IRON TRADING FX
OUR TRADING SYSTEMS
Just like every trader, most of the members of the Iron Trading Team have passed through the stage in which one believes that indicators predict the market. After tossing out that belief, each of us specialized in a concrete analysis field, all of them with empirical background, and trained for many years until mastering it.
But, as you may imagine, no single method can provide a consistent performance, the same way that a combination of methods without the adequate knowledge and training can only lead to failure.
This is one of the main factors that originated the foundation of Iron Trading Fx. Our system is a combination of several empirical trading methods, each of them supported by one or two specialists in their fields in addition to an overall understanding of the markets provided by years of practice, training and exploration.
What makes us so special?
Volume Profile is an advanced charting study that displays trading activity over a specified time period at specified price levels. The study (accounting for user defined parameters such as number of rows and time period) plots a histogram on the chart meant to reveal dominant and/or significant price levels based on volume. Essentially, Volume Profile takes the total volume traded at a specific price level during the specified time period and divides the total volume into either buy volume or sell volume and then makes that information easily visible to the trader.
High Volume Nodes (HVN) are peaks in volume at or around a price level. HVN can be seen as an indicator of a period of consolidation. Usually there is a great deal of activity on both the buy and sell side and the market stays at that price level for a great deal of time compared to other levels in the profile. This can imply a “fair value area” for the asset. When price approaches a previous HVN (or fair value area) a sustained period of sideways movement is expected. The market is less likely immediately break through that price.
Low Volume Nodes (LVN) are the opposite. They are valleys (or significant drops) in volume at or around a price level. Low Volume Nodes are usually a result of a breakout rally or a breakdown. During a rally or a breakdown, there will typically be an initial burst of volume and then a significant drop off. The drop off can imply an “unfair value area” for the asset. When price approaches a previous LVN (or unfair value area), the market is much more likely to rally through or bounce off of that price level. Because it is seen as an unfair value area, the market will not spend as much time there compared to some other levels in the profile.
These types of patterns were originally discovered by Brian and Bill Wolfe who, after analyzing a considerable amount of data, realized major price changes frequently occur after four minor waves.
The wolf wave is a naturally occurring trading pattern that can develop across all financial instruments. This chart pattern is made of five alternating waves. Supposedly, it highlights the supply and demand imbalances in the market and possible equilibrium price points.
The wolf waves can appear on all time frames from the 5-minute intraday chart up to the weekly chart. Unlike other chart patterns, the wolf waves are used to forecast where the price is going. And also how much time it will take to get there. Here is another strategy called weekly trading strategy that will keep you sane.
In essence, the wolf wave trading strategy is a great market timing tool. As is the case with many types of “wave strategies,” Wolfe Wave traders are looking for specific patterns where a security is likely to experience a sudden change in value.
After the first four “waves” have formulated, traders will expect a new “breakout” to occur. By drawing a line between the first and fourth points, Wolfe wave traders create a profit target line. This is done by projecting the line to the breakout point expected to occur after wave 5. The goal of this exercise is to find the estimated price at arrival (future value) and the estimated time of arrival (when this future value will occur).
Order Flow is a set of tools to visualize the trading volumes for both buying and selling of a market in real time. These volumes provide a trader with information on how many buy-side and sell-side contracts that have been crossed at each trading price level. It also gives us very important information about the difference between the volume bought and the volume sold at a certain price level and the time elapsed from one price level to another or called tick to tick [the minimum unit of price movement].
All this information allows a trader to easily identify the most negotiated and disputed price levels between buyers and sellers. Those price levels usually represent support and resistance levels. Therefore, the Order Flow allows us to anticipate the identification of those levels of support or resistance before they occur, which otherwise according to traditional technical analysis, we would have to wait for the graph to confirm said resistance in the next retest.
As it always had been, order flow is the mechanism that moves prices up and down. It is the balance or imbalance of buyers and sellers (bids and asks). It’s the onslaught of market sell orders that overwhelm the buy limit orders, or the market buys that overpower the limit order sellers.
Getting an edge in order flow is a tricky matter as you are always reading past information. In terms of order book data, you can only see the limit orders–in other words, you cannot see the market orders that jump in until the moment that they do. Nevertheless, there is “footprint” software that exists to interpret the imbalance of orders and trades to help you better speculate whether a price move indicates short-term bullishness or bearishness.
Institutional trading is based on the interpretation of the footprints left by the IPDA interbank algorithm, which executes orders in the market to efficiently deliver liquidity at the price, completely manipulating the market and inducing retail traders or investment funds to lose. your capital to obtain a counterpart where to place your positions and obtain benefits.
The Interbank Algorithm or IPDA is a secret. A software developed by physicists, mathematicians, programmers and psychologists designed to cause losses to retail traders and thus obtain profits.
But there are certain "traces" that this interbank algorithm and the Market Maker cannot hide, and thanks to this method we are able to interpret and identify these "traces" of the algorithm, and play in our favor to obtain great benefits with the least possible risk.
So, in a nutshell: Institutional traders move the market and manipulate the retail traders to support their movements. Since any of us have the resources to fight them, the best we can do is to find out what is their next move and benefit from it.
The price action is a method of billable negotiation in the analysis of the basic movements of the price, to generate signals of entry and exit in trades and that stands out for its reliability and for not requiring the use of indicators. It is a form of technical analysis, since it ignores the fundamental factors of a security and looks primarily at the security's price history. What differentiates it from most forms of technical analysis is that its main focus is the relation of a security's current price to its past prices as opposed to values derived from that price history. This past history includes swing highs and swing lows, trend lines, and support and resistance levels.
At its most simplistic, it attempts to describe the human thought processes invoked by experienced, non-disciplinary traders as they observe and trade their markets. Price action is simply how prices change - the action of price. It is readily observed in markets where liquidity and price volatility are highest, but anything that is bought or sold freely in a market will per se demonstrate price action.
A price action trader observes the relative size, shape, position, growth (when watching the current real-time price) and volume (optionally) of the bars on an OHLC bar or candlestick chart, starting as simple as a single bar, most often combined with chart formations found in broader technical analysis such as moving averages, trend lines or trading ranges.
Is the market random?
Of course it isn't. It may seem random if you don't understand how it works and you make your decisions taking pop indicators such as RSI, Bollinger or MACD as a reference. Bad news: These indicators are completely useless and were designed by institutional traders to control the movements of retail traders.
The market is not bullish or bearish because RSI is up or down. The price moves due to the confluence or opposition of institutional plans. The good news is that they leave traces, and we know how to follow them. We don't create waves, we jump onto them and enjoy the ride.
I took the the educational programme and also the account management service. I like the system a lot and the indicators work very well when you learn how to combine them. Really good stuff. I funded an account with 300$ and let them manage it, now it has 754$ with two positive trades running, so happy with their job.
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Telegram: @lucas_iron or @oliv_iron