Need help with basics

[Shalva Kutelia]

Hi, I have to admit I become confused by what I see in MK, I’ve put the areas of interest into colored boxes and would like to get a solid understanding:

Yellow: short position stops
Blue: where long positions entered
Violet: long position stops
Green: where short positions entered

Is this correct?

What is the reason to stops being colored differently in different charts? Particularly in this case what do white and grey colors mean?

Using the opportunity can you please help me understand how OST, OGZ and STS get calculated too, I am trying to understand their weight in relation to one another.

Thanks

[Admin SME]

Blue box: DM long positions currently open
Green box: DM short positions currently open

Yellow box: STS of DM shorties
Violet box: STS of DM longies

Note:
The white and grey lines are also STS, but from different data sources. As you can see, for some pairs, this helps.

OST are option strike signals, they have nothing to do with that.
OGZ are order gap zones, where the SM fills DM orders.
STS are the short-term stops.

LTS are the long-term stops, pink lines.
MTS are the (important) medium-term stops, in green.

All the best dear!

SME FX

[Admin SME]

Note 1:
The OST are tradable when no squeeze line is in the way.

Note 2:
The MTS are tradable when no squeeze line / DM flow is in the way.

Note 3: OGZ and STS have less weight than both of the above. These are often used for pullbacks etc.

[Admin SME]

Note 4:

A squeeze always dominates, in particular the higher the time frame where the squeeze occurs.
So a squeeze on the day chart will always dominate everything else, even H1 MTS or OST.

[Shalva Kutelia]

Ok that is great, thank you.

I will leave this here just in case anyone like me is more visual

[Shalva Kutelia]

..another thing I would like to clarify: when the net DM line is way above it’s counterpart but not sloping in any direction, does that mean the bias is low and OGZ and STS are now tradeable? How does this case compare to when both red and green squeeze lines are close by?

[Admin SME]

Yes,

as you can see from the EURAUD example, we first had to wait until the squeeze line slopes down.

“How does this case compare to when both red and green squeeze lines are close by?”

If both squeeze line are close too each other, yes, this is a minus point, because DM longies and shorties are roughly equal.

Yes, the slope of the respective squeeze line is essential.

[Admin SME]

Look, Djamal made a video today about EURAUD:

[Admin SME]

[Shalva Kutelia]

Yes, I watch all these videos, thank you

[BullFXtrade1]

Hi, in this video example were you show a trade opportunity for the OST on the 13 of nov 2023. I run the simulation with real spread and concluded that I would need a SL of 100 pips to have a winning trade reaching the OST on the 15 nov 2023. This off the news on the 15 nov 2023 withe expanding spread. I do not see how this could be good example of trading with the MK. If you put a trade before news you get stopped out and after news, were I would have put the trade, you have expanding squeeze line of shorties making it not so attractive to trade anyhow.The reason I talk about this now is that we have the same thing developing now.

[Admin SME]

Hello BullFX,

where did you see that?
Do you have a link?

Thank you,
SME FX

[Author]

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