Order Flow & Volume Profile Live Trading (USD/CAD Futures)

Trade Summary:

1. I identified a strong Support using Volume Profile and VWAP Trading setups.

2. When the price was near that Support I opened the Order Flow chart and I wanted to see some confirmation. Confirmation which would tell me that the BIG guys are also trading this.

3. After the price hit the Support, huge volumes appeared on Bid. Those were most likely Buyers who entered Long trades with Limit orders.

*I was talking about this trade entry confirmation in an Order Flow webinar I had recently. You can watch the recording here:

ORDER FLOW: Trading Setups (WEBINAR RECORDING)

4. I placed my Take Profit in a place where heavy volumes showed before. Heavy volume zones often work as Support/Resistance zones. Staying in a Long trade when it hits a volume-based Resistance would be risky.

I hope you guys liked the video, let me know what you think in the comments below!

Have a GREAT weekend

-Dale

P.S. During the recent Order Flow webinar I made a special offer: -40% discount on my Order Flow Pack. You can get it until the end of February 2021 HERE

An Invisible Trading Opportunity: Volume Profile and Order Flow Trade Analysis

Hello guys,

in today’s analysis, I would like to talk about a trade I had yesterday on USD/JPY (futures symbol: 6J 03-21).

This trade was particularly interesting because this trading opportunity would be COMPLETELY HIDDEN from everyone who does not use Volume Profile or Order Flow.

Let me start from the beginning…

There was a day trading support on JPY Futures (6J 03-21) around 0.0094935. I was talking about my intention of trading this in my Members area in my Daily Levels Commentary video.

This trading level was based on a Volume Profile setup called the “Trend Setup“.

Volume Profile – Trend Setup

The main idea behind this setup was that the price was going upwards and that there were heavy volumes (Volume Cluster) created within this up-move.

Such a Volume Cluster indicates that Buyers were adding to their Long positions there.

To trade this setup, you simply wait for a pullback and go Long from this area. The reason the price should go up again is that Buyers should defend this zone (it is important for them) and push the price upwards again.

You can learn more about my Volume Profile setups for example in this webinar:

Volume Profile Setups (WEBINAR RECORDING)

This trading opportunity was completely invisible for everyone who does not use Volume Profile. That’s why I like trading with Volume Profile so much!

Check the Support out on the JPY Futures (6J 03-21); 30 Minute chart below:

Order Flow

I was shooting my members Daily video, when there was the rotation before the level got hit. In this video, I said that I wanted to see some confirmation of this trade on Order Flow software.

And this brings us to the Order Flow webinar which I had a couple of days ago. One of the
“confirmation setups” I showed at the webinar was a “Divergence between Price and Delta”.

If you don’t know what “Delta” or “Price and Delta Divergence” means, then I suggest you check out the webinar recording here:

ORDER FLOW: Trading Setups (WEBINAR)

In this trade yesterday, there was one of the craziest and biggest divergences I ever saw.

The price was dropping but Buyers were entering their Longs like crazy!

Check it out on this 30 Minute Order Flow chart:

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Price vs. Cumulative Delta (DIVERGENCE)

Let’s have a look into a more detailed chart, which shows 1 Minute Price versus 1 Minute Cumulative Delta (this is where I mostly look for divergences).

Below, you can see what happened when the price hit the Support zone:

The Price went below my trade entry, but Cumulative Delta was rising like crazy and it was literally shouting at me: BUYERS, BUYERS, BUYERS!!!

This was a very strong confirmation that the Price would most likely turn upwards – strong Buyers were making their move there. This is exactly what you want to see. This is what trade entry confirmation is all about!

Now, if the price was just rotating below my Long entry without this Delta confirmation, then I would be pretty nervous. I would most likely try to quit the trade around Break Even. BUT because there was this massive divergence, I was pretty confident and almost certain that the price will rise dramatically.

That’s exactly what happened. Check it out on the chart below:

An Invisible Trading Opportunity

What I like about this the most is that this trade was completely invisible to everybody who does not follow volumes.

Trade entry was based just on volumes. Then when the price hit the Support, we used Order Flow to see what was going on. People without Order Flow or Delta would not see it! They would just see the price shooting past their level without much of a reaction.

See the difference? That’s exactly what I was talking about at the Order Flow webinar!

I hope you guys liked this trade analysis. Let me know what you think in the comments below!

Happy trading!

-Dale

A Simple Order Flow Strategy – EXPLAINED

This video shows a very simple Order Flow trading strategy.

The strategy uses a special feature of my Order Flow called the Trades Filter.

Check it out:

Want to learn more about Order Flow? Check out this Beginners Guide:

Beginners Guide To Order Flow

I hope you liked the video and that you found the strategy explanation helpful! Let me know in the comments below.

Happy trading!

-Dale

AUD/USD: Order Flow analysis – How to predict turning point in a spike

There was an unexpected announcement made in today’s Asian session. It was said that the trade deal between US and China would be terminated.

Price Action

This news caused some pretty wild movement all over the markets. One of the most active currency futures in the Asian session is the 6A (AUD/USD futures) so let’s have a look at what happened there!

If you look at the price action chart below, you can see that there was a 70 pip spike. Unfortunately, this is all what the price chart can tell us. It can’t predict the turning point of this spike (it’s low). So, if you are trading in a situation like this, then simple price action won’t really help you.

Order Flow analysis

What can help you however, is the Order Flow! If you look at the picture below, you will see the detail of the price spike the AUD made.

There were massive volumes traded a little bit above the turning point. Those volumes were traded on Bid as well as on Ask. What it means is this:

Sellers were pushing the price aggressively downwards. They did so by placing aggressive Market orders. What happened next was that buyers started to show up and they started to absorb the selling pressure. This means that even though the aggressive sellers were jumping in with Market orders, the buyers were able to buy all the selling pressure.

This is called the “Absorption“. It usually occurs around turning points and the main sign is that you see massive volumes appear both on Bid and also on Ask of the footprint.

I marked that in the picture below. The main thing to notice is the unusually heavy volumes both on Bid and on Ask.

6A 09-20 (AUD futures), 30 Minute Order Flow chart:

Price and Delta Divergence

Apart from the Absorption, there was also one more very important signal telling you that the price was likely to turn. It was a divergence between price and Delta.

Simply put, what Delta shows the difference between aggressive buyers and aggressive sellers.

In the picture below you can see that the price went downwards, but by that time the Delta has already turned upwards. This is called the “divergence between price and delta“.

In this case it told us, that even though the price was going downwards, buyers were entering their positions!

In a situation like this the price usually follows Delta. That’s why this