It's time to stop flushing your money down the toilet on trading systems that don't work. Do you really think you can buy a trading system for $99 and turn your computer into a cash machine? Wake up and face reality. Everyone wants to make money trading but most people don't want to take the time to learn how to trade. Losing traders just want a system that is going to tell them to buy here or sell there.
I have been fortunate to work with some of the biggest and best traders in the world and one thing that they all have a solid trading methodology. They don't change their way of trading based on the next shiny trading object object that comes out.
Order flow is the key to understanding what is happening in the market. For many traders order flow is the missing link from trading being a break even venture to a profitable business because it teaches them to read the market and become a trader.
Albert Einstein was not a trader, but if he was alive today, who knows, he might be hired by some algo trading hedge fund. One of his famous quotes was "Everything should be made as simple as possible, but not simpler." As a trader, that is what you need to do, keep things simple. A big problem beginning traders face is they over complicate trading. An order flow chart keeps things simple for the trader. You are not looking at 10 different conflicting indicators. Everything you need to know about the market, the participants, the trend, and much more is contained in the order flow chart. Once you understand how to read it, understanding the market doesn't get any more simple.
>The problem for many losing traders is they rely on price based indicators to predict what the market is going to do. When you look at their screen it is littered with moving averages, MACD, RSI, stochastics, etc. These indicators are all correlated and don’t add any new insight into what is driving the market. They are only looking at price and massaging it into another number.
>In the past, some of the best order flow traders were the pit traders. Why? Because they could see the flow of orders coming into the market from the brokerage houses, being filled and see what came next, was there more buying or selling. Now, the open outcry trading pit are closed and all the trading is done on computers. However, traders have come to realize that most of that information is available to the trader in its raw format.
The Orderflows Trader software takes the raw data of volume traded on the bid and volume traded on the offer and organizes it into an easy to understand chart for quick analysis. By combining price with bid/ask traded volume a trader has the best information possible for short term price movements. By seeing the volume traded on the bid and offers you will see clear clues as to whether the market is strengthening or weakening. With better organized price and volume information you will uncover profitable trading opportunities.
>Prominent POCs allow you to see market generated support and resistance levels by highlighting prominent POCs (Point-Of-Controls) when they appear. Point Of Control is one of the corner stones of order flow and through our research we have identified the POCs that matter.
POCs by themselves often act as short term support and resistance for the next bar. Prominent POCs often act turning points in the market and confirm moves underway.
Zero Prints - New For NT8 Version of Orderflows Trader
Zero Prints are often left as a result of sweeping orders in the market. When a trader sweeps the market, either buying or selling, it is often a sign of very aggressive trading. All the offers are lifted in a buying sweep and all the bids are hit in a selling sweep. This often results in zero prints in the footprint chart. The market is moving very fast and there is no counter trade occurring.
When a Zero Print appears you are alerted with a green arrow below the bar if it is a buying sweep or a red arrow above the bar if it is a selling sweep.
Multiple Imbalances occur when there are three or more imbalances in the same direction in a bar. As order flow traders we are fixated on looking for stacked imbalances in the bar. However, there are instances where there are bunches of imbalances in a bar that are not stacked nicely on top of each other yet they are just as important to the trader.
Orderflows Trader draws a box around the entire bar to highlight when a multiple imbalance occurs so you can easily identify those trading opportunities.
Orderflows Divergence
An Orderflows Divergence Buy appears when the market makes a new or equal high, has a negative delta and the price action of the bar is negative, meaning the bar closed lower than where it opened. Why is that important? The market has been rallying but aggressive sellers have stepped in and become dominant in the market.
An Orderflows Divergence Sell appears when the market makes a new or equal low, has a positive delta and the price action of the bar is positive, meaning the bar closed higher than where it opened. Why is that imporant? The market has been selling off but aggressive buyers have stepped in and active in the market.
Trapped Traders is a term you hear a lot in order flow, but no one really explains it. They just say "There are trapped traders here and point to a chart." The Orderflows Trader software highlights areas where trapped traders appear in the market.
There are times when traders get excited when a market is rallying or selling off and they show up late to the move and either buy the high or sell the low and find themselves trapped in a losing position as they market reverses right after they entered their position. These traders can't take the heat of a losing position and work on getting out of the position at a low. When you can identify trapped traders you give yourself a nice low risk short term trade.
Ratio Bounds Low is another original tool developed by myself and now copied by other order flow software. What a Ratio Bounds Low does is measure the order flow and prints a number above a red candle or below a green candle and depending on what the ratio number is it will indicate to you if there is stopping volume at the current price level.
Ratio Bounds Low signal price support/defense which is evident at swing lows and highs as well as in trends to confirm the direction of a trend. Often when a Ratio Bounds Low appears the market stops in its tracks.
There are players in the market who are so big that their actions can determine if a trend stops or starts. These large institutions know market has moved out of supply and demand balance and act accordingly. The beauty of order flow analysis is that their actions can be seen in the analysis of volume.
>Ratio Bounds High is an original tool developed by me and now copied by other order flow software. What a Ratio Bounds High does is measure the order flow and prints a number above a red candle or below a green candle and depending on what the ratio number is it will indicate to you if there is price rejection at the current price level.
Ratio Bounds High signal price rejection which is evident at swing highs and low as well as in trends to confirm the direction of a trend.
Single Prints is another unique Orderflows Trader tool.
The power of order flow is to be able to see the volume being traded on the bid and the volume being traded on the offer. When single prints appear the market is telling you that the last buyer has bought or the last seller has sold. When you take it in context of the market, single prints often occur at turning points in the market. After all, when there is no more buying in a move up, what will happen next? The market will sell off.
Wouldn't you like to know when the last buyer has bought or the last seller has sold? Only Orderflows Trader highlights to you single prints when they occur.
Delta is one of the most powerful tools in order flow analysis, yet is among the least understood. Order flow delta is the difference between aggressive buyers and aggressive sellers. There are never more buyers than sellers nor more sellers than buyers. Instead what what causes the markets to move up is when there are more aggressive buyers than aggressive sellers. What causes a market to move lower is when there are more aggressive sellers than buyers.
The Orderflows Trader software takes the trades as they occur either on the bid or offer and organizes it so you can determine what the aggressive buyers and aggressive sellers are doing in the market. There are so many profitable ways to use delta.