Full Transcript
https://www.youtube.com/watch?v=E8aZ2f0eACk
[00:11] hello and welcome on the flow or cluster
[00:14] hello and welcome on the flow or cluster chart is one of the most Advanced
[00:16] chart is one of the most Advanced Techniques in technical
[00:18] Techniques in technical analysis it's quite easy to explain what
[00:20] analysis it's quite easy to explain what it can offer the trader thanks to the
[00:23] it can offer the trader thanks to the unique atas future when you open
[00:25] unique atas future when you open Candlestick chart and start zooming in
[00:28] Candlestick chart and start zooming in with a wheel at your Mouse the candles
[00:32] with a wheel at your Mouse the candles suddenly transform to vast amount of
[00:34] suddenly transform to vast amount of numbers and something looking like a
[00:38] numbers and something looking like a leather this zoom in is exactly what o
[00:41] leather this zoom in is exactly what o flow is it's uh look inside a candle as
[00:45] flow is it's uh look inside a candle as if you had a microscope in addition to
[00:48] if you had a microscope in addition to the usual information about where the
[00:51] the usual information about where the Open high low close was you begin to see
[00:55] Open high low close was you begin to see the real action inside how the struggle
[00:58] the real action inside how the struggle between buyers and sellers took place
[01:01] between buyers and sellers took place and what Footprints they left behind.
[01:03] and what Footprints they left behind the beginner may find this technique complicated and confusing at first.
[01:09] that's why I have prepared a model situation that will help you understand the autoflow more easily.
[01:14] you will have a big advantage over others who spent months trying to understand footprint logic.
[01:22] we will talk about the fruit market first of all we need to explain why some numbers are left and right now.
[01:28] the fruit market will come in handy you came to buy 100 kilos of Pierce because you plan to make cider.
[01:38] a kilo sells for €2 anything below that is attractive to buyers so they walk between the Stalls looking for the lowest price.
[01:49] anything above 2 is attractive to the sellers.
[01:54] if you walk up to a stall with beautiful peers selling for exactly the fair price of €2 you can do two
[02:02] fair price of €2 you can do two things you can offer the seller €190 and
[02:06] things you can offer the seller €190 and wait to see if she agrees to it pairs
[02:09] wait to see if she agrees to it pairs were selling for €190 last
[02:12] were selling for €190 last week that was the usual
[02:15] price or you tell her to get you 100
[02:18] kilo of the same variety and you don't
[02:21] care about the price you simply need 100 kilos to make
[02:25] the cider in the first case you will get a
[02:29] cider in the first case you will get a good deal
[02:30] good deal but it may happen that she keeps you
[02:33] but it may happen that she keeps you waiting and you don't buy anything other
[02:36] waiting and you don't buy anything other people started to appear on the market
[02:38] people started to appear on the market for peers they also decided to make the
[02:41] for peers they also decided to make the cider this has caused an excitement and
[02:44] cider this has caused an excitement and steer among the
[02:45] steer among the sellers so they started to increase
[02:48] sellers so they started to increase their prices
[02:49] their prices immediately it's no longer €2 per kilo
[02:52] immediately it's no longer €2 per kilo but €2
[02:54] but €2 35 your offer of90 is therefore
[02:57] 35 your offer of90 is therefore uninteresting and you don't have a
[03:00] uninteresting and you don't have a single pier in the first case you have
[03:03] single pier in the first case you have created what is called a limit buy order
[03:07] created what is called a limit buy order you have placed an offer to buy a
[03:09] you have placed an offer to buy a certain volume at a price below the
[03:11] certain volume at a price below the current price if you were willing to pay
[03:14] current price if you were willing to pay any price you would have gone home with
[03:17] any price you would have gone home with delicious
[03:18] delicious peers and would have been making Cider
[03:21] peers and would have been making Cider at that time you would have managed to
[03:24] at that time you would have managed to buy some peers for €2 some for
[03:27] buy some peers for €2 some for €210 and some for
[03:30] €210 and some for eur20 that wouldn't be bad at all
[03:33] eur20 that wouldn't be bad at all because in the meantime pairs are
[03:35] because in the meantime pairs are already selling at the market for a
[03:37] already selling at the market for a hooping €250 per kilo due to the high
[03:41] hooping €250 per kilo due to the high demand caused by crowds of people
[03:43] demand caused by crowds of people looking for peers demand for cider is
[03:46] looking for peers demand for cider is extremely high today and Supply is not
[03:49] extremely high today and Supply is not sufficient to meet it until track loads
[03:53] sufficient to meet it until track loads of pairs from the biggest suler started
[03:56] of pairs from the biggest suler started arriving late at the market and the
[03:58] arriving late at the market and the price began to fell rapidly there was an
[04:01] price began to fell rapidly there was an over Supply on the market and suddenly
[04:04] over Supply on the market and suddenly there were more than enough.
