Trading the order info: Wait for confirmation

I get asked a lot how I go about trading the order info we get, and I always answer that I wait for confirmation first that the orders are there and are sizeable. We do our best to ensure that our information comes from credible sources close to the market, but orders get cancelled all the time and often times aren’t as big as touted.

So in cases like the EUR/USD today, where sell orders are reported, I will wait until the level is tested and if the sellers appear in size as expected, then I will either sell immediately or more likely wait for the first small dip/rally to develop and then sell with a stop above the earlier highs. I know some people who make a very good living trading off order info alone, and they are very patient and very selective.

17 Comments

  1. Hi Sean, but above the sell orders, there are usually stops…. do you sell after the stops are swept, or do you sell if the level is tested and doesn’t break through?

  2. Brilliant advice as usual M8

  3. Hi Jerry, I’ll only sell if the level holds absolutely; either the info is very exact and solid or not

  4. Where do the order information come from? Are they on the EBS, Bloomberg/ Reuters platform in the Banks/ Hedge Funds, traders, sales?

    Can a normal retail trader gain access to these order levels easily?

  5. Bear, I think the ‘as usual’ is a slight exaggeration :)

  6. Every since I started reading forex live, my trading has improved a lot. I keep my usual techical views, but usually supported by that kind of info,

    Thank You

  7. Hi Sean, so does that mean you would be looking to sell USDJPY at around 79.10 if the offers hold?

  8. Marco, the best guy to know is a sales dealer at a big bank who deals with big hedge funds. If you can find one of them, marry them :)

  9. Marco, some trading platforms have them, you can also use IFR, cost $100+ a month for a small retail account, but I have always found their info good.

  10. In theory yes Jerry, but I don’t have the patience to trade it so I’ll leave it alone

  11. And do you get your confirmation through your contacts too or do you use EBS / Reuters for that.

    I think typical retailers are probably too bad equipped to get reliable confirmation. Not sure if price action or tick volume is able to do the trick.

  12. When you say you expect them to appear in size are you referring to a sharp rejection off the level?

  13. Many thanks!
    Sean: I’ll do my best to sell myself to a dealer! :)
    Caleb: Any good IFR to recommend?

  14. Sean, as always, very much appreciated.

  15. Thanks Sean, very nice post.. This really helps to develop rite trading mentality..

  16. Way too modest there Sean

  17. I hope someone still reads these valuable comments, but may I also ask Caleb (as Marco did) whether he can recommend a reliable source or two please?
    Also a special “thank you Sean” for your unselfish approach. Best wishes to you all.

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