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Orderflow Trading


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Morning,

I am so sorry but i dont agree. If you are in a balanced area trading the POC is very dangerous even if you are in tranding due to a distribution area and the price can go up and down anyway. The order flow can confirm the trend but not the entry.

 

That's right! Never trade on the POC of a balanced zone. But when you buy or sell on previous POC, you are usually on a extreme of distribution of the current microbalanced zone. Hope now it's more clear

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But when you buy or sell on previous POC, you are usually on a extreme of distribution of the current microbalanced zone

Totally right. BUT......previous POC(I mean POC of the day before) i trat it as a level Important level ina current daily situation end composite of legs on screen. All confirmed by the OF about trap order LOCKED.

I hope it helps

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  • 1 month later...

Hi DTP,

 

Long time no further posts!

 

I have enjoyed going through your thread and am learning a lot.

 

Anyway, I just wanted to know how I can make my charts look like yours. Is there a template you can share?

 

Thanks.

 

Hi @marcelao23

 

I feel more confortable sharing knowledge than indicators. What we are discussing here can be see it with any type of volumeladder chart

 

Cheers

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  • 3 months later...

Templates

 

Hi DTP,

 

Long time no further posts!

 

I have enjoyed going through your thread and am learning a lot.

 

Anyway, I just wanted to know how I can make my charts look like yours. Is there a template you can share?

 

Thanks.

 

Hello,

The trouble with sharing templates is... If you dont have the same indicators your charts will not look like the individual's charts who created them. Charts are very easy to build in NT Perhaps if you need help with that it might be a good topic for another thread. I am always game to help anyone that needs it in NT.

 

I too Enjoy DTP's posts but why not carry the torch and try this for our selves. We have all of what DTP does and how he trades so lets give it a try.

 

Post some thoughts and lets see what happens.

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  • 4 weeks later...

Greetings all,

 

I read through this thread as I was interested in learning about order flow and it's usefulness.

I am looking over the shoulder of a friend who is using buyside global. It seems like it has some value, but not 100% sold on it as I don't have enough experience with it. If someone else has thoughts one how best to use BSG, I'm all ears.

 

Today we put BSG beside a chart of the gomi ladder to see if just looking at the ladder and delta could identify an entry.

Picture below (gomi far left, 15m middle, BSG right)

 

I was looking for a short entry based on the 15 pullback, 50% retrace from that big move down.

#1 the gomi had a large negative delta after hitting the 50% retrace...good

#2 the BSG had a negative delta -790 on a green bar as it went to the 50% retrace area. Typically when the BSG bars are green the delta is + and when red they are - ...so I thought this was a good tell as well.

Entry was 2356.50 and target was 2355.00 (the blue lines on the BSG chart)

Target was hit (it actually went down 10pts, jeepers) Clearly I didn't hold long enough, but what I'm trying to do is find an edge with the order flow and find entries using it.

This was a simple attempt at it, and am not sure what was more important..the 50% retrace, the delta numbers...a combo of both.

 

Anyway, I will post a trade or two tomorrow as well and see if we can't flush out some decent ways to use delta and order flow to get us some winning trades. Hopefully others will do the same.

 

First post, does that mean I'm not allowed me to post a pic? Hopefully the link I posted works. Sorry if it doesn't, please let me know how I can post a pic, thanks!

 

http://imgur.com/a/plj6g

Edited by dotrading
Can't get the pic to show up?
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Hi dotrading,

 

Reading order flow and take profit from it, is most an art that a science. You will need to learn how to read the context and then evaluate how both participants are reacting at specific areas. A 50% retracement is only a level that don't say too much about context. BTW, good first step and welcome to your long trip in learning this way to trade.

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Thanks DTP for the reply and for this thread.

It was my first real stab at it yesterday and will be watching for entries today. Not sure if I'm using the correct tools gomi/bsg. Guess that will sort itself out.

Good trading to you today!

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Hi, I know that I was out for a few months, but really busy... I trade every day and posting in a forum is a consuming task that with a busy life can be a little hard. I want to explain a trade I took today, one in ES and another on 6E. I will explain about the trade at ES.

 

Context, The market was trading down. We test previous Vpoc and reject this zone. Then start going down, and in this movement, we test the previous VAL and a buy zone. Looking at the volume ladder you will see that at this point buyers were really aggressive, buying and absorbing sitting sellers. This kind of thinks are what makes sense to look. If you are a retail trader, need to spend your effort to find a big fish who will protect you and your trade,not because you will be important. His position will take care of you :D

 

2017-04-04_2013.png

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Hi dotrading,

 

Reading order flow and take profit from it, is most an art that a science. You will need to learn how to read the context and then evaluate how both participants are reacting at specific areas. A 50% retracement is only a level that don't say too much about context. BTW, good first step and welcome to your long trip in learning this way to trade.

 

Thanks DTP. The challenge is as you said, to read the context. At that very point in time near the VAL, it is not always clear that the next moment, aggressive selling is not going to step in and take it lower.

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Not been having the best of luck just using the delta on it's own to get an entry.

But it seems to be useful to help confirm some basic TA like in this example of a trend line break. Very early on in my learning curve here but this trade worked out nice.

I took 2.5 pts..

 

The delta as price approached the trend line was -5800, I thought that should be enough selling pressure to drive it through the trendline. Which it did.

 

I'll be looking for more trendline breaks, double tops etc and then see if the delta confirms these patterns.

 

http://imgur.com/bY9Inhb

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  • 2 months later...

great trade

 

Hi, I know that I was out for a few months, but really busy... I trade every day and posting in a forum is a consuming task that with a busy life can be a little hard. I want to explain a trade I took today, one in ES and another on 6E. I will explain about the trade at ES.

 

Context, The market was trading down. We test previous Vpoc and reject this zone. Then start going down, and in this movement, we test the previous VAL and a buy zone. Looking at the volume ladder you will see that at this point buyers were really aggressive, buying and absorbing sitting sellers. This kind of thinks are what makes sense to look. If you are a retail trader, need to spend your effort to find a big fish who will protect you and your trade,not because you will be important. His position will take care of you :D

 

2017-04-04_2013.png

 

great trade....

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thanks

 

All expained above, it's pure theory. But we live in a real world where theory can be a little tricky. Let's look at this image:

 

http://content.screencast.com/users/daytraderprofesional/folders/Jing/media/3b6cd2a1-7426-4eb4-b8b4-dda418043674/2016-08-01_1122.png

 

It's clear that the market is working on this area, but has zones where the volume is thinner. For define a better balanced zone the market need to spend more time working on it. Knowing this potential action, we can be focused where is the best place to be, the lows or highs and see what happens at those extrems.

 

thanks for the advice..

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Hi, I know that I was out for a few months, but really busy... I trade every day and posting in a forum is a consuming task that with a busy life can be a little hard. I want to explain a trade I took today, one in ES and another on 6E. I will explain about the trade at ES.

 

Context, The market was trading down. We test previous Vpoc and reject this zone. Then start going down, and in this movement, we test the previous VAL and a buy zone. Looking at the volume ladder you will see that at this point buyers were really aggressive, buying and absorbing sitting sellers. This kind of thinks are what makes sense to look. If you are a retail trader, need to spend your effort to find a big fish who will protect you and your trade,not because you will be important. His position will take care of you :D

 

2017-04-04_2013.png

 

perfect trade aswome how you detect you start open position ?

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