[04:07] there were more than enough peers what we take away from the market.
[04:10] peers what we take away from the market is neither Pierce nor cider but an.
[04:13] is neither Pierce nor cider but an understanding of the difference between.
[04:14] understanding of the difference between limit and Market orders demand and.
[04:18] limit and Market orders demand and Supply limit order is one that waits for.
[04:22] Supply limit order is one that waits for the price to come back to it it gets.
[04:24] the price to come back to it it gets exactly the price it wants but risks not.
[04:27] exactly the price it wants but risks not being.
[04:28] being filled Market order takes it now and.
[04:32] filled Market order takes it now and doesn't look for a bargain it gets.
[04:34] doesn't look for a bargain it gets filled every time but at the risk of not.
[04:36] filled every time but at the risk of not getting the best price the lad at the.
[04:40] getting the best price the lad at the order flow chart is the same the right.
[04:42] order flow chart is the same the right side reflects the desire to buy remember.
[04:46] side reflects the desire to buy remember right is buy we call the site.
[04:50] right is buy we call the site asks left is sell and we call them bits.
[04:54] a hint bit is what a buyer bits for the.
[04:58] a hint bit is what a buyer bits for the peers ask is what a seller asks for his.
[05:01] peers ask is what a seller asks for his peers if you care to buy them and uh.
[05:06] Peers if you care to buy them and uh just like at the fruit market aggression
[05:09] Just like at the fruit market aggression is what moves the
[05:10] Is what moves the price there must be a large group of
[05:13] Price there must be a large group of people interested in peers who see the
[05:16] People interested in peers who see the number of the buyers and how the price
[05:18] Number of the buyers and how the price is slowly climbing upwards they think by
[05:21] Is slowly climbing upwards they think by telling themselves I will take 100 kilos
[05:25] Telling themselves I will take 100 kilos I'd rather buy at market price at any
[05:28] I'd rather buy at market price at any price than weight and risk going home
[05:31] Price than weight and risk going home empty-handed this aggression drives the
[05:34] Empty-handed this aggression drives the price up buyers who accept high prices
[05:37] Price up buyers who accept high prices who want to possess peers there isn't
[05:40] Who want to possess peers there isn't such a thing then there were more buyers
[05:43] Such a thing then there were more buyers so the price went
[05:45] So the price went higher a stock exchange just like the
[05:48] Higher a stock exchange just like the fruit market is a place where parties
[05:51] Fruit market is a place where parties exchange the
[05:52] Exchange the positions for someone to buy someone
[05:55] Positions for someone to buy someone else must be willing to sell it's
[05:58] Else must be willing to sell it's aggressive buyers who move the price
[06:00] Aggressive buyers who move the price higher and aggressive sellers who move
[06:03] Higher and aggressive sellers who move the price lower aggressive parties Place
[06:07] the price lower aggressive parties Place Market orders they are convinced about
[06:09] Market orders they are convinced about the trend and don't want to miss it they
[06:12] the trend and don't want to miss it they either buy up limits at the ask side to
[06:16] either buy up limits at the ask side to push the price up and join the uptrend
[06:19] push the price up and join the uptrend or they sell out limits at the bid side
[06:22] or they sell out limits at the bid side to push the price down and join the
[06:25] to push the price down and join the downtrend a footprint is a record of
[06:28] downtrend a footprint is a record of what happened what quantities were
[06:30] what happened what quantities were traded at each price
[06:32] traded at each price level these are the trades that were
[06:35] level these are the trades that were made the trades that were
[06:37] made the trades that were executed what you see on the footprint
[06:40] executed what you see on the footprint is what happened and the numbers will
