On the above graph the 2 horizontal lines represent the Bank Flow pending Buy/Sell Orders. In this example they tend to coincide with support and resistance on this pair. So from an institutional viewpoint, the Banks wish to buy at support and sell at resistance and vice versa.
How we use this information is we sell on the 1st red candle above the Bank order resistance line. This is shown by the black arrow. Logically, this means that there is not enough strength in the underlying trend to absorb all the bank flow orders and a retrace is due.
As it was, this trade would have yielded over 200 pips.
Let's see another example*...
On the above graph the 2 horizontal lines represent the Bank Flow pending Buy/Sell Orders. In this example the Banks wish to buy at support and sell at resistance and vice versa.
How we use this information is we buy on the 1st green candle above the Bank order support line. This is shown by the black arrow. Logically, this means that there is not enough strength in the underlying trend to absorb all the bank flow orders and a retrace is due. The exit was at the top of the Keltner Channel, which corresponded with the recent resistance.
As it was, this trade yielded would have 156 pips.
If you would like to try BANKFLOWDATA for yourself...
*examples illustrate the concept of Bankflowdata trading, and were not based on historical trades. |
