What are "They" Doing

The focus of my trading is always to try and discover what "they" are doing. If I can figure that out, the rest is easy.

But who are "they"?

For me, "they" is what is left over when you take the differences between the buyers and the sellers. The nett nett of trading activity is the "they". It's the "they" that move the market. And "they" are quite clever in hiding what they are doing.

My first weapon in attempting to capture the "they" is my range bars. The range bars get rid of the noise and reveal more of the order flow. It reveals acceptance and rejection of price. If you have some of MarketDelta's inside the bar stuff then you get a more macro peak at this activity.

Next, I use the volume breakdown to discover if the trading is panic trading so I can see if I can fade it at the appropriate support or resistance level.

Of course I then have my beloved 33EMA, the one indicator I can't live without. The centre of the universe, the barometer of value.

Then of course Market Profile. MP shows value developing and moving. Acceptance and rejection of value. Selling above value and buying below value, or not. I can't imagine anyone being successful without MP.

Putting it all together, I see the whites of the eyes of the "they". Once I can see "they" I can join them. I trade with the "they" as its what "they" are doing that matters.