How to Beat the Institutions
At Their Own Game

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The Secret that the Big Banks
Don't Want you to Know

Ricardo Menjivar, PhoenixTradingStrategies.com

What you are about to learn will change the way you look at trading the Foreign Exchange markets. In this chapter, you will learn how the banks hide their plan of action through their volume activity by using algorithmic high frequency protocols that they have designed to hide their real intent from the Retail Trader. Now, if I have your attention, then don't stop reading because what I am going to show you in the coming pages will finally make you aware of the new truth. A wise man once said the truth will set you free but in this case, the truth will greatly improve your trading consistency.

You will learn about a new state of the art technology that has been created to decode the Market Makers/Banks intent. You will learn to take fear and doubt away from your decision process before entering the trade.  You won’t use conventional indicators like Moving Averages, MACD, Stochastic, RSI, or others because the banks have counter programmed those outdated indicators and that is why you can't get an edge on the trade. Because of this, many of you turn to chart pattern recognition programs that do not work for you either. So do yourself a favor and continue reading this chapter and make sure to watch video. We will demonstrate how we made over 700 pips in one night using this system.

One of the things that you will discover is that with PhoenixTradingStrategies.com you have reached the finish line. We are the final frontier when it come to Order Flow trading and Volume Price Analysis.

What Is the Forex Made Of?

The Forex is a market created by a network of banks that are in the business of buying and selling currencies. Most banks and retail traders in many cases trade twenty eight (28) pairs that are derived from the eight (8) major currencies which are the following:

USD, EUR, CHF, GBP, JPY, AUD, NZD, CAD.

EUR/USD      EUR/CAD      EUR/CHF       EUR/GBP       EUR/JPY       EUR/AUD

EUR/NZD      GBP/USD      GBP/CAD      GBP/CHF       GBP/JPY        GBP/AUD

GBP/NZD      CHF/JPY        CHF/CAD      AUD/CHF      NZD/CHF      USD/CHF

AUD/USD     AUD/NZD     AUD/CAD     AUD/JPY       NZD/USD      NZD/CAD

NZD/JPY        USD/CAD      USD/CHF      USD/JPY

Now you and I both know that everyone out there emphasizes that you should only trade the majors because that is where most of the volume is traded. There is some merit to that, but I will show you that they have a different agenda that does not always apply to the major pairs.

What are the majors?

EUR/USD , GBP/USD , AUD/USD , NZD/USD , USD/CHF , USD/JPY , USD/CAD

Currency Portfolio Rebalancing

Currency Portfolio Rebalancing is a theory where the Market Makers/Banks base their decision process when they create their algorithms. The whole purpose of this theory and the protocols are designed around managing their risk and exposure with currencies in the market. You see the banks cannot have too much exposure of one particular currency and must maintain a balance between the (8) eight major currencies. So they will buy and sell currencies all day long to manage their risk. Retail traders don't think about this because they get too caught up in other information that doesn't matter.  

Currency Portfolio Rebalancing is the idea that money is in continuous motion but that there is a balance that must be maintained between the portfolio of the eight (8) major pairs. While some currencies are trading within a specific frequency of balance others are taken out of balance and then brought back into balance. The example below portrays this concept.

The example above shows how each individual currency is trading against the other seven (7) currencies. It depicts how money is in continuous motion by showing that no currency can trade out of balance for too long without it being brought back into balance. For example, the orange line represents the (GBP) British Pound and shows how it had been trading at frequency of strength before being weakened and brought back into balance. The same thing happened to the (NZD) the blue line which was weakened against all seven (7) other currencies and then traded back into balance for the portfolio of (8) eight currencies. The purple line represent the (JPY) Japanese Yen that was trading in the middle and in perfect balance. This showed that there was no particular interest by the Market Makers to take it out of balance.  

In theory, it seems logical but how do you apply it in a real trade? This is a good question, and we will get to how you apply it in the live trading later.

Phoenix FX Volume

Let's talk about volume in the FX Market. Reality is that there is no centralized exchange for Forex and that is why you cannot quantify the real volume that the Banks/Market Makers are actually trading. This has been a way to keep the retail trader in the dark. So we have created a volume indicator that will help the retail trader decode their order flow by synthetically creating volume that can be interpreted and show the degree of interest that the banks have in rebalancing their risk at certain price levels. We are able to isolate buying and selling volume numerically per bar per time frame. So for example, if you are on the (15) fifteen minute time frame, this indicator will show how many millions they are selling and buying in the same candle giving you the depth of the market per candle that you could never see before.

