Orderflow trading

January 22nd, 2016, 04:57 PM

Hi @Segwin
A volumeladder is a footprint chart. Here you can use if you are an elite member the gomi suite.

January 22nd, 2016, 05:28 PM

ignacio90

Hi @Segwin

Nice Thread. Order flow is not an easy way because can have a lot of subjectivity when you are out of context. My recomendation on that is:

1. Have a method to take context. Candle charts to see price action, volume profile or market profile can be a good option to take the context
2. Look at buy and sell activity in 2 ways:
Intentions (limits)
Agressors (market orders)
3. Use OF on specific areas. Those can be produced with the same orderflow information or previously looking at context and structure.

Let's discuss an example:

Here you have an structure chart 2 minuts and this can be a good option to start looking some short term structure. I'm not an specialist reading price action but take things the more easy you can:

Then we can focus on intentions and see how this structure is reacting at those levels. For that you can use any software available that can give you this map (jigsaw, bookmap....)

Now we can look at a volume ladder chart to see the reactions at this structure points and intentions map, for the confirmation about what is logic to find (support: buy activity/resistence: sell activity)

With this 3 components and knowing how to read them, you can have a nice picture about what is likely to happen in a short term. Like you see is not easy and is more and lonely way with a lot of hours to run, but is a good option to trade looking at what the professionals are doing. If you want to discuss more, let me know what topics you want. Like the sea, is a big knowledge and you first need to know if you feel confortable using the reading method and then focus in specific tools, not trying to know about all but knowing well what you use.

@ignacio90 Good stuff.
cheers

January 25th, 2016, 04:14 AM

hi ignacio , nice explanation of these components and thanks a lot!
but canu take a little time , and tell me where can i go to learn these three components since i am new to trading of ?

thanks again!

January 25th, 2016, 02:15 PM

ignacio90

Hi @Segwin

Nice Thread. Order flow is not an easy way because can have a lot of subjectivity when you are out of context. My recomendation on that is:

1. Have a method to take context. Candle charts to see price action, volume profile or market profile can be a good option to take the context
2. Look at buy and sell activity in 2 ways:
Intentions (limits)
Agressors (market orders)
3. Use OF on specific areas. Those can be produced with the same orderflow information or previously looking at context and structure.

Let's discuss an example:

Here you have an structure chart 2 minuts and this can be a good option to start looking some short term structure. I'm not an specialist reading price action but take things the more easy you can:

Then we can focus on intentions and see how this structure is reacting at those levels. For that you can use any software available that can give you this map (jigsaw, bookmap....)

Now we can look at a volume ladder chart to see the reactions at this structure points and intentions map, for the confirmation about what is logic to find (support: buy activity/resistence: sell activity)

With this 3 components and knowing how to read them, you can have a nice picture about what is likely to happen in a short term. Like you see is not easy and is more and lonely way with a lot of hours to run, but is a good option to trade looking at what the professionals are doing. If you want to discuss more, let me know what topics you want. Like the sea, is a big knowledge and you first need to know if you feel confortable using the reading method and then focus in specific tools, not trying to know about all but knowing well what you use.

how did you get the heat map on your price bar charts ?

January 25th, 2016, 02:51 PM

Hi @fasih
At this forum you can learn a lot from other orderflow traders. There are a few. You can ask what you need and sure you will have the help you need for cave your own way on this.

Speaking about orderflow today was a nice day in the e-mini to look at orderflow. Quiet day with a few actions. Following the previous post and speaking about how orderflow can help you in taking decisions (not winning money, of course) we can discuss about this:

1)work zone or area to look, is what is called context. 1893 was a nice place to look. Near friday's close zone, up point from fifteen of this month
2) Intentions. For this we can see how was the intentions at this specific area and we can see a lot of limits orders trying to jump in the market. If someone wants to sell 3000 contracts someone will buy it. My understanding is that this buyers need to mantein this zone for expecting a movement up. Let's see:

3) Market orders. We can see at this zone, sell intentions. Previously we have an agressive buy movement, followed by a buy action, volume that need to support the way up, throught the previous supply absorbed. Down to this point the short trade was a possible action to take:

It's a short term analysis that can help you to spot how price action is reacting at buy and sell activity. It's not the only way to read it, but it's my way, and this is what anyone need to find, his way. In my case orderflow is a must tool, but i know other traders that don't use it. This is way previously to try to learn orderflow one need to define if it's somenthing confortable to him and then go ahead and support the large curve to master it.

January 28th, 2016, 11:00 AM

ignacio90

Hi, Ignacio.

Could you, please, tell us what are the indicators added to the charts you presented? Does the second image show the GomVolumeLadder or the VolumeLadderMetroEdition? Your data look very clear and I am having difficulties selecting the right parameters for both ladders. Could you, please, share a NinjaTrader chart template of your settings?

Thanks.

Orderflow trading

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Orderflow trading