Month: November 2019

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How to use the money flow predictor

HOW TO...

Trades
besomebodyfx terminal
HOW TO USE THE capital FLOWs TOOL

These charts are created by collecting historical movements and money flows of speculative and commercial positions.

What does it tell us?

Generally, if you are a swing trader, you can use these charts to open positions at peaks or bottoms, and to get confirmations of long term trends for your positions.

The cash flow tool can be used only for TIMING and DIRECTION, this tool is useful to know when a market tends to peak, when it tends to bottom, and when it tends to trend and in which direction, so you can’t ever rely only on this tool, you want to use it to have a further confirmation or to time your positions correctly, let me show you an example.

Let’s say on March 5 you watch the crude oil chart and you see something telling you to go long, might be technically or fundamentally or both, the capital flow tool here would save you some drawdown and would allow you to catch a better entry because it’s telling you that usually on the 5th of March, crude oil speculators and commercials tend to push price lower…

So you skip the entry and you want for a better entry the 15th of March where the cash flow toolr is telling you that speculators and commercials tend to buy Crude oil pushing price higher.

Here you can see the perfect example of how this tool would have saved you some drawdown suggesting you to wait for the 15th of March to buy Crude Oil

On August 5 you can soo how the cash flow tool announced the beginning of the GOLD uptrend that pushed GOLD from 1455 to 1555, and this tool predicted exactly the end of the move on September 5, BUT always remember that this tool is a further confirmation to your fundamental or technical bias and that it can help you to time your entries and exits, helping you catch tops, bottoms and avoid drawdowns.

So practically what this tool does?

This tool predicts, based on historical data, the flow of capitals into a specific asset, so the flows of money coming into and out of the asset, there are a plenty of of factors that can affect both trade and capital flows for a particular country, currency and asset, this tool predicts future flows based on decades of historical flows but conditions might change and external aspects can influence the flows of capital during a specific period, this is why this tool must be used as an extra confirmation to time the entries and exits and not as main decider factor for your trades.

For more active intraday traders, this tool will be less useful, but every once in a while it will allow you to catch the perfect top or bottom of the day and ride big trends, turning your short term trade into a long term swing position.

Plus it’s anyway always nice to know in what type of cycle the market is, are capitals flowing out or into the asset in this specific time of the year? are we reaching a peak or a bottom? etc…

Let’s see another real life example, you want to short NZDUSD for instance, it’s April 26th, you check the capital flows tool and you see that between April 26 and May 1 money tends to flow into the NZD pushing price higher, so you realize that it’s not safe to enter now but the best timing would be on may 1st…

Here is the outcome, and at the same time the tool is suggesting you to take profit on May 24 because a bottom could form, so you take your profits there and stop looking for longs until new conditions are met.

This is it...

This is what this tool is for, it’s a great extra confirmation and great to time perfectly entries and exits, we use it often for our trades in the network and by being part of it you are able to always be updated on the best opportunities available in the market.

Posted on

How to use the institutional activity data

HOW TO...

Trades
besomebodyfx terminal
HOW TO USE THE INSTITUTIONAL ACTIVITY SCORE

This data is extremely helpful for you to get a view on what the institutions are doing in the markets, being able to see week after week their activity will give you a great edge every week.

But how can you make use of it?

Well, first of all, you can of course follow the trades shared, easy to do, very relaxing approach and you can set and forget the pending orders, the trades on the institutional activity section are based mostly on that plus of course some technical and some fundies.

But at the same time you have the freedom to use the data for your own intraweek trading, the concept here is simple, if institutions are adding for instance longs on the EUR then for that week you want to look ONLY for EUR longs, and having the smart money on your side will allow you to ride the big moves and not get trapped in the wrong direction.

But let’s see some real life examples.

EUR DATA SENT SUNDAY 10/27/2019

This is just the first example, you can clearly see how by having access to this type of data you can get a clear bias for the week ahead and be always in the right direction.

AUD DATA SENT ON SUNDAY 10/13/2019

I can go ahead with these examples for pages and pages, with these type of data you have the power of having a clear directional bias for the entire week, it’s useful for intraday trades, for swing traders, for everybody, knowking where the money are moving and in which direction is what will make you profitable over the long run.

CAD AND JPY DATA SENT SUNDAY 10/20/2019

With some common sense and some basic technical analysis, you are able to catch the best entries, the best way of doing this would be to pair a currency where institutions are moving in a specific direction against a currency where they are moving in the opposite direction, for instance in the example above you can see we sent the institutional data Sunday 10/20/2019, and there was a clear bias to long the CAD against the JPY, institutions were adding longs in the CAD while adding shorts and closing longs in the JPY, volume during the week wasn’t much but still a solid gain with a good technical entry.

We can go on and on...

I can keep sharing examples, but i think we have proved a point here, the most info you have the better odds of taking a good trade you have, knowing where institutions are moving money, having a fundamental factor backing up the direction (you can have this by reading our daily briefings in the network channel) can be your holy grail if you use it wisely.

But so what does -10/+10 etc

You will see how the institutional activity is illustrated in “scores”, between -10 and +10.

What does the score represent?

The score represents the average amount of money moved by institutions in the given currency, for example a -10 in longs means that institutions have closed a relatively big amount of positions relative to their average activity, so for instance a +3 in longs in the CAD will be a relatively average low size and thus not much impactful.

OUR TRADES...

On the same page every week you will see our trades, these are literally the easiest signals to follow, you have no excuses here, the trades are sent usually as pending order on a Sunday before the market open, you have all the time in the world to set and forget the order on a Monday, literally follow the instructions and forget about the trade until the next update on the next Sunday.

Down below you can see an example of a recent trade in AUDUSD.

Pending order set at the market open and the update is then sent the next Sunday…

The next Sunday here is the update, the order has been filled and it’s now running, the next update will be the next Sunday and so on, no action is taken during the week, this is a great way of trading for traders that don’t have time to follow the markets during the week or that want to have some freedom while trading, and this is why we use both approaches, this long term relaxing approach and a more intraweek approach in the telegram channel, you can easily follow both by being a private network member.

The good aspect of this is let’s say you got bored of trading every day and you want to go on holiday or you want to take a break, easy peasy, switch to a longer term trading style, it takes literally 1 hour on a Sunday to study the institutional activity and find trades or to follow our long term trades, 1 hour on a Sunday to be free the entire week.