[06:42] is what happened and the numbers will not change we have explained the right
[06:46] not change we have explained the right side on it are the footprints of buyers
[06:50] side on it are the footprints of buyers willing to buy at any price aggressively
[06:54] willing to buy at any price aggressively as long as they have something to press
[06:56] as long as they have something to press the side from since every buyer must
[06:59] the side from since every buyer must must have a seller that means that there
[07:01] must have a seller that means that there must be limit sell orders waiting those
[07:05] must be limit sell orders waiting those are the peers at Stalls the price
[07:08] are the peers at the Stalls the price Stacks at the booths the stall holders
[07:10] Stacks at the booths the stall holders had written the prices at which they
[07:13] had written the prices at which they were going to sell the peers to the
[07:15] were going to sell the peers to the aggressive buyers the left side is ether
[07:19] aggressive buyers the left side is ether our waiting guy who came with an offer
[07:22] our waiting guy who came with an offer to buy
[07:23] to buy at190 placed the limit by order and
[07:26] at190 placed the limit by order and waited until the afternoon hello I will
[07:29] waited until the afternoon hello I will buy 100 kilos of Pier but I will give
[07:32] buy 100 kilos of Pier but I will give €190 I'm okay if I have to wait as soon
[07:36] €190 I'm okay if I have to wait as soon as the orust arrived with his trucks the
[07:39] as the orust arrived with his trucks the stall holders started to get rid of the
[07:42] stall holders started to get rid of the goods as quickly as possible because it
[07:45] goods as quickly as possible because it was evident to them that the price would
[07:47] was evident to them that the price would go down so they ran up to our waiting
[07:51] go down so they ran up to our waiting man and gladly sold him the pier for
[07:54] man and gladly sold him the pier for €190 our waiter had a limit buy order
[07:58] €190 our waiter had a limit buy order the store St holders were panicky and
[08:01] the store St holders were panicky and aggressive in getting rid of the peers
[08:03] aggressive in getting rid of the peers willing to sell for anything so that
[08:06] willing to sell for anything so that they in turn would not have to return
[08:09] they in turn would not have to return home with unsold fruits the stall.
[08:11] home with unsold fruits the stall holders were selling at Market cell to.
[08:14] holders were selling at Market cell to those who were waiting for the price to.
[08:16] those who were waiting for the price to drop down to anyone who was willing to.
[08:18] drop down to anyone who was willing to buy for a price and now you understand.
[08:21] buy for a price and now you understand the mechanism behind the footprint all.
[08:24] the mechanism behind the footprint all these numbers are records of the trades.
[08:27] these numbers are records of the trades aggressive buyers on the right side.
[08:29] aggressive buyers on the right side aggressive sellers on the left side.
[08:32] aggressive sellers on the left side however You' better always have on mind.
[08:34] however You' better always have on mind that there must be two parties to close.
[08:37] that there must be two parties to close a deal if unusually high numbers.
[08:40] a deal if unusually high numbers suddenly start appearing on the right.
[08:42] suddenly start appearing on the right side of the footprint which represents.
[08:45] side of the footprint which represents purchases at the highest prices of the.
[08:47] purchases at the highest prices of the day it means that the planter trucks.
[08:51] day it means that the planter trucks have arrived these are limit sales the.
[08:54] have arrived these are limit sales the wholesale grower saw that the price had.
[08:56] wholesale grower saw that the price had gotten up to 250 because of the high.
[08:59] gotten up to 250 because of the high demand so without setting up a stand he.
[09:03] demand so without setting up a stand he started selling straight from the truck.
[09:06] started selling straight from the truck huge crowds of buyers flocked to him who.
