Using Order Flow To Enter Trades

From Reven Wood’s blog:

When I was a losing trader I would interpret a large bid coming in as strength and would go long, then have to add, then get stopped out 9 out of 10 times. I did this for 15 years until I realized I was seeing the trade completely backwards. I have to give credit to my trade journal for pointing it out. This trade is against everything we learned in ECON 201. The rules of supply and demand are tested in this clear example of panic from wrong way traders.

Continued

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: