Easy ways to incorporate orderflow

NexusFi · 2021-11-12T18:16:40-05:00

There are a few ways to incorporate OF into your entries depending on the kind of trader you are and time frame. If you trade mean reversion, you could consider: Cumulative Delta - Look for divergences at extremes indicating trapped traders. This doesn't work well at VPOC Footprint charts - Look for absorption or exhaustion at extremes. (Use VP shapes b or P to help here). If you're more comfortable trading momentum, then maybe: Cumulative Delta - Look for price and CD to move the same direction Footprint …

Discussion in Traders Hideout

Updated November 12, 2021

Easy ways to incorporate orderflow

November 12th, 2021, 06:16 PM

#11 (permalink)

creamyyy

Brisbane, Australia

Elite Member

Experience: Intermediate

Platform: Sierra Chart

Posts: 60 since Aug 2020

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tietzmann

Very good, I think this is the best explanation and example of Orderflow anyone ever gave me, thanks! When you say in the image that "buyers run into liquidity" are you seeing that just on footprint or are you seeing the limit orders on the book?

While I�m sure you could see it in the book, I see it only from the footprints. It�s not hard to spot where a high number of contracts are suddenly traded.

With Sierra, you can even plot out limit orders onto the chart so you get the best of both worlds. I just found it too distracting so I removed those.