Flow

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Trader ???

Flow

Post by Trader ??? »

I finished the Lesson on Flow and now on to Lesson 28. I have difficulty grasping the concept of flow (I guess I am not the first one). Let me put my question by an example: Lesson 28, video 1.2 or 1.3, screen 21, it says: "we see this a C, with a target to the downside of course, since we cannot go any other direction as strength pours into resistance." My question is that we won't know that strength is pouring into resistance until it has poured into it and market has already gone down. By then, this info is of no use. We can only anticipate that strength will pour into resistance based upon HTP, kind of trading etc., and then we can monitor it to happen on LTP. Is this the concept of 'flow' anticipate and monitor combined? or something else?? H. B.
pldot
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Re: Flow

Post by pldot »

Think of flow as the market's "ability to make progress in one direction or another".....and it can be seen in subtle ways before the more dramatic and definitive moves manifested by such things as dot push etc. It takes some traders a bit of time to recognize flow in its less intense, slighter forms, perhaps becaus it can be any one of, or the combination of several, of five different pieces of evidence, as descrived in the lesson. Basically you witness when the bars are having trouble accomplishing directional movement, or not.

At "C" in the screen in question we 'anticipate' resistance due to the HTP 5/9 (not shown) and the good down flow comfirms it.
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