Order flow trading

[Usernamehere]

Hey Usernamehere,

thanks for stopping by. AudUsd has put in a higher low today and is rotating nicely from the touted levels from yesterday. The guys from OrderFlowTrading this morning touted some decent selling interest around 9400, which is also this week's high so it makes perfect sense. Price might very well stall up there and turn lower again.

From a sentiment perspective, the RBA wants a lower Aussie and all it would take to break 9320s is some decent jawboning from them, and maybe a tad of worse CNY data which influences the Aussie quite a bit.

Do you have a view on the Aussie you'd like to share here?

Cheers,

JJ

I say they fail to mention the significance of the level..

 

[Usernamehere]

wow, pic is small. How about dis:

 

[JJayFX]

wow, pic is small. How about dis:

Wow that's a busy chart...you sure you need all that info on there?

I mean to each their own but I'm of the opinion that less = more

I do concur with the importance of the level as you ilustrated above..I just don't like diagonal lines..they're a little too discretional for my liking.

Thanks for your input!

 

[BobbiDigital]

Hey JJ,

Do you utilize round numbers with your order flow trading? Price seems to respect/act the same as your stop hunting description at prior S/R levels at these 50 and 00 levels even if price hasn't left footprints. People's attraction to these round numbers is as old as markets themselves right? Good place to fill large orders... Thanks

BD

 

[JJayFX]

Well, i've got my stop tucked under the day's low and the bearish print vs. bullish expectations really helped me get back on my feet in this trade.

It could (and probably will) wash out on me anyhow because I'm seeing a little too many punters hunting down this bounce but my rules of engagement were present and clear.

Hunting counter-trend is the riskier route, relative to continuation entries where you slip into the flow of a dominant trend...just that there haven't been many recently to be honest!

So here's the current situation on the Euro

 

[JJayFX]

Hey JJ,

Do you utilize round numbers with your order flow trading? Price seems to respect/act the same as your stop hunting description at prior S/R levels at these 50 and 00 levels even if price hasn't left footprints. People's attraction to these round numbers is as old as markets themselves right? Good place to fill large orders... Thanks

BD

Hey Bobbi,

round numbers certainly attract their share of attention, whether on commodities/indicies/FX... and you don't have to take my word for it: Carol Osler is a great researcher and has been able to slip onto some trading floors in top-tier banks. She's had the opportunity to analyze real time high frequency data and came out with the same observations. http://people.brandeis.edu/~cosler/

So in the euro, 1.3500 is more important than my entry in the 3520s for sure. But it diddn't get down there (yet). The xx50 is less important in my personal experience.

However, I do not use round numbers alone. If an evident level/zone is coinciding with a round number then great, all I have to do is wait and see if it hold up to inspection. Here's an example:

 

[Usernamehere]

Well, i've got my stop tucked under the day's low and the bearish print vs. bullish expectations really helped me get back on my feet in this trade.
...

So here's the current situation on the Euro

Sovereign bids noted in EURUSD into 1.3500

Do you feel this will help or hurt?

 

[JJayFX]

Sovereign bids noted in EURUSD into 1.3500

Do you feel this will help or hurt?

That's what happens sometimes...the moment you start "hoping" the trade will go your way, when it starts to pressure your entry point after a whole day of sitting, it's time to pull the plug.

Thus, I'm out of this trade without taking a full loss. I also read the newsflash

however, the best trades are the ones that work well from the start. So i'll sit this out and re-assess if those bids happen to manifest themselves with any sort of convinction.

 

[bone]

Thank you for taking the time and effort to begin this thread. I think this is quite fascinating, and I haven't seen material of this quality on ET for a while now. I appreciate your efforts and I am very intrigued to go through more content on the subject as you are able to provide it.

Most traders associate the term "order flow trading" as a very short term day trading / scalping strategy which requires hyper concentration on a singular product's price ladder. Others use the term "tape reading".

If you are interested in longer term order flows, I would suggest looking at Market Profile.

 

[stock777]

trading is a delicate balance between watching, waiting, optimum execution, hesitancy, impulsiveness, and not falling asleep.