Orderflow
Convergent Trading ES Stalk zones week of 02/22-02/25This is Convergent Trading ES Stalk zones for the week of 02/22-02/25
These are levels derived from market profile, orderflow and auction statistics
The idea is to watch what the market does at these levels and interact/do business close to those areas.
Each of these areas are either Volume Shelfs/Volume POC or Low volume nodes/Bias/Over-Under line
Al courtesy of Convergent Trading & FuturesTrader71, i'm just parsing more or less accurately the levels and zones
EURUSD dailyoverall quite a choppy week on the lower time frames for EU
But still some great opportunities.
price has failed to break the high at 1.14830 which was the daily swing high. which indicates that bearish structure is sill in tact
For me the next logical key area would be 1.11500 being an extreme OB and the current daily swing low.
Why price reacts to s&d zones before breaking themWhy price reacts to s&d zones before breaking them.
We tend to see a reaction for one simple reason;
- BFI's need liquidity to accumulate a sizable position.
So, how would a reaction provide them with this liquidity?
- Retail traders will enter aggressively at these s&d zones
expecting price to move away from them. Now, BFI's will
use all this liquidity to accumulate a sizable position,
targeting the next pool of liquidity which is
retail's stop-losses on the opposite side of the zone.
#ES Futures Thesis Trade RewievOne example of how my thesis played out today. In the morning I posted for the downside scenario for today we had - all this inventory between 4440-4480 that if gets no upside then we can see it start selling out and level we are watching are 4445-4437.75 as our PM Support and 4424.50-4418.75 as our Key Intraday Support, breaking PM support is first sign of weakness and getting under the Key support leaves the doors open for 4405.25-4403, 4392.25-4389.75 and 4378.50-4374.75 as our next level where we should see good support unless we break that and 4362.75-4345.25 level then we can see more downside. Trade entry was when we failed to get back in previous value with a stop right above and take profits at each level lower until we found buyers at our next big support.
GBPUSD Smart Money Orderblock SetupLook for lower time frame confirmations.
Long term target is the Daily Low
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THIS IS NOT FINANCIAL OR INVESTMENT ADVICE AND SHOULD NOT BE INTERPRETED AS SUCH.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
USOIL Price Action is proving it’s time to go longAs you can see in the chart, price deeply retraced into the 1H Bullish Orderblock in the red box, specifically around 90.650, and respected it because it did not close below the low end of the orderblock.
We can see that there are sellers still short from 93.267 and we have Bullish Order-flow in the market, so we would seek to see the sell stops wiped out there as a suggested target for taking profits.
However, in the grand scheme of this move, there’s Sell-Side Liquidity also resting at 95.785, so you can expect a 10-20 pip sweep above that before retracing and going further long from there. Take partial profits along the way. There’s no need to collect the “lion’s portion” of the whole move.
Good luck trading.
1-Hour Order Block Madness On GBP/USD. 2 Order Blocks Hit TargetHappy Wednesday!
Today we are looking at 2 order blocks that played out yesterday.
OB 1) – Yes, I know it sounds like star wars haha!
We can see that the order block zone ( Highlighted in yellow ) was an area of interest and used for liquidity as our entry perfectly sniped.
I always like to place my pending order at the 50% halfway mark in the order block zone.
Price came up and indeed pierced into this zone before pushing down again.
The target was the previous support below which coincidentally gave way for our second OB.
This gave us an RR of 1 / 4
OB 2)
Highlighted in yellow – Gave us a RR of 1 /4
You can see how these order blocks were like ping pong. It bounced from the second one below into the first one, back down into the second one, sniping the second long entry and going back up to the second target.
*NB, these do not always play out like this. It’s about finding price structure that has been broken correctly and trying to attain if the area of interest is at a place where the price needs to come back to push the price further in the opposite direction.
Market makers take advantage of every retail trader like you and me all the time. When we learn how to follow the money, we can start to see these patterns form. They don’t work all the time, but when they do, it can be a great strategy to adopt and use ( only once you’ve backtested it to see what works best for you.
Have a great day.
See you in the next one.
USDCAD - Smart Money Concepts Institutional Order Block StrategyGood Day!
High-level summary of trade:
i) 'Support' sitting at structure with 78.6% fib, induced Retail Traders to buy too early
ii) Break and re-test of support encouraged a Retail selling frenzy
iii) Both types of Retail traders above, would have likely been stopped out
iv) Our first trades were stopped at BE
v) Re-entry based on Wyckoff schematic, with 'Spring' confirmation, before swing trade with TP3 R/R in excess of 9.0
Let me know in the comments below: what you thought of this trade?
Check my profile for more info on us, and how we trade. Cheers!
Bullish Order FlowThis weeks price action was phenomenal on EURUSD. We had a clear bullish run respecting the order flow of the move.
After each break of structure, price was mitigated back to the order block that caused the breakout.
Over and over like clockwork.
If you can understand and grasp concepts like this, you can trade and stack positions when we have clear trending weeks.
Potential SELL to BUY on XAUUSDGiven the bearish engulfing displayed on Friday NFP I will be setting my SELL LIMITS at the top of the Fair Value Gap/Imbalance, and SL just above the swing high. BUY LIMITS are set at the 4H Order Block that has yet to be mitigated. Both are decent RR trades.
Please note that this is not financial advise, and is just merely the setups I am looking at taking in the week ahead on XAUUSD.