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What is order flow trading?

  • #61
  • May 29, 2013 8:05am May 29, 2013 8:05am
Quoting CaymanTrader
Markets driven by month-end flows and no real fundamental reason for this USD downmove, so good opportunity to fade. We'll need to keep a watchful eye on USD/JPY and Treasuries though...
Agreed mate fading !!!
  • #62
  • Apr 4, 2014 2:04pm Apr 4, 2014 2:04pm
Ahhh…Order Flow… Since Ive traded OF for 15 years and pioneered a data firm that studied Order Flow alone.. I'll chime in. It seems most are on the topics surface but just that. There are a number of fragments of Order Flow that when put together complete a rather simplistic means of reading flow, gauging sentiment and following the institutions.

1. Volumes… On the bid or ask.. This is passive trading… But the value is how many bidders actually jump ship from passive to taking an aggressive stance/position. 95% of banks are aggressive traders 1'st. (Passive Market Makers 2'nd). Crux # 1 that seems to have been missed. (By volume banks are aggressive 2/1 over passive positions/market making).
2. Speed of Ticks… (from ECN's, not MT4 Brokers servers).. This is the frequency of position jockeying.. just before a turn or continuation of a movement. ( You know the direction immediately after the frequency subsides)… but the direction is there to stay for a few minutes...
3. Cycles.. Market Cycles determine flow and the 'timing' as to when flow will increase tick frequency (2).
4. Order Flow in a particular pair….. it's seen in other pairs via correlation.
5. Stops are junk on 210/220 days… not available on 99% of platforms and if you're going to follow that one platform.. you have an edge against a mere 1% of players.. good luck.
6. Expansions.. .or Retracements.. There are formulas that give precise targets without theories… as to where prices should extend their gains to.. if they don't make it, it's a failure on your front door, ride it!
7. Reading Order Flow isn't restricted to 1M charts.. its fluid across all time frames and quite adaptable for those that understand how.

If your monitoring more than 50% of these you're on the right track. But leave more than that out.. your trading is based on luck and not a consistent >80% w/l ratio.

The attached chart is an algorithm that measures the data, cycles, sentiment, price action and expansions.. it combines the order flow and presents a lower window indicator with vertical red/green lines that are buy/sell trigger lines. It's amazing what you CAN do with MT4 once you eliminate their problems and inhibitors of good trading.

Although I don't trade on MT4.. I do use it for its simplicity of trading algorithms… and developing sound testing environments… This chart was from today 4/4/14
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdm1 copy.jpg Size: 182 KB
  • #63
  • Aug 3, 2016 9:55am Aug 3, 2016 9:55am
but chart is good and what indicator is this?
Success is a Journey Not a Destination....... kind regards ramzam
  • #64
  • Aug 3, 2016 5:10pm Aug 3, 2016 5:10pm
​Imo order flow is the new stochastic, fib or gann to sucker in retail traders. And its very plausible as volume and deltas are whats required in reading the charts strengths etc BUT using it in the way its being advertised is imo very wrong.

Playing in such a small space where spoofs, algos and sharks play is imo very silly. Choose your times of using order flow very carefully. This comes from hours of analyst and wconomist work. Trading forex is not just indicators on a chart. Its a hige job that requires full time hours. Anything else is gambling.

And these models of 100 trades where you can lose all your money in one group of expectancy outcome .... Not good. Be very careful.
  • #65
  • Aug 3, 2016 7:47pm Aug 3, 2016 7:47pm
Quoting Eagleprice
Hello Friends I am quite new to this concept ,If someone here please explain me what is this all about? What exactly is order flow trading and how it works? Thanks and regards Eagleprice

Basically OFT is BS at it's best.One of the greatest proponents of BS trading....oppps I mean OFT is "Darkstar" a great marketer of BS here on the FF.
  • #66
  • Aug 3, 2016 8:51pm Aug 3, 2016 8:51pm
Quoting srmfx
{quote} Only the FX dealing desks of the big banks in London and NY have good info about the orders, but this is not making the order flow trading impossible. Quote reading gives you pretty good idea what orders are filled at the market. I use this approach for years.
would you be willing to explain "order flow approach" in plain English and show on chart?
  • #67
  • Aug 4, 2016 1:30am Aug 4, 2016 1:30am
OF out of hiding (;

