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Any Good Books on Order Flow

  #4 (permalink)

North Carolina
 
Trading Experience: Beginner
Platform: NinjaTrader, Tradestation
Favorite Futures: es
 
Posts: 644 since Nov 2011

Regarding profile and order flow

* Market profile is not a trading technique but a market visualization technique.
* I hypothesize that profile became popular with floor traders because they already had the market cognition behind profile because they were tape readers and didn't have charts. As a tape reader, you must keep track of price in your head. The way you do that is to repeat it. So, the volume information can be inferred from the change in price over time. So, market profile was a visualization of what floor traders had to do in their heads anyway. However, if you don't have the market cognition piece in your head then profile won't make much sense because it is learning it backwards.
* It is not possible to learn tape reading or order flow from books. I am sure you can learn something but it is unlikely to take you more then 25%-50% of the way.
* What I used to do and found that worked well was just to get a some vague impression of how some technique was suppose to work and then I'd study it and find out how it really worked.
* Even more so, today's markets are becoming super efficient. The time is now better spent in running your own proprietary analysis then in reading books.

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