As a former institutional trader, I have found that using order flow analysis is essential for understanding the mechanics of the market. My Orderflows Combo encompasses a trade setup that includes Point of Control, Value Area, Imbalance, and Price Action.
This approach allows me to identify supply/demand areas in the market, which are vital for determining when price will move away from a balance area. By using this combination of tools, I am able to strategically enter and exit trades with confidence. The power of order flow analysis is undeniable, and I am constantly refining my methods to ensure that I stay ahead of the game in the world of trading.>
This is where the Orderflows Combo really comes into its own. By combining key indicators such as Point of Control, Value Area, Imbalance, and Price Action, traders can identify the most promising opportunities>
The Orderflows Combo is based around 4 major aspect of order flow: Point of Control, Value, Imbalance, Price Action.
Understanding the importance of the point of control is essential. Essentially, the point of control is the price level in a bar where the most volume trades over a given period, and it provides traders with a starting point to discern where value resides. By analyzing order flow around the point of control, traders can begin to identify trends and biases in the market.
The concept of a balanced market is a fundamental principle in trading that is often overlooked. The idea is simple - when there are roughly equal numbers of buyers and sellers, the overall price tends to stay steady. Conversely, when there is too much buying or selling, the market becomes unbalanced, and significant moves can occur.
When fresh supply or demand comes into the market. This is what often catches traders off-guard and can lead to missed opportunities and significant losses for those who are trapped. Those who are particularly susceptible to getting trapped are often the ones who don't understand what is happening in the order flow and sell at a low or buy at a high point. It's important for traders to stay aware of these market trends and the order flow in order to avoid getting trapped and make the most efficient trades possible.
Market imbalances are a crucial factor to consider when forecasting market movements and can be created by a range of factors, from economic or political events, to industry-specific news. When a trader sees imbalance in the market it can result in a significant shift in market direction. In the Orderflows Combo, the algo specifically looks for imbalances that will have an immediate effect on market direction.
While Price Action by itself is not necessarily order flow related, watching how order flow reacts around imbalances, POC and balance results in price action.>