Help 4 Struggling Trader

[4ME2Learn 10]

It looks pretty but I am a price action based trader I hardly use any indicators.

 

for interrest sake only, please explain "price action trading".

[pipsaholic 10]

Using market structure order flow and candlestick formation along with S&R and trendlines with round numbers is all you need.

[joshdance 10]

Using market structure order flow and candlestick formation along with S&R and trendlines with round numbers is all you need.

 

Please tell me, how do you use "order flow" when you can't see the orders?

[pipsaholic 10]

type on order flow on google and yotube to learn more about it.

 

The size of the candles gives a clue. Look at the differences in the Asian session and London sessions.

[joshdance 10]

type on order flow on google and yotube to learn more about it.

 

The size of the candles gives a clue. Look at the differences in the Asian session and London sessions.

 

You're trading forex, and you have no access to volume, much less orders. You are not trading "order flow." Trading order flow requires you to be able to see executions, or the volume resulting from those executions. You have access to neither. That's what happens when you get your trading advice from youtube.

[cfrn 10]

You're trading forex, and you have no access to volume, much less orders. You are not trading "order flow." Trading order flow requires you to be able to see executions, or the volume resulting from those executions. You have access to neither. That's what happens when you get your trading advice from youtube.

 

What he said.

 

This thread has been yanked one too many times. I'm out.........

[pipsaholic 10]

But the forex market doesn't have a centralised xchange its global so its not like other xchanges so volume is irrelevant.

[joshdance 10]

But the forex market doesn't have a centralised xchange its global so its not like other xchanges so volume is irrelevant.

 

This is my point exactly. Watching order flow means watching the "flow of orders"... but you have no access to orders or even transactions in spot forex. There's no way around this; it has nothing to do with the size of candles, global sessions, or anything that you mentioned. It means studying transactions as they occur, whether that's by watching executions on the tape (which you don't have in forex), or a consolidated version of the tape such as delta volume (which you don't have), or volume at price / profile (which you don't have), or even volume over a period of time (which you don't have), or something else related to transactions (which you cannot see).

 

All you have in forex is price. You have the last traded price, and the inside bid and offer. Even those will vary depending on the bank or broker who quotes it to you. Imagine the last traded price is 1.2900. The inside bid is 1.2899, and the inside offer is 1.2900. 500 lots are bought at 1.2900, where there is a big seller sitting with 1000 lots. You have no idea this just happened, because the last traded price did not change. This is the kind of information available on a real exchange, where at least the manipulation that takes place is visible and out in the open. This is the type of information that is visible clearly for the world to see on the time and sales, which you do not have. So, you can NOT read order flow in spot forex. You are doing something, but it's not related to order flow, because you have no access to orders or executions.

[pipsaholic 10]

This is my point exactly. Watching order flow means watching the "flow of orders"... but you have no access to orders or even transactions in spot forex. There's no way around this; it has nothing to do with the size of candles, global sessions, or anything that you mentioned. It means studying transactions as they occur, whether that's by watching executions on the tape (which you don't have in forex), or a consolidated version of the tape such as delta volume (which you don't have), or volume at price / profile (which you don't have), or even volume over a period of time (which you don't have), or something else related to transactions (which you cannot see).

 

All you have in forex is price. You have the last traded price, and the inside bid and offer. Even those will vary depending on the bank or broker who quotes it to you. Imagine the last traded price is 1.2900. The inside bid is 1.2899, and the inside offer is 1.2900. 500 lots are bought at 1.2900, where there is a big seller sitting with 1000 lots. You have no idea this just happened, because the last traded price did not change. This is the kind of information available on a real exchange, where at least the manipulation that takes place is visible and out in the open. This is the type of information that is visible clearly for the world to see on the time and sales, which you do not have. So, you can NOT read order flow in spot forex. You are doing something, but it's not related to order flow, because you have no access to orders or executions.

 

I understand now why people trade other instruments outside spot forex as volume is a leading fuel for that market is that right? Is this why some traders prefer Futures over spot? By the way that info was gold!

[yiman 10]

I understand now why people trade other instruments outside spot forex as volume is a leading fuel for that market is that right? Is this why some traders prefer Futures over spot? By the way that info was gold!

 

If you want to see order flow you can look at the futures version of the instrument and still trade spot . for example you can look at orderflow for euro futures and trade eur/usd .You will have access to volume and if yopu use tools like cum delta you can do that too