Attached Image
  • #68
  • Aug 4, 2016 2:25am Aug 4, 2016 2:25am
Quoting ruma29
{quote} would you be willing to explain "order flow approach" in plain English and show on chart?
I can't explain this in a few words.
This is what I call my road map. The arrows show price levels where I expected that larger bids and offers are placed. I trade them via 1-minute binary options. The idea is that the bids or offers should be strong enough to stop the price for 1 minute and the option will expire ITM.
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDboM30.png Size: 68 KB
  • #69
  • Aug 4, 2016 3:56am Aug 4, 2016 3:56am
i read from net for this order flow need tick data and ninja trader only getting this benefits.. no other platforms ... so we cant get in mt4... it is bitter thing to realise...
here i read some thing but to be frank still i have to increase my understanding capacity..
http://www.orderflows.com/wp-content.../trapped-2.png
Success is a Journey Not a Destination....... kind regards ramzam
  • #70
  • Aug 4, 2016 10:12pm Aug 4, 2016 10:12pm
I have read thread about order flows on baby pips, if you have any doubt you can check it out for more details. It has so many article about the complete topic.
  • #71
  • Aug 5, 2016 1:24am Aug 5, 2016 1:24am
Quoting CaymanTrader
{quote} Sorry, but that is nonsense. Order flow trading is much more than DOM trading and can be applied in any market, whether FX Spot or Futures. You don't even need volume data to apply OFT concepts. Check out some of the old threads about OFT here on FF and you'll see that there is much more behind it, please don't spread misinformation.
Spot on, interestingly I've started looking at charts in a whole new way of which I've never read about on any forums and it's opened up a whole new world of seeing a chart,without saying too much it involves who's doing what in the price action (pro's or retail), where's the availability to fuel future intentions ? but it sounds like you know what I'm talking about so I leave it at that for now.
Never said I was Batman,all I'm saying is you'll never see us together.
  • #72
  • Aug 5, 2016 7:27am Aug 5, 2016 7:27am
Quoting srmfx
{quote} I can't explain this in a few words. ...
are there differential equitation of first and second degree? Integrals? just say logic behind "order flow"...no arrows on your chart ...
show on chart that "order flow" or places you think it is...
  • #73
  • Aug 5, 2016 8:04am Aug 5, 2016 8:04am
Quoting ruma29
{quote} are there differential equitation of first and second degree? Integrals? just say logic behind "order flow"...no arrows on your chart ... show on chart that "order flow" or places you think it is...
No differential equations. This is simple market logic. I have a few OF based strategies. One of them is entry around the market open. The flows make qick move of the price and you can get much better entry level.
http://www.forexfactory.com/showthre...70#post8985170

Trading around numbers. A lot of bids and offers

http://www.forexfactory.com/showthre...32#post8842132

My road map.
http://www.forexfactory.com/showthre...81#post8822481

You can call it whatever you want, but everybody is trying to go with the flow. When you have experience at the real market it is much more easier and know why the price is bouncing off support, attacking an option barrier or not moving when there is a larger option experience.
  • #74
  • Aug 5, 2016 10:54am Aug 5, 2016 10:54am
Quoting edge540
{quote} Basically OFT is BS at it's best.One of the greatest proponents of BS trading....oppps I mean OFT is "Darkstar" a great marketer of BS here on the FF.
FULL ACK !!!

Nobody knows shit (besides insiders and cheaters).

Forget this mystical OFT BS. and Volume trading.
  • #75
  • Aug 6, 2016 12:11am Aug 6, 2016 12:11am
Quoting The-Flipper
{quote} FULL ACK !!! Nobody knows shit (besides insiders and cheaters). Forget this mystical OFT BS. and Volume trading.
The-Flipper, that's why the OF analysis is working. If everybody is understanding the order flow it will be useless. Trading is a zero sum game.
  • #76
  • Aug 8, 2016 9:28am Aug 8, 2016 9:28am
The only way to make money is trading with momentum.
Everything else is wishful thinking.
  • #77
  • Aug 8, 2016 11:05am Aug 8, 2016 11:05am
Quoting srmfx
{quote} The-Flipper, that's why the OF analysis is working. If everybody is understanding the order flow it will be useless. Trading is a zero sum game.
I think is more a zero/negative sum game
We all, retail traders, start our trading in disadvantage, spread, commissions ....
"You may say I am a dreamer .... but I am not the only one."
  • #78
  • Aug 8, 2016 1:13pm Aug 8, 2016 1:13pm
Quoting guesser
{quote} I think is more a zero/negative sum game We all, retail traders, start our trading in disadvantage, spread, commissions ....
  • #79
  • Aug 8, 2016 1:14pm Aug 8, 2016 1:14pm
Quoting The-Flipper
The only way to make money is trading with momentum. Everything else is wishful thinking.
How this momentum is generated?
  • #80
  • Aug 8, 2016 2:36pm Aug 8, 2016 2:36pm
Quoting AvantEdgeFX
AhhhOrder Flow Since Ive traded OF for 15 years and pioneered a data firm that studied Order Flow alone.. I'll chime in. It seems most are on the topics surface but just that. There are a number of fragments of Order Flow that when put together complete a rather simplistic means of reading flow, gauging sentiment and following the institutions. 1. Volumes On the bid or ask.. This is passive trading But the value is how many bidders actually jump ship from passive to taking an aggressive stance/position. 95% of banks are aggressive traders 1'st....
some jems in there,
2,3,4,6,7 enough correct imfo there to make your money
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