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Beginner to Order Flow

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Los Angeles, CA
Trading Experience: Advanced
Platform: SC
Favorite Futures: TSY, Energy, Equity
Posts: 213 since May 2015
Thanks: 747 given, 380 received

You have been to a bunch of great sites already. Honestly, a lot of what they are talking about is spot on and you don't really start to appreciate it until you spend the time doing the grunt work.

If you're willing to do the work, this is a great syllabus to follow:

Also, highly recommend FuturesTrader71's webinars as he hits on order flow a little differently.

The quickest way to learn... screen time, moree screen time, and more screen time. However, method hunting is a real thing and try to keep your tools consistent. It's important to understand the concepts and the context for the order flow terms. The core of order flow is understanding what the market participants are doing and aligning yourself where you have a good sense of who's in control of trade and who's going to have to puke their positions.

For example, identifying an iceberg is one thing, but then you still have to determine if that even triggers a trade event for you (hello context). If there is an iceberg at a level, all that means is there is/are trader(s) stacking the offer/bid as passive orders. That also means aggressive orders are hitting into the bid/offer. Now, you're on to something because we know we have a location where either late entries get caught or the icebergs get ran over. This creates potential trade events. Now if the icebergs become aggressive and start to cross the trade (passive seller on the offer starts to sell on the bid, or passive buyer on the bid starts buying on the offer), we could see follow through.

When learning the order flow terms and techniques, really focus on the concepts because it is all based on market participants and probable reactionary points. One of the biggest misconceptions about order flow is that you are trading all the time.

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