As we continue,  you will discover that our volume indicator is better than anything that you have ever used to define order flow because it is easy to interpret and can tell you if that candle is really bullish with bullish volume or is really a bullish candle with bearish volume.   

In the example below, you will see how we identify all the volume in the candle that we tagged with a white arrow. Just that one candle had a total of 429.8 million that was quoted in that one bullish green candle that moved a total of 32 pips. More importantly is that within that candle we were able to isolate in panel (2) two, the buying and selling volume that was quoted inside that bar. Showing the real emotion that drove the candle to go long. This has never really been seen before by the Retail Forex Trader. Now imagine if you knew when it mattered to look at the volume and understand that they were rebalancing their risk by offsetting their short positions before driving the trade long the way they did here. You will see later how valuable this information is to your decision process because our software alerts you when you should be analyzing the volume per candlestick because the market makers/banks have decided to execute their plan of action at a particular price level.

In the example above, you see the volume bars and a line that runs in the middle which is the mean. The to the far left that candle looks like a shooting star and is a great example of a bearish candle with bullish volume  because the little gray line on the red volume bar shows that the volume settled with a bullish outcome. So yes interpreting volume does matter at certain price levels where they have decided to trade away from.

The Phoenix Power Dots

Why is it that retail traders are the last to know before volume and momentum are driven into a currency pair? Why can't that information become more noticeable to the human eye? That is question that all traders ask themselves because they lack the right information to plan their trade out before the Market Makers/Banks decide to move the market. The Power Dots is an algorithmic piece of art that we created to identify when the Market Makers/Banks are about to begin rebalancing their trades around a specific price level where they had chosen to offset their short orders in order to drive the trade long. The example below shows a graphic display of that powerful information that will alert you hours in advance so you can plan your entry, stop loss and even price target without fear.

In the example above, you see the volume bars and a line that runs in the middle which is the mean. The to the far left that candle looks like a shooting star and is a great example of a bearish candle with bullish volume  because the little gray line on the red volume bar shows that the volume settled with a bullish outcome. So yes interpreting volume does matter at certain price levels where they have decided to trade away from.

The Phoenix Power Dots

Why is it that retail traders are the last to know before volume and momentum are driven into a currency pair? Why can't that information become more noticeable to the human eye? That is question that all traders ask themselves because they lack the right information to plan their trade out before the Market Makers/Banks decide to move the market. The Power Dots is an algorithmic piece of art that we created to identify when the Market Makers/Banks are about to begin rebalancing their trades around a specific price level where they had chosen to offset their short orders in order to drive the trade long. The example below shows a graphic display of that powerful information that will alert you hours in advance so you can plan your entry, stop loss and even price target without fear.

The Gold Dots are the Phoenix Power Dots. In this example above you can clearly see how in the thirty (30) minute time frame they plotted at 20:00 hours above the green line which is another price level that plotted in a higher time frame isolating the price level that the banks refused to break support because if they did they would also trigger other algorithms from other banks that would create a selling frenzy instead of driving it long the way they planned for hours while they offset their short positions. 

And where you see the Power Dots form is exactly where the banks do a lot of high frequency trading so when you combine the Phoenix Volume with it you can see how desperate they are per candle to rebalance their orders but never trade below the Power Dots because their intent here was always to go long 200 pips to the upside. 

Now think about this the Power Dots began to form five (5) hours before the trade went long. So you had a five (5) hour window to determine your entry, stop loss and take profit target.

This is powerful information that I am sharing with you and you will appreciate it even more when you see our video and how we made over 700 pips in one night with 4 trades using this software.

In the example below, we combine all the indicators together to tell you the story. You can see in the data box on the left the Power Dots formed at 1.1320 which was right above 1.1306 where the green line was plotted. So the price of 1.1320 was established by the Market Makers as the price level that they were going to aggressively rebalance their short positions. The first Gold Power Dot shows the amount of volume that they were desperate to sell. In Panel 2 on the Data box you can see that they were desperate to offset -292 Million on the sell side against 231 Million on the buy side. Leaving -60 Million that they could not offset in that candle. So you see this price level is where they were going to do all their high frequency trading to get out of their short positions before driving this trade long. Thus, the reason why we call this Order Flow Trading with Volume Price Analysis.

