Ok so from our discussion yesterday I was talking about imbalance of order flow and its importance.  As you can see here on the right of this chart you have volume of orders, bid size , price,ask size.  This is the orders being matched at the time of the pict price was at 1.3239  58 bid orders being matched to 32 ask orders.  Pay attn to the volume at the top big numbers.  Now these orders can be a number of orders buy orders, sell orders, stop losses, take profit orders.   In my opinion the heavy order volume was buy take profits which OCO creates more sell orders and alot of sell orders thus when price hit into that area weend up with a sell off.

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Tags: chart, eur/usd, flow, order

Comment by forex max on December 27, 2012 at 5:21pm

well peter this has come up many times in my years and i look at it this way. From a psychological point of view every one has access to the same information.  My stochastic looks just like your or the other 2 or 3 million people using it.  The picture i provided was mostly for a visual however with the power of 6  (6 people knowing 6 people etc)  we are all connected, and because everyone every where looking at the same information.  this information can come from almost any broker and it will be fairly accurate imo.

Comment by raj patel on December 27, 2012 at 6:07pm

HI  Max, I have been meaning to ask you if you are the same Max who worked as futures dealer at BGI in 90's early 2000 I remember him showing me the inter market terminal with order flow from one server and how the stop run barrier could be hunted.It was also interesting to see  how the prices would race up/down to fill a limit order which was cancelled a few pips away from been filled.

The only drawback of this system was that one could only view the order book of one server and brokers connected to them.

Comment by Elric on December 28, 2012 at 4:56am

nice explanation Peter. By the way, you from SG? Curious

Comment by Elric on December 28, 2012 at 7:48am

Hey Peter, i meant it by Singapore. not any organisation lol =D

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