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Charting VS orderflow

  #17 (permalink)

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captaindavidb View Post
For a long time I was always trading with just the price action, but have lost a lot of money doing that over the years. Something always seemed to be missing as the movement of the market was always so unpredictable. That's where order flow comes in. It allows you not only to see the quantum of the orders, but also the speed at which they're being placed.

In the example that you give with the volume profile, how quickly were orders being placed at the extremes of the value area? Was there a lot or little volume? Answering those will give you the key clues as to whether or not you should trade them, and in which direction.


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I see where you are coming from, Ive actually got to a stage where I mostly ignore the orders in the buy/sell column. The speed of change in this column makes my head spin.

Watching order count actually committed gives a much better idea of where the battlegrounds are and where pain areas are for those that are playing in the short term.
I traded gold this morning and saved a screenshot of the DOM as I saw absorption at a particular level. It was a successful trade based on absorption and the following is a post analysis explanation but Im trying to explain what I was seeing at the time:

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Last edited by Grantx; June 14th, 2017 at 06:51 AM. Reason: Spelling
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