If there is a rotation, then institutions often mix Limit orders and Market orders in order to get into their positions unnoticed and to hide their intentions. This is usually their goal when there is a rotation (to enter their positions unnoticed). They use “iceberg orders” (they split their orders into very small positions) and they use both Limit orders as well as Market orders. For this reason, it is very difficult to say what is going on in a rotation.

If you want to tell when the market starts to rotate, then instead of Order Flow I would check Volume Profile. For example: P-shaped Volume Profile after an uptrend means that the trend has most likely ended, at least for now.

You can check this free mini Volume Profile course

Another great tool for telling apart “trend” and “sideways development” apart is VWAP. It is very simple. You can learn it for example in this VWAP webinar recording:

VWAP Trading Setups (WEBINAR RECORDING)

I think it depends on his strategy. With my strategy there is no problem with high liquidity instruments. My most favorite instrument is 6E (EUR futures) which is by far the most liquid currency Futures! Thanks to the special features my Order Flow has it is easy to read it and understand even markets with high liquidity. I never really had problems with that.

There is a scenario that could cause this. Imagine that the price goes downwards and hits a Buy Limit Order. This Buy Limit order would show on Bid and therefore it would cause a drop in Cumulative Delta (even though it was Buyers!).

That’s why I said in the webinar that Delta is not a Holy Grail – Limit Orders can mess it up. If there were no Limit orders, then Delta probably would be a Holy Grail 😊.

After such a scenario I would expect Aggressive Buyers start to jump in quickly, turning the Delta upwards again. Because of this, such a divergence should not take too long and Delta should start to follow the Price soon.

If it were 211×93 then it would either mean Aggressive Sellers or Passive Buyers. In such case, I would lean towards thinking that those guys were Aggressive Sellers (because the price was in a Resistance zone).

As a confirmation, I slightly prefer Limit Order. A situation where the high-volume node is 93×211.

A confirmation I like the most is when a Limit order is followed by Aggressive orders. This means that first, a BIG institution jumps in a trade with a Limit order and quickly after that other Aggressive market participants start to jump in with Market Orders.

 I write more about that in my Order Flow book. Check it out!

When the price goes up after hitting a Support zone, but Delta does not follow, then I consider it a warning. The reason is that the Price is rising, but the Aggressive buyers are missing. You need to see them present to push the price up. Up move without strong Buyers is short lived. In such a case it is better to take a small profit and quit the trade before the price turns downwards again.

There could be such a scenario when there is a big Limit order (driving delta downwards), but after this, the Aggressive market participants should jump in quickly and join the party (and drive the Delta up again). If this does not happen quickly, then it is best to take a small profit and quit the trade.

No, it isn’t. Order Flow is best for scalping and intraday trading. The best tool for swing trading is Volume Profile.

It’s hard to tell a precise number because different trading instruments have different volatility. Very roughly 10 pips on major currency pairs (EUR, AUD, CAD, JPY…)

Absolutely. It works best with Volume Profile! That’s how I use it and how I can teach you to use it in my Order Flow trading course.

If you meant like in one window (for example you have OF + EMA in one window), then this is not technically possible with my Order Flow. If you want to do this you simply open another window with another indicator there. I also do it this way. My day trading workspaces consist of 4 or 7 charts (depending on the number of screens I use).

Timing your entry is the biggest challenge when trading Price x Delta divergence as a standalone trading setup. For this reason, I prefer to trade this setup only when the Price reaches a Volume Profile based Support/Resistance zone. Otherwise, it would be pretty hard to tell when to pull the trigger.

When I see the divergence around my S/R level, I just enter the trade right away. Simply put: if the price is in a S/R zone and I spot a divergence I am in. Immediately.