs, it will be worth looking for longs off of 12650 as we explore to new areas of value. I will only be looking for longs there if we accept above – meaning we spend time above there and don’t immediately fall back into the range.
Missing trades can be incredibly detrimental to your bottom line. It’s costing you big, we need to fix it. The amount of times we’ve said ‘I knew I should’ve taken that’ or ‘why didn’t I see that setup, I should be in it’. This is a very real issue for a lot of traders.
Missing trades manifests in numerous ways. Multiple causes lead to missed trades. Once past this hurdle, we can begin to increase profits and the efficacy of our trading.
Anatomy of a breakout.
Firstly, note that 1 & 2 and 4 & 5 are pretty much the same structure, with 4 & 5 being within
the larger pattern of 1 & 2.
At (1), we put in multiple highs (also an inside day high). This becomes an area which is likely
to have stops build up beyond it. This becomes somewhat of magnetic price point.
At (2), we can see a support level which was previously resistance on the left. This is then broken
at (3). However, price cannot hold below (3) and is making new highs again.
(4) is the same multiple high structure as (1).
(5) sees a repeat of (2) – move below support but cannot hold below it, we are immediately bid.
(6) seals the fate of any bear. At this point we know – with great probability – that we are going
to find out what’s above (1).
You often hear traders quarreling about trend trading vs mean reversion trading. I’m going to help settle the dispute. The two trading styles are often pitted against each other, with no consideration of finer details. Read on for those finer details.
I’ve heard many traders state that time-based candlestick charts are useless. ‘Why does a 30min chart have more significance than a 45min chart’, for example. ‘You should use tick-base charts to filter the noise’, and so on.
Trading and Poker are the same? Not on the surface, but they have very similar dynamics.
You’re telling us that to be good at trading, you must be good at poker? Well, if you put it in that way, no. However, there are similarities; I will share those with you now. Read on..
That word that has come to be so divisive and annoying. Shoved down our throats over the last 2 years, it’s become somewhat of a battleground between Remain and Leave voters.
Who remembers what the price of GBPUSD was before the referendum? It was about 1.40/45 for a while. Some time after, it had ticked down to $1.20. Read on..