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Charting VS orderflow

  #11 (permalink)

Wiltshire, United Kingdom
Trading Experience: Beginner
Platform: Jigsaw daytradr
Favorite Futures: US Equity Index Futures
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Grantx View Post
The problem though is that sometimes this absorption level does break which makes the whole clever analysis a little bit pointless IMO.

It does allow you to use a much tighter stop though. Instead of just putting a stop beyond the nearest swing high or low like people tend to do, if you see that your level stops absorbing and price gets through it by a few ticks and now the bids or offers are quickly being cleared out and pulled you can hit out too and reassess. Smaller stops gives better R/R on the winners and less fear of taking a loss. And If price clears out a few stops then comes back through that level you can always re-enter with more confidence.

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