This past weekend I scoured my notes from @TheFlowHorse streams to consolidate helpful insights.
Frameworks & Nuanced Discussion on Trending Markets, Screening Alts, Flow etc.
An all-encompassing thread 🧵
I have learned a ton from Horse in terms of frameworks and the importance of adaptability which I've incorporated in how I trade & regularly took detailed notes on his streams that I posted on Twitter from Sep. 23' through April 24'.
Oct 31 2023- Thought process on Break of Long Term Ranges + Looking at First Balance day after a Big Move + Keeping an eye on Coin-Margined Contracts
to observe the story being told by the market as it develops vertically and horizontally."
an excerpt from Mind Over Markets - Dalton- describing high volume regions.
Use Case of HVNs & LVNs (volume)
.....provide useful reference points that enable traders to visualize potential future activity.
The importance of such reference points lies in the detection of market change.
By monitoring activity around high- and low-volume areas, a trader can determine whether or not directional conviction has changed since the area was formed.
Through the detection of fundamental change, traders can better manage their risk and identify areas offering favorable trade location.
- J. Dalton (Mind Over Markets)
why do HVNs matter?
the market rotates between compression and expansion (and vice versa) - spending most of the time in compression.
contextually speaking, high volume nodes are areas that represent consolidation and/or balance (per auction market theory).
HVNs are regions of "fair" prices i.e. participants have allowed price action to develop in these regions to indicate that for a certain period of time these prices were agreed upon by both buyers and sellers as being "fair" in nature.