So when you see the combination of facts and numbers, is it fair to say that they have counter programmed candlesticks? Without this software alerting you and calculating all this information for you to define and decode the Market Makers/Banks intent you would have never thought that they were really intending to drive the trade long over 200 pips.

Finally, we put you in control of the trade by creating a Market Analyzer that will alert you when the Gold Power Dots form in any of the 28 currency pairs that you prefer to trade. This is the icing on the cake because it reduces your analysis time to when you should be looking at the market not being a slave to it.

You can program it to alert you when it says Analyze Me. This tells you that Power Dots have formed at certain Price Levels that are of priority interest to the Banks. You can see below that there are five (5) Currency Pairs and one (1) the E-Mini Nasdaq that are in play. This takes your focus to what the banks want to manipulate not what you think is going to happen. So if you are ready to trade the right way, you will want to add this suite of indicators to your arsenal.

Conclusion

Whatever you decide to do, I want to wish you the very best in your journey to Trading the Forex Markets. I hope that in this journey you choose PhoenixTradingStrategies.com as your guide to staying (10) steps ahead of the Banks.

Special Offer:

PhoenixTradingStrategies.com invites you to take advantage of this unique and one-of-a-kind tool kit that will make your dreams come true.

With this offer you get the following:

1) Phoenix Power Dots

2) Phoenix Volume

3) Phoenix Sentiment

4) Phoenix FX Radar

5) Market Analyzer

6) Three (3) Day Training Course that consist of four (4) hours each day.

Don't forget to check out this video as we demonstrate how we made over 700 pips equivalent to $7000.00 in one (1) night by just trading 4 pairs.

About Ricardo Menjivar

Ricardo Menjivar a licensed Futures and Forex Broker who started trading over 10 years ago as a retail trader like many of you. He decided to become a licensed Futures and Forex Broker in 2008 where he collaborated with a team of software developers to bring out the first Electronic Communications Network platform for the retail FX traders. 

As a broker he had the ability to deal with many software developers, CTA, Prop Desk Traders and Money Managers that were trading the Forex Markets. That is where he discovered the protocols that the Market Makers / Banks were using to report their order flow to the Broker Dealers. You will not find a better individual to guide you in this maze of digital warfare.

Ricardo chose to create PhoenixTradingStrategies.com in 2014 for the purpose of helping retail traders learn the truth behind the deceit the banks have created to cheat the retail traders out of their money. He has chosen to share his knowledge to help individuals like you learn how to correctly analyze and trade these markets.

Award-Winning Approach for Identifying
Institutional Trading Opportunities

Rob Hoffman, BecomeABetterTrader.com

The Hoffman Inventory Retracement Bar (IRB) Trade

Developed and used to win trading competitions around the world, the Hoffman Inventory Retracement Bar (IRB) Trade has become one of the most popular ways to identify where short-term countertrend institutional inventory has subsided and when it’s time to re-enter into a trade’s original trend direction. What you will learn here is how to identify when the conditions arise to make the trade, the entry points, and exit strategy.

What is the Hoffman Inventory Retracement Trade (IRB)?

The IRB Trade is a strategy that is used to identify specific types of institutional trading activity that is counter to the prevailing trend at hand, and then identify entries when the short-term countertrend inventory activity has come to an end and the market is likely ready to resume’s its original trend.

While it is common folklore in the investment industry that institutions, like wolves, travel in packs, the reality is that institutions are not all sitting around at a table conspiring as a group about how to part retail traders with their money.  The institutional investment business is extremely competitive and these firms are very much out for themselves and have their own objectives and performance metrics to achieve to appear most attractive to prospective investors at any given time.

Therefore, this strategy is designed to identify when one or a handful of institutions are moving inventory in and out of the market and are straying away from the markets current path causing a short-term retracement against the trend. We are subsequently looking for the market in question to resume its preexisting trend when those short-term countertrend institutional activities and inventories have dried up.

The Rules For The Inventory Retracement Bar (IRB) Identification

IRB Characteristics

In an uptrend – Look for candlestick bars that open and close 45% or more off their high.

Figure 1 shows four individual and unique examples of the IRBs in an uptrend for illustrative purposes

In a downtrend - Look for candlestick bars that open and close 45% or more off their low.

Figure 2 shows four individual examples in a downtrend for illustrative purposes.

