The key to seeing potential sources of orderflow which can move a trade to profit, in any market, in any timeframe, is to…
… see the pain, not the price!
Happy trading,
Lance Beggs
The key to seeing potential sources of orderflow which can move a trade to profit, in any market, in any timeframe, is to…
… see the pain, not the price!
Happy trading,
Lance Beggs
I'm always VERY interested in these places on the chart – the places where price can't go. The places where it tries… it pushes… but it just can't go there. This is opportunity. Let's start with the Higher Timeframe chart… Let's switch now to the trading timeframe… Reference… this is a BOF Setup as described…
I don't recall who said this… and I'm paraphrasing… but I absolutely loved it when I heard it and it's stuck with me ever since. "Why shouldn't we try to pick tops and bottoms? That's where the risk is smallest and the profit potential is greatest." (If you recognise the actual quote can you…
A trade is NOT over until the whole idea behind the trade is no longer valid. If you're stopped out, or if you scratch the trade, the trade is NOT over. Remain focused! Watch for an opportunity to re-enter. Lance Beggs
Some more great email Q&A… Question: Hi Lance, Had a question on breakouts. I know you subscribe to the breakout, then wait for a pullback to get in. I was monitoring GBP/USD last night. I set an alarm for if price got up to resistance at 1.5080. It then broke thru. Sticking to my rules…
Question: Hi Lance, In his text on support and resistance, Mike Reed talks about traders hoping the market will return to a level of support or resistance so they can break even in that trade. So are levels of support and resistance more to do with the behavior of traders than the actual value of the dollar, Thanks from Brian. Answer:
When discussing climactic reversals with newer traders, I find the most common question is where to enter. After all, it can feel very much like the commonly quoted statements of ‘jumping in front of a train’ or ‘trying to catch a falling knife’. Yesterday, (Thurs Feb 18, 2010) gave us a nice simple example, so…
I love these deeper metagame orderflow articles… seeing price action from a whole different perspective! Simply excellent.
Looking at price order flow sentiment from the perspective of what other traders are thinking and feeling is really one of the best (if not thé best) ways to to trade isn’t it.
The “who the heck would trade right into this area, or that area” statements are really powerful too. Allows one to see how professionals fish out the amateurs!
Cheers,
Keiran
Even now Keiran I still get caught up from time to time in trying to “automate” my entries via a rule based approach. But there is never anything I’ve found more powerful than a discretionary / intuitive questioning of “who is trapped?” or “who is wrong?”
As an illustration for the first chart
https://www.youtube.com/watch?v=aYjO98PHEM8
Regards,
Dima Cha
Ha ha! It looks to be right at 10:30, so I would guess he was unaware of a news release?
Hi Lance,
What’s your take on using the ladder and real time orderflow? I searched for your articles on the DOM but couldn’t find any (apologise if you have them already somewhere and I simply missed them).
Do you use them? How do you evaluate their efficacy in terms of fine tuning entry/exit and R2R?
(I am asking this here since the article pertains to order flow and didn’t know where else to post this. I wanted to keep the question relevant to the topic being discussed.)
Thanks!
~C.
Hi C,
Happy for your to comment here. But if you can’t ever find an article related to the topic, direct email is often easiest.
The DOM and associated orderflow tools are all valid approaches to market analysis and timing. If you find yourself attracted to the idea, by all means explore them. But don’t fall for the hype that currently exists in that part of the industry. They’re easy to market to new traders who crave “more information” in their search for certainty. Test and evaluate and make a decision as to whether or not they add to or reduce your edge.
For me, they’re not necessary at all. And in fact provide more of a negative impact.
In an environment of uncertainty, it’s important to take decisive action when a setup triggers entry. In this situation, “too much information” can be counter-productive in that it increases the likelihood of conflict, doubt and confusion. You can never have enough information. You can never achieve complete certainty. So you hesitate, waiting for “just a little more confirmation”.
For me, they kept me out of too many otherwise good trades.
This is just my experience though. Others have found they add to their edge. Test and evaluate and find your own answer.
What is most important is context. If you study the charts from many of the orderflow examples you see posted, you’ll note that many (maybe most) of those with good outcomes are trading in places of good context (retests of levels, false breakouts, successful breakouts, support turned resistance and vice versa etc). So get that right first. And then compare results in execution with just price action vs orderflow tools. Because I doubt they’ll give you edge if you don’t already have it. Once you’ve got it though, they might add to it. Or not. Test and evaluate.
Best of luck,
Lance.
Understood. Find my edge in the market first and test and fine tune it later.
Thanks Lance!