LIVE: Day Trading With Order Flow and Delta (EUR/USD Futures)

Video summary

  1. I have identified a strong resistance on EUR/USD using Volume Profile. I published this resistance a week ago publicly on my website here: EUR/USD Volume Profile Analysis (14th October)
  2. I waited almost a week until the price reached this resistance.
  3. When it did, there was a strong uptrend the whole day. It would be risky to enter a short trade from the resistance just like that against this strong uptrend. For this reason, I used my Order Flow software where I wanted to see a sign of sellers around this resistance.
  4. In the Order Flow, I looked at 6E 12-20 instrument, which is EUR futures. It 100% correlates with EUR/USD (Forex) which I wanted to trade in my platform.
  5. When the price reached the volume-based resistance there was a significant divergence between price and Delta. Price was rising, but Delta was falling! This meant that even though the price was going up, strong and aggressive sellers were jumping in more and more! This is one of my favorite trade confirmations, so I jumped in the short trade.
  6. My original plan was to split my short position in two. Take 10 pip Take Profit with the first half and 20 pip Take Profit with the second half.
  7. I changed my original plan and quit the whole trade after I got the 10 pip Take Profit. There were two reasons for this: 1st – there formed a Failed Auction (works as a magnet) at the top of the chart. 2nd – going short against a strong uptrend is very risky and it is safer to take a smaller profit and be out of the trade quickly.
  8. In the end, the price really went upwards again and took the Failed Auction (as I was afraid it would). But by that time I already had my 10 pip profit banked.

Want to learn more about Order Flow?

This was a typical example of how to use Order Flow and Delta to confirm your trade entry.

In the video, I mentioned a lot of things you may not have understood. I explain that all as well as many Order Flow trading strategies in my Order Flow Video Course which you can get along With my Order Flow software here (now with -50% Halloween discount):

Get Dale’s Order Flow Pack Here

I hope you guys liked this video and that you found it interesting and helpful. Let me know what you think in the comments below!

Happy trading!

-Dale

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4 Comments

    1. Trader Dale

      that is Cumulative Delta, not Option Delta. My Delta shows Ask-Bid for the whole day cumulatively.

  1. Tim

    Nice, but can we also use VWAP as it also show us the volumes behind a trend? If the VWAP line doesn’t align with the uptrend, can we conclude there are no aggressive buyers in the trend?

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