Trend Identification

In the absence of the advanced trend identification systems Rob Hoffman uses, a simple approach to trend identification is looking at the 20 EMA (Exponential Moving Average) and asking yourself if it appears to be in approximately a 45 degree angle based on the timeframe you’re looking to trade over the 20 bars of data (i.e. 5 min., 60min, Daily, Weekly, etc.).  The next higher timeframe above the one you’re looking to trade should also be flowing in the same direction.  For instance, if you’re trading off of a 5 minute chart and it’s in an uptrend, you would like to see that your 10 or 15 minute chart also in an uptrend.  It should be flowing in the same direction.  If it’s sideways, or worse yet, trending in the opposite direction, your trade is much more likely to fail. 

The Entry Strategy

Once an IRB and proper trend is identified, the next step is to allow the market to move along and wait for the price action to break one tick/cent/pip below the low of the IRB in a downtrend.  In an uptrend you’re looking for the market to break one tick/cent/pip above the high of the IRB.  While it is not an absolute, it is preferred that the price breaks beyond the IRB within the next 20 bars based on the time period you’re trading.  For example, if you’re trading off of a 2 minute chart, you would ideally like to see the break in the next 40 minutes. In general, the sooner (i.e. the next five bars as an example) it is better for trend resumption.

The Trailing Stop Exit Strategy

While many traders are specific dollar target traders, the preferred method is more of a support and resistance target based methodology backed up by a trailing stop to ensure you are not giving back those profits during any snapbacks against your position.  

Typically, Rob Hoffman prefers a trailing profit stop moved up to 50% trailing of profit achieved when you’ve made it 50% of the way to the intended overall profit target.  Then move the trailing stop to 80% of profit earned as you approach 80% of the way to your intended target.  Then move the stop to 90%+ of profit achieved as the major support or resistance target level is hit. At this point, if no further progression is made in price, then trail right to the current bid/offer with the intent to exit.  If one more spike of energy comes in to trap unsuspecting retail traders with a false breakout, we manually trail immediately behind price during the spike until it pauses, then we’re taken out with profit.  Either way a win-win trading opportunity. Common major levels include key Fibonacci levels, previous day’s highs and lows, daily, weekly and monthly pivot points, etc.  For maximum comfort with the strategy, it is preferred that you use this with your own favorite support and resistance levels.

Figure 3 Live Trade Example: Below the middle chart highlights in yellow the intended target, a pivot point.  As we approach 50% of the way to the target, we trail the stop to 50% of profit earned.

Figure 4 Live Trade Example: As we approach 80% of the way to the target, we trail the stop to 80% of profit earned.

Figure 5 Live Trade Example: As we approach intended target we trail the stop to 90% of profit earned.  This gives the trade an opportunity to have one more false breakout move above the target that allows us to pull out a little more profit.

Figure 6 Live Trade Example: If trade holds target and fails to break through we move stop to current bid/offer and wait to be taken out of the trade.  If one more spike of energy comes in to trap unsuspecting retail traders with a false breakout, we manually trail immediately behind price during the spike until it pauses, then we’re taken out with profit.  Either way a win-win trading opportunity.

Figure 7 Live Trade Example: The bid was hit and the maximum profit achieved!

Stop Management

Based on the premise of this trading strategy, the expectation upon the entry is that the market will continue into the original direction it was heading after its brief institutionally driven pullback against the trend.  Very frequently, after breaking through IRBs, the market will actually rapidly accelerate with fast action and wide ranges as everyone starts to realize that the brief pullback was merely a pause by one or a few institutions against the intended direction as the market moves to catch up with its original intent.

With that said, once a trade is entered, the price should not retrace back beyond the opposite side of the IRB.  For instance, if the trade is entered one tick/cent/pip below the low of the IRB in a downtrend, it should not stop and reverse to one tick/cent/pip above the high of that IRB.  If it does, that market may be forming more of a reversal pattern and thus the need to exit the position and move on to the next opportunity or use one of Rob Hoffman’s phenomenal market reversal strategies to capture the move. 

When not to use the strategy

This strategy was primarily designed to identify and take advantage of trend continuations after counter trend institutional inventory exhaustion.  Therefore, this trade is not to be used in a sideways market conditions as continuation failure will frequently occur. 

Why This Strategy Works

In general, the market tends to trade directionally with as few retail traders on board the correct direction as possible.

This strategy is so effective due to its ability to find high probability areas where three things are happening to retail traders in an uptrend:

1. Buyers are being distracted from taking long side trades when they see the pullbacks off the highs, scaring them into                 believing the move is over.

