Time Period Candlesticks > 4 Hours I prefer time period candlestick charts; they better reflect volatility and provide better stop-loss levels. Asia → 00-06 London → 06-12 New York → 12-20 Close → 20-00 Each time period has its own candlestick chart.

Slow Grind vs Fast Spike

If you want to use order flow in your trading, you must create a system around it. You should write down a framework: - What you want to see - Where you want to see it You can start anywhere you want based on this framework, but your first trade will likely not produce the results you want. This is where review and adjustment come into play. For example: - I want to see open interest reach 2% (a surge) - A breakout above the previous day's high - A 15-month close below the level All of these variables can be fine-tuned and adjusted based on your review: - 2% (value) - Open interest (indicator) - Previous day's high (level) - 15-month (timeframe) - A close below the level (trigger) When starting out, minimize risk and use these trades to fine-tune your strategy. Most people fail because they lack the ability to take the time to review and feel their time is better spent staring at a trading screen without a real system.

I've found that most "breakouts" in $BTC occur when open interest decreases, forcing positions out of the market rather than new positions being opened. Surges in open interest (new positions being opened) tend to occur during price peaks/troughs, when moves become overextended.

An example of bearish absorption. Increased buying failed to push prices to new highs, indicating that limit sell orders were suppressing prices. Subsequently, trapped long positions were liquidated, triggering a more aggressive reversal. Details ↓

Retweet @Luckshuryy: Fair Value Gap (Imbalance) One post 🧵

Fair Value Gap (Imbalance) One post 🧵

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Summary Table

Internal liquidity (simplified)