Welcome everyone to Orderflow basic tutorial series. In this
Orderflow analytics helps traders to understand the mechanism that moves the price and focus on what is happening in the market right now, what is the current trading behavior which is going on (Big orders, Momentum buyers/sellers, Momentum Exhaustion, Stop hunting, trapped buyers or sellers and many more nuances which helps traders in scalping/intraday trading.)
Different Names to Orderflow
- Tape Reading
- Volumetric Bars
- Footprint charts
- Bid x Ask Ladder
What one can do with Orderflow Tool?
Here are some of the ways where one can use
Stop Hunting: Track where other players keep their stop loss
Momentum Behavior : Track how momentum players drive short term momentum
Momentum Exhaustion : Track how intraday momentum exhaustion occurs.
Traders Confidence : Track weak & strong players behavior at key support/resistance
Absorption: Track how large orders absorb the liquidity and creates ceiling effect.
Most of the classical technical indicators/patterns look into the past data to take a trade decision. Whereas Orderflow studies rely only on present information and it focuses more on what is going on right now in the market.
Tools used for Orderflow Analytics
Some of the Frequently Asked Question before getting into the Orderflow Basic Terminologies
Can I use
Yes you can use
Can I use
Can I combine Orderflow with my existing studies?
Does Orderflow bifurcates volume into Buyers Volume/Sellers Volume
Which is the Best Timeframe to Apply Orderflow?
It depends upon what kind of trader you are. If you are
What knowledge is required to study the Orderflow Context?
Knowledge in Auction Market Theory (Market Profile) or Price Action or Volume Spread analysis helps traders to evaluate the underlying context.
Can I use Orderflow as Independent Decision making tool?
In the next tutorial, we will look into the basic terminology and key components of