2. During pullbacks, sellers are being given false hope that any shorts taken earlier in the uptrend may finally start to work.

3. Buyers who bought the high during rapid wide range ascents hoping it will go higher get stopped out on the pullback.

After all of these events above, once a new IRB to the upside appears and is pierced, the market is much more likely to move without all of those traders above on the right side of the market.

In a downtrend these three things are happening to retail traders:

1. Sellers are being distracted from taking short side trades when they see the pullbacks off the lows, scaring them into                 believing the move is over.

2. During pullbacks, buyers are being given false hope that any buy side trades taken earlier in the downtrend may finally start       to work.

3. Sellers who sold the low during rapid wide range descent hoping it will go lower get stopped out on the pullback.

After all of these events above, once a new IRB to the downside appears and is pierced, the market is much more likely to move without all of those traders above on the right side of the market.

Used During International Trading Competitions

Figure 8 shows one of the seven trades taken using this strategy during the International Trading Competition held in Paris, France.  The black vertical arrow highlights the IRB and the black horizontal arrow shows the intended area of entry for trades using this strategy.

Rob’s Strategy Checklist

1. Strategy Name: Hoffman Inventory Retracement Bar Trade (aka. Hoffman IRB)

2. Strategy Type: Trend Continuation

3. Time Frame: Intraday as well as daily and weekly signals

4. Setup: IRBs are created where the open and close of the bar are 45% or more off the low in a downtrend and 45% or more off the high in      an uptrend

5. Entry: One tick/cent/pip below the low of the IRB in a downtrend and one tick/cent/pip above the high of the IRB in a uptrend

6. Stop-Loss: One tick/cent/pip above the high of the IRB in a downtrend and one tick/cent/pip below the low of the IRB in a uptrend

7. Trailing Stop Exit Strategy: 50% of profit achieved until you approach a major support or resistance level, 80% trailing when 80% to          target, then move the stop to 90%+ of profit achieved as the major support or resistance level is hit.

8. Risk And Money Management: <1% per trade

9. Average Number Of Signals: Every instrument and time duration will be different based on its frequency of trending.  However for active traders as an example, in general, it is possible to see as many as 25+ IRB on a 2 minute chart over a 24 hour period. 

Key Points To Remember

No more weight is given to any IRB based on whether its close is above or below the open (i.e. green or red candle).

In addition, think about the concept of over extension. If the IRB has an extraordinary range as compared to the Average True Range of the last 10+ bars before it then the break back through the IRB is far more likely to fail.  This will more likely result in an entry that has a higher likelihood of reversion to the mean as much of the energy and profit opportunity has potentially dissipated leaving the trader with a much smaller profit or perhaps a stop loss.

Trail your entries to reduce the risks of reversion to the mean while still giving a trade a chance to push into your intended direction.

Use proven trend qualification tool like Rob Hoffman’s. In the absence of a well-tested tool of your own, trade in the direction of an approximately 45 degree angled 20 EMA.

This strategy has very diverse applications across many markets and asset classes.  For instance, in addition to trading conventional equities, futures, options and FOREX instruments, traders can consider using this strategy to analyze underlying equities and then trade high delta, in the money options plays as an example for active options day traders.  So very diverse indeed.

Conclusion

What we have shown you here is a simple, award winning strategy that you can take away and explore here today.  Rob Hoffman has used this tool to help him secure wins in many of his 19 domestic and international trading competition wins. It is an excellent tool used for identifying where retail traders are misjudging the markets movement.  It shows where one or more institutions is temporarily breaking away from the trend due to short-term inventory acquisition or liquidation.  Once that inventory need is exhausted the overall market is free to resume the existing trend offering new opportunities for retail traders to trade back in the direction with the overall trend.   

THE SPECIAL OFFER

ABOUT ROB HOFFMAN

Rob Hoffman is the president and CEO of Become A Better Trader, Inc. and BecomeABetterTrader.com.

Expertise: STRATEGIES

Rob Hoffman is 19-time domestic and international trading champion trader who has won more live, real-money only, domestic and international trading competitions than any other trader in the entire world.

Rob is also an internationally recognized professional trader, frequent speaker for top brokerage firms and financial exchanges, skilled educator and passionate mentor to proprietary traders, portfolio managers, and hedge fund managers from around the world. 

