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Your question tells that your percieve order flow from your perspective of how "it should be"
Instead try to watch as it is. Do not ask WHY it stops. Ask why do i think that it should not stop and why do i think stops are not the part of order flow
Why do your inhale and exhale. Why not only inhale for instance?
Probably I'm confused here. But don't you have any expectation on how "it should be"? And doesn't everybody buy/sell based on their expectations? Because everything besides guaranteed outcome is expectation. You can't guarantee profit from any of your trades, but still you are taking that trades, isn't that because of your expectation?
I mean your knowledge and experience tells you how to react in every specific situation, i.e. you have certain expectation ("When I see this, I do this", if the price shows strength, I stay, if not - I quit etc..). For example: you are going long, then you see development of lots of resistance, weakening of buyers etc... Wouldn't you tighten your SL or quit? Isn't that because of your expectations that price will probably fall or stop going up at least?
And my question is from this perspective: when we see this kind of price behavior, should we tighten our SL, take profit and run etc..? Does it show weakness, or strength, or confusion, or etc..
Or do you mean by saying "watch as it is" that we should just wait and see and then decide and this behavior tells us nothing?
So basically I'm asking about the pattern and it's meaning, and what it means for Pros and for rest participants.
Sorry for long explanation. Hope it helps to stand on one platform.
Great if you think this way. I suggest you not, but i see i was wrong.
To answer i will give a bigger picture
Expectations is a result of BELEIEVES and EMOTIONS. Buy and sell orders are the result of expectations and all of actions too. Pauses in the order flow TOO is the result of expectations.
Exist 3-4 forms of tape stream in general. There few subforms but those 4 give you clear view
1) Lightspeed train - lot of stream fast moments with small amount of pause moments. Lot of emotions and lot of volume
2) Nascar -still lot of stady fast movement moments but amount of pauses becomes bigger
3) Moderate - from time to time fast flash moments and equal pauses moments and time length
4) Swamp - lot of pauses with significant tile length and little of flash moments
In general this shows you in which stage market is. If you see 1-2 it is GOING somewhere.
If 3 it is ABOUT TO GO
if 4 go eat something
Next thing
As you see pauses THEMSELVES doesnt give a lot of info
Depends on few things ( i will not give this SORRY think of your own head - i am already gave it in parts earleir).
And one of them is comparing those pauses moments lenght and amount to the movement moments in order flow
You need STRONG conviction to ENTER a trade. To execute. If you do not have conviction - you need
to accumulate it. This is why tape stops and pauses or order flow stops and pauses.
Than conviction accumulated goes execution. If we have LOT of conviction you will see 1-2
@canunit, I had the same issues, couldn't really follow the video with the robotic voice and speed. Were you able to slow it down at all? would really like to watch the video and learn but near impossible for me in it's current form.
Thanx a lot for this info. Will you explain other parts of trading? I can't even imagine what it could be. Download more video with your explanation of trading. It's impossible to find information you gave in any books or videos.
. How your mind should be set up, so you can trade better and have better results. It is a common misunderstanding, and a common misbelief that exists in your mind, that in order to be a great trader, or a successful trader you need to predict the market. That you need to predict it on a small period, or a long period of time, or something else. Also, there is existing a misbelief that you need to have a trading plan, that you need to have some trading idea, and to execute those trading ideas or your trading plan, and that you are actually trading the market. BUT, my opinion on this thing, and the method that I use “Is to keep my head clear of all of this stuff”! I do not want to have any suggestions, or any ideas about where the market will go before I enter the trade. OK? I do not know where the market will go. It can go one direction, or another. 50/50! There is random structure and I do believe in these things. Therefore, in order to be a successfully stable trader, you always need to be uncertain about where the market will go. You need to keep your mind clear from all of the stuff mentioned, because if you will seek the 'idea' of where the market will go, then your belief system will start to create a belief 'Loop'. In this loop, your perceptions start to work a way to prove that your belief is true. Then it starts to make up this way. So if you decide that your perception starts to throw out all the information that goes in contrast or controversial to your version of going Long (or Short), that the market will go higher (or lower), and then starts to feed you only the information that proves that you are correct. This is the natural evolutional mechanism to create some sort of system, where you are doing one-for-another type 'actions'. Or you do only one action, and your mind, your physical body, and all the 'stuff' can muster this 'thing', and waste less energy on the processes as you will learn something new every time! Ok? We do not need to apply too much power to do clicks on the 'mouse' or on the buttons, because we already have (brain) 'neuron' connections, which allows us to do this with less power-energy. For example, you have never driven a car. Then you sit in a car and you need to learn how to drive this car. All the neurons, all the neuron networks planted in your mind, your brain, starts to work to understand where it needs to be running. The whole brain is working in order to understand which areas of your brain will be responsible for driving. This is very powerful, and you waste too much energy to learn this thing. However, once those (neuron) connections are established, brain start to maintain process. It is easier for our brain to maintain processes, compare to creating new ones. This is why when you have some sort of belief, your mind starts to create the belief-loop. In this loop, you stay in the same direction, and you brain maintaining this process. This is why all the perception works this way.
However, this is not about trading. In trading we must always be uncertain, so the network we have in our brain will always be in the process of learning, of rewiring (reevaluating) what we have. Constantly rewiring! Then in some period, you will work out some more connections that will already run the process in two different ways, so it will be easier for you to do this. To understand the reality of the market, we must know that is uncertain every fucking moment. The market is always uncertain! To understand this you need to separate your beliefs from the reality of the market. Ok? The charts you see, the chart patterns you see, the price patterns you see on 'tapes', the order patterns you see on Level 2, ARE existing only in your mind! Only in your beliefs. Because somehow, somewhere, sometime, your network brain system created the connections between all those things. And you believe those things exist!
For those who asking this question i have another question and advice
Question:
You placing 1000 contracts buy market order - you are a big buyer - FROM WHOM YOU BUYING THOSE 1000 contracts?
Advice:
Go watch monochrome tape to the point you will discover the full understanding of TRANSACTION