[09:09] huge crowds of buyers flocked to him who just watched the price go up but still
[09:12] just watched the price go up but still had no peers so they started buying in
[09:14] had no peers so they started buying in bulk 100 kilos 50 kilos 200 kilos that
[09:19] bulk 100 kilos 50 kilos 200 kilos that went fast this began to satisfy the
[09:22] went fast this began to satisfy the demand the buyers began to calm down
[09:26] demand the buyers began to calm down nobody came to the orchard as to say hey
[09:29] nobody came to the orchard as to say hey I will give you €260 but just sell me
[09:32] I will give you €260 but just sell me some peirs all of the sudden there was
[09:36] some peirs all of the sudden there was enough Supply on the contrary the Orest
[09:39] enough Supply on the contrary the Orest saw that the buyers started
[09:41] saw that the buyers started hesitating so he lowered the price to
[09:44] hesitating so he lowered the price to €240 and again he sold a large quantity
[09:47] of cargo and then he lowered the price
[09:49] of cargo and then he lowered the price again to €230 on the sales records the
[09:54] again to €230 on the sales records the highest numbers would be at the 250 240
[09:59] highest numbers would be at the 250 240 and maybe 230 levels but they will be on
[10:03] and maybe 230 levels but they will be on the right hand side because the Picker
[10:05] the right hand side because the Picker and his trucks were calmly rewriting the
[10:08] and his trucks were calmly rewriting the price on the sign it was aggressive
[10:11] price on the sign it was aggressive buyers who accepted his price which is
[10:13] buyers who accepted his price which is why we find the highest numbers of the
[10:16] why we find the highest numbers of the day on the right side of the footprint
[10:18] day on the right side of the footprint not the left therefore the footprint
[10:21] not the left therefore the footprint must be seen in a certain context
[10:25] must be seen in a certain context certainly if the market is in full swing
[10:29] certainly if the market is in full swing we don't know if the crazy people from
[10:31] we don't know if the crazy people from the next Village have arrived and
[10:33] the next Village have arrived and suddenly jumped in at the very peak of
[10:36] suddenly jumped in at the very peak of the prices to buy peers because there
[10:39] the prices to buy peers because there were no left in the market in their
[10:41] were no left in the market in their Village they would have been behind the
[10:44] Village they would have been behind the high numbers on the
[10:46] high numbers on the right but if the market has closed there
[10:49] right but if the market has closed there are high numbers on the right side of
[10:51] are high numbers on the right side of the record book and the last Pier sold
[10:54] the record book and the last Pier sold today for
[10:56] today for €180 that doesn't mean growth that means
[11:00] €180 that doesn't mean growth that means demand is being satiated or saturated
[11:03] demand is being satiated or saturated although we see high numbers on the
[11:05] although we see high numbers on the right we can expect that tomorrow the
[11:08] right we can expect that tomorrow the suler will come again and will in turn
[11:11] Suler will come again and will in turn try to sell what is left on his trucks.
[11:14] Try to sell what is left on his trucks.
[11:16] The buyers will already pressing Cider.
[11:19] At home even our cautious buyer who waited all day yesterday with a sign.
[11:22] Waited all day yesterday with a sign above his head saying I buy 100 kilos of.
[11:25] Pier I'm offering €190.
[11:28] The price is not going to go up.
[11:30] Today it will probably go down.
[11:34] And that is the greatest charm of the footprints.
[11:37] But also it's danger.
[11:40] You have to be able to decode whether the high numbers on the right are aggressive buyers or a truck with a huge quantity.
[11:43] Of peers that has just arrived.
[11:45] So let's W up right side is asks aggressive buyers or passive waiting.
[11:48] Sellers left side is bits aggressive sellers or passive waiting buyers.
[11:52] That's why we read the price diagonally.
[11:55] The left side represents the desire to push the price down while the right side.
[11:58] Shows the aggression when the intention.
[12:13] shows the aggression when the intention is to move the price up at atas we
[12:16] is to move the price up at atas we strive to ensure that our videos are not
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