There seems to be a new proposed holy grail of forex trading being touted as the next best thing, apparently everyone who doesn't know how to read this magical formula to success is in the dark, and one article I read on the Internet said fundamentals and technical indicators are useless, all that matters is this market depth and stop clusters and blah blah blah, sounds like that bloody nasdaq level 2 cr#p I used to watch years ago! Any thoughts?
order flow trash
- Thread starter wwatson1
- Start date
reading order flow is pretty useless. it is hard to devise a trading plan just based on order flow.
it is too much information to process in very little time when the market is moving fast.
it probably helps for micro scalping.
a large positive bed ask delta doesn't mean huge selling took place. well somebody grabbed all the selling. what is bullish from the buyers perspective is bearish from the sellers perspective.
it is too much information to process in very little time when the market is moving fast.
it probably helps for micro scalping.
a large positive bed ask delta doesn't mean huge selling took place. well somebody grabbed all the selling. what is bullish from the buyers perspective is bearish from the sellers perspective.
I'm not saying its no good but it's just another confusing element to add to an already cluttered subject. Orders can be changed and canceled there are many variable's! I don't think I will be throwing out my charts and economic calenders in favour of a newly discovered level 2 screen for forex traders
I know of one company in particular (OFA) Order Flow Analytics. They provide a free plugin for NT. If anyone is interested here's a link where you can download it and there's a video on that same page which explains how to use it. http://www.orderflowanalytics.com/english/index.php/software/ofa-free
For a while now I been putting up a live order flow chart of the index futures, ES, NQ, TF and YM that I mostly trade side-by-side a normal chart. About the one thing I can make of it is, it's somewhat of a visual to the amount of selling vs. buying pressure on a particular instrument is for a given time frame. I find it somewhat useful but also difficult to accurately predict the instrument's precise momentum or direction. You would need to see it in action for yourself to detemine if useful or not. I've taken trades using order flow but only alongside with the aid of other things I normally look at to determine when to get in a trade and if long of short.
Ditto! Plus if I may add, I too will try to keep an open mind to the many tools or aids available to the day-to-day trader. I would think is safe to say, there's no one solution or magic bullet. If there was, no one would have an edge and there would be no winners or losers and trading would become a stalemate. Order flow is just another tool just as Volume Profile charts have a place of their own. These all fill gaps. But that's where I like to draw the line. I personally like a clean chart with as little stuff to distract me as possible.
IMO the KISS principle works best for humans.
This new herd of technique IS THE ANSWER to ALL FOREX TRADING PROBLEMS!
If you are not using it it is like trading blindfolded, with a ball gag, in a black sack tied off at the top and someone is beating you with a stick that has nails sticking out of it.
I bet the world's most interesting man is behind this 110%?
If you are not using it it is like trading blindfolded, with a ball gag, in a black sack tied off at the top and someone is beating you with a stick that has nails sticking out of it.
I bet the world's most interesting man is behind this 110%?
