Order Flow is an advanced charting software which enables us to read all trading orders that are processed in the market. It helps to track the BIG financial institutions and identify the strongest Support and Resistance zones.
The heavier the volumes, the darker the color. This makes it very easy to spot significant institutional areas. Those areas work as strong Support and Resistance zones.
The most important place in any footprint is the place where the heaviest volumes were traded.
TD Order Flow automatically highlights all those places so you can see them clearly and on the first sight.
There are many trading strategies you can built around this. I will teach you those strategies in the Order Flow Video Course!
Imbalances are printed in blue color and they show that one side of the market (Buyers/Sellers) is way more stronger than the other side.
The example below shows aggressive Buyers who are much stronger than Sellers.
More buying imbalances at top of each other are called “stacked imbalances” and they represent strong Support and Resistance zones.
Every footprint represents an Auction process. This process needs to end in a certain way. The High of each footprint needs to have 0 contracts traded at BID and at Low there needs to be 0 contracts traded on ASK. However, sometimes the auction process fails and the auction is left unfinished.
This represents a significant point which works as a magnet. The price tends to return there and “fix” this failed auction and turn it into a successful auction.
TD Order Flow identifies Unfinished Businesses and draws a line in the chart until the price re-visits this area again and the failed auction is fixed.
Trades Filter enables you to filter-out the smaller orders and only leave the biggest ones.
This filters out the “noise” and enables you to see clearly the most important thing – the BIG institutional orders!
Those BIG orders represent strong Support and Resistance zones.
Cumulative Delta is best used to spot Divergences between Price and Delta.
EXAMPLE: The price goes downwards but Cumulative Delta is rising (=Divergence). This means that despite the falling price, there are strong buyers entering their long positions.
This will most likely result in a change of the trend and the price will turn upwards.
You can use this as a standalone strategy or look for Divergences around strong Support and Resistance zones.
There are many more useful features and visual settings you can tweak.
TD Order Flow has for example, built-in Volume Profile which you can add to your charts (to see the bigger picture).
You can also turn on/off many different information panels in the summary below each chart. Those give you various additional information to use in your trading.
My suggestion is you pick only a few – the most important for your strategy, otherwise you will get lost in all the information.
You can tweak almost every visual or technical aspect of the TD Order Flow and adjust it exactly to your needs and preferences.
The software comes with my own trading Templates and Workspaces so if you don’t want to dig into the settings to much, you can just load my own settings and you will be all set to go!
Order Flow is fantastic but also complicated software. If you don’t know how to work with it it will all become very confusing. However, if you know how to read it and what to look for, then it becomes extremely powerful tool to read the market.
I am aware how complicated this could be, especially for a person who hears about Order Flow for the first time.
That’s why I made an in-depth Order Flow Video Course, where I will teach you all from the scratch!