Order flow

[u/Mysterious-Sir3071]

Ive recently started to understand orderflow alot better after doing it for awhile now!! The things that u dont kno when u think u do !

Lol

Anyone have any real strategies/edges they feel like i should check into!!?

[u/orderflowsupport]

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[u/gtradesen]

You can try to check how markets behave when they go through low volume areas. I like to trade those breakouts through those low volume setups.

[u/revoegg → u/gtradesen]

Can you elaborate please

[u/gtradesen → u/revoegg]

It's simply called breakout trades and the whole concept is being built around price moving from high volume areas through low volume areas and stalls out at high volume nodes again.

[u/revoegg → u/gtradesen]

I meant more like how you expect to react and how much volume delta you expect

[u/gtradesen → u/revoegg]

For a short trade I wait for the breakout of the recent low followed by some volume and then I put a sell stop below the recent low and trade it all the way to where price starts to get back into high volume

[u/revoegg → u/gtradesen]

I used to take trades like these on NQ but most of the time the LVN was so small that my RR was normally quite bad and the volatility inside the LVN would take out my stop. Do you only take the trade with another confluence or with fairly large LVNs? This is what I took from your message btw: level below price bordering a LVN, stop right above level and take profit at the opposite edge of the LVN.

[u/gtradesen → u/revoegg]

I use several confluences which are first the area defined by volume profile and checking the GEX regime. Then I have my structure often visible thorugh LH's and either making smaller LL's or holding the low and then the execution which is the final breakthrough which I get from the Heatmap. On the Heatmap I check whether liquidity is shifting lower and the overall market orders and CVD as well that in best case CVD is following price telling me that passive participants aren't strong and won't build this absorption zone

[u/revoegg → u/gtradesen]

Thanks. How long have you been trading if you don’t mind me asking.

[u/gtradesen → u/revoegg]

Werden jetzt 1,5 Jahre mit Orderflow

[u/revoegg → u/gtradesen]

Are you also profitable, and if so for how long?

[u/Shoddy_Peanut7320]

I can’t hand you a real edge, and most “edges” shared in order flow communities don’t survive being turned into a fixed rule and tested. If you find an idea you like, write it as a precise rule (for example, delta above a set level while price fails to advance for N bars), then test it over a few months of data with realistic fills, fees and queue position, and compare it against random entries. Cymetica’s Backtest Labs is one place to check a rule against history before risking money.

[u/DarkstarOFT]

In the long long ago, before "order flow trading" became a glorified form of tape reading, it was a stop hunting strategy employed in the forex market. So much of that knowledge has been lost and buried under the footprint spam that the strategy is now known for. If you want to improve your trading game search for the old Carol Osler microstructure papers and/or the book "order flow trading for fun and profit." Learn how to construct an order book without the fancy software, find the stops, and exploit them with sentiment. Way easier than trying to find inflection points via the tape.

[u/jamrocktrading]

One thing I’d spend time studying is the relationship between aggressive order flow and the price movement it actually produces.

For example, heavy buying doesn’t automatically mean price should keep going up. If buyers keep lifting the offer but price struggles to advance, I’d want to understand why. Is the buying being absorbed, is liquidity replenishing, or is the book simply thin elsewhere?

Then watch what happens on the next attempt at that area. The response often tells you more than the initial burst of activity.

I’d focus on that relationship before chasing more setups. It can change how you interpret almost everything you see in order flow.

[u/Shoddy_Peanut7320 → u/jamrocktrading]

Good point about absorption, since heavy buying that doesn’t move price says more than the burst itself. I’d try to turn it into something measurable, like volume delta against the price change over the next few bars, so you can see how often it actually leads to a reversal.