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Order Flow Trading Glossary
1 TICK TEST/FAIL This is a condition where the market tests the prior day’s high or low or the current IB high or low by 1 tick before finding the opposing force pushing it the other way. This is generally considered a failed test of a significant area. ABSORPTION Price Absorption occurs when aggressive market participants Hit the Bid or Lift the Offer on high volume, and are met with participants who “absorb” all of the orders. The effect of this price Absorption is that price moves very little or not at all. Price Absorption can often lead to short-term reversals when the original aggressive participants give up and close their positions. See Absorption Reversal. ABSORPTION REVERSAL An Absorption Reversal Long occurs where aggressive sellers…
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Reversal Candle Patterns
Reversal Candle This indicator will colour reversal candle Works best with UniRenko style charts. But will colour candles on any chart that meets the following criteria: (Bullish) -Low is below the previous candles’ low -Closes above the previous close -Current and previous candles are opposite colors. (Opposite for Bearish reversal) Adjust the offset to customize how much lower a reversal has to go from the previous candle. You can scalp a few ticks or points using this strategy alone. More about the candle reversal here It is an excellent strategy to use when trading a Prop account PA with a trailing drawdown
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Futures Trading for Beginners using Prop Firms
Futures Trading for Beginners using Prop Firms Prop firms, also known as proprietary trading firms, are companies that provide traders with capital and technology to trade the markets. These firms offer a great opportunity for beginners to get started in futures trading, as they provide the necessary resources and funds to help traders succeed. How Prop Firms Work Prop firms typically provide traders with access to trading capital and advanced trading technology, including charting software and trading platforms. In exchange, the prop firm takes a percentage of the trader’s profits, which is known as a “performance fee.” One of the benefits of using a prop firm is that traders have…