Contact Rob at rob@becomeabettertrader.com or his team at support@becomeabettertrader.com. His office number is 847-235-6131.

How To Swim In The Futures Market Without
Drowning In The Institutional Rip Current

NOFT-Traders.com

You stand in the ocean. The waves pound your back. The force staggers you. But it is fun. The water rushes out. The current is powerful. It pulls you outward.

A trough has been created by the heavy current. But you feel safe. Your feet are firmly planted on the bottom. Suddenly, a much larger wave hits your back. It knocks you from your feet. Your footing is gone! 

The water from the previous wave flows out; holding you in its powerful grip. It won’t let go! It is dragging you out to sea. IT’S A RIP CURRENT! 

Will this be where you meet your maker…? 

If you know how to swim out — no. 

If not? Then you’ll be another rip current casualty. 

And the same holds true in your favorite Futures market... 

As if they are caught in a rip current, powerful institutional forces are dragging your futures trades away from you. You don’t see these forces; but you can feel them. You know they are there and you feel powerless to escape their grip.

Surely, you think, there must be a way to escape this fate! 

You are right. There is. 

You can learn to see the unstoppable forces that create a rip current. And there is a way to see those same currents building in the futures market. 

When you can see these powerful currents, you can escape them. Then you can save your trades from the institutional currents. 

Even better, you can start to swim WITH them. 

Why should you care what the institutions are doing? 

A narrow break in the sand produces a rip current when the water flows out. Large block orders in a narrow range creates the same current in the market. As the institutional money flows in or out, it carries everything in its path with it.

Their money creates the current flow. Your small orders that are in the way are grabbed by this powerful institutional current. You then watch helplessly as the unstoppable force of order flow drags your orders out to sea. The institutions then become the sharks that feed upon your helpless orders... 

If you don’t know where the institutional current is going, you will be constantly swimming against it. And you just can’t win that contest. Those who continue to try will drown. 

Their portfolios will simply become lunch for the institutional sharks. The sharks that are waiting for every order the rip current delivers to them. 

A way you can win WITH the institutions 

How does that happen? You go with the flow — the institutional order flow. 

You look for where the powerful institutional currents are taking the market. Then you just go with the flow. You start to swim with the sharks; instead of fighting hopelessly against them. 

To do this, you must learn to see the currents they create and where they are flowing. The flow of institutional money creates these currents. Order flow sequence tracking allows you to identify them. 

How do you see institutional rip currents? 

Beach areas with known rip currents are often easy to spot. The local authorities will usually put up clear signs. These signs will warn of the potential danger. They also sometimes provide instruction on how to escape a rip current.

Swimmers are expected to heed these warnings. After all, their lives might be at stake.

Have you seen the futures market version of these? We have! It’s called order flow tracking.

Unfortunately for traders, the futures market doesn’t post warning signs. You are expected to know the risks involved and how to protect yourself. You had better know how to swim in the current if you don’t want to drown. 

Sometimes these risks are easy to see. Sometimes they are not. Experienced swimmers and seasoned traders know what to look for. If you don’t, you may not see the warning signs. But, just because YOU don’t see them, doesn’t mean they aren’t there. 

To the inexperienced eye, the picture below looks perfectly normal. A nice piece of isolated beach for taking a leisurely swim. However, a seasoned swimmer would immediately see the hidden danger of a rip current.

If not, maybe the water and the futures markets aren’t safe for you...YET!

The first picture is quite representative of a public beach. Highly visible signs warn of potential unseen danger. The second picture is much more like the futures market. The same real danger is present. You are just expected to spot it on your own. 

Seasoned swimmers don’t drown; seasoned traders don’t go broke. The secret they share? They know how to spot a dangerous current and what to do about it. 

Order flow sequence tracking allows traders to spot the institutional rip currents like an experienced swimmer reads the ocean. 

We will never eliminate the rip currents in the ocean or the futures market. We can, however, learn how to navigate them safely. To do so, we need to understand order flow tracking technology. 

Does this really work? 

It sure does. It works so well that entire programs, like our Institutional Edge System technology, have been built around it. This technology allows you to literally rip the cover off the market order flow. Then you can view and analyze the currents hidden inside. 

In other words, it lets you see the unmarked rip currents. Swimmers drown in rip currents because they fight against them. Traders drown in order flow currents for the same reason. 

