Order Flow Flashcards
A range based model is a very basic version of order flow. Explain a bearish range based model and bullish range based model.
A bearish range forms a range between the swing points. It breaks down from the range and then comes back to mitigate the range before breaking down. A bullish range ranges between the two swing points and then breaks up, mitigating the range for the continuation.
Does technical supply or demand contain the entire range
Yes, OBI’s are more refined. The entire zone is tech supply or demand (range of price). Price needs to mitigate to continue the swing structure
What is RIMC
Range, initiation, mitigation, continuation
Does every single move after a BOS form a range?
Yes
Drawing a box from the swing higher high and lower highs shows what?
The range, which typically gets mitigated but not always.
After a bearish BOS, should we start the pull from the uptrend?
Yes, start from top down. It is more important pull as it caused the break. A lot of times if you continue the same pull, there is no variation. The pulls will eventually line up.
In a swing 4 hr downtrend, if we see price break down but insignificantly, is it possibe to see price to break up to mitigate a previous significantly 4 hr supply that had been missed in the chain and continue back to the downtrend.
Yes.
What is the level of risk to entering all these scenarios when counter trend trading? (1) MS/Orderflow to switch to bearish. (2) Weak high to be swept then play the pullback knowing that order flow could switch bearish. (3) Lower TF orderflow to switch bearish
(1) Safest approach. Example. if we are trading the 4 hr, wait for price to break the 1 hr DZ, and pullback into newly formed Supply range. Can attempt to refine. (2) Medium. Take the weak high. Then if we see price lose the level WITH a confirmation (i.e. lower term structure break) then can enter depending on RR (3). Riskiest. In the example above, If we come into a SZ without taking the 1 HR weak high, and take a short just on an internal bearish MS and internal SZ, we frequently see price come down some and then can aggressively come back up and continue the 1 hr uptrend.
When entering a trade, is it best to make sure the demand ranges below the mitigated range you’re playing have also been mitigated.
Yes, always pay attention to see if price could have a reason to go lower when entering a long.
What are ways to think through the order flow objective to ensure a high probability setup?
Weak high taken, no remaining demand/supply lower/higher, range low/high deviated.
If there are no OBI’s in a demand range, is it possible to see an SFP of the range to go higher?
Yes