When traders look at a candlestick chart using order flow sequence tracking technology, they can actually look inside each candlestick in the chart and see each trade that was executed to produce the result represented by that single stick. 

When the buyers are in control...

Traders looking inside each stick will see more valuable information. The trades are broken down into two columns. The left-hand column in each stick shows trades executed at the bid price. The right-hand column shows trades executed at the ask price. This allows a trader to determine whether the buyers or sellers are acting more aggressively.

In the stick shown at left, you can see that far more orders were executed at the ask price than the bid price. The aggressive buyers were driving the market during this time. The order flow was with the buyers. This would push the price higher.

If the sellers rule the moment...

The stick at right shows an example where the order flow volume was being dominated by aggressive sellers. The imbalance displayed here tilts to aggressive sellers compared to buyers. In this instance the price pressure is going to be to the downside of the market.

Do the institutions use order flow tracking?

Not really. They are the ones creating it. The institutions are trading based on pure market value. They are moving large sums of money. To do so, they have to trade aggressively. But, don’t think the institutional sharks didn’t see your orders on the lunch menu. Institutional order flow creates the current that moves tasty morsels like your orders onto their plates. But, that doesn’t mean just one institution. The market moves from the combined influence of all of the institutions. And they are ALL trading on their perceptions of value. Now can you start to see why these currents are SO powerful? 

Take a quick look at what happened at 10:00 A.M. and 2:00 P.M. on October 8, 2015 in the gold market.

Order flow sequence tracking technology would have shown you the aggressive buy demand building as those orders were entered. Do you think any institutions were caught off-guard by these moves? Or, do you think they were the ones who caused them?

Order flow sequence tracking technology would have also allowed you to see the buy demand disappear as the market peaked around 2:20 P.M. If you had known the aggressive buy orders were disappearing, you could have gotten out before the big drop that followed. 

How many individual traders watched helplessly as their orders were dragged out to sea and served as lunch to the institutional sharks? This is why understanding and effectively using order flow sequence tracking is so important.

Would you have seen this coming with your current trading technology? Or would your trades have been the main course for the institutional sharks? 

You could have seen it coming if you had — and knew how to use — the right order flow sequence tracking technology! 

But, how does this help the little guy? 

Experienced swimmers and experienced traders do not fear rip currents. They know how to swim WITH them until they safely exit to their plan. Good traders know how to swim with the flow as well. 

The first rule of trading is — don’t lose money. Understanding order flow sequence tracking will help get you there. It shows you where the potential danger exists. 

The second rule of trading is — know the risk. 

When you can spot the rip currents of order flow, the risk of OTHERS becomes YOUR opportunity. Good traders profit by feeding on the trades of the less educated. 

The institutions are the big sharks. The good traders just learn to swim along with them. Unnoticed and out of the way. Like little futures market remoras. 

These are small examples of the power of order flow sequence tracking. This technology can allow you to spot the rip currents in the market and profit — rather than drown — in them. 

The experienced swimmer can spot a rip current and turn a dangerous situation into a safe one. Order flow sequence tracking allows good traders to turn dangerous risk into profitable opportunity. 

It shows us how to spot the powerful money flow in the futures market. It shows us how to swim with it instead of fighting against it. 

The swimmer fighting against a rip current tires and drowns. Traders fighting against order flow are swept out to sea and devoured by the institutional sharks. 

Would you rather feed the institutional sharks or let them feed you? 

What you see here is just the tip of the iceberg in terms of order flow sequence tracking. Hopefully, you now see the gap in your trading approach it can fill. 

The institutional rip currents are always there. The institutional sharks are always looking for their next meal. It’s time for your portfolio to start swimming with the institutional sharks instead of being eaten by them! 

It’s lunch time in the futures market. Would you rather become a diner or be served as the main course? 

If you are not using order flow sequence tracking you should seriously consider it. If you want to learn more, our Institutional Edge System teaches order flows from A-Z. 

THE SPECIAL OFFER Watch this free training as I show you how to earn a full-time income hunting and stalking order flow sequences.

About NOFT-Traders

The NOFT team is made up of highly respected institutional trading figures in the professional trading world. With decades of experience, they’ve been top performers in premier Prop firms in the US and Europe. They’ve headed trading for investment banks, hedge funds, commercial banks, and insurance risk management.

Even more than building fortunes, the NOFT team specializes in training traders. They’ve created the ultimate program that does just that — takes hopeful traders and quickly brings them to the professional, full-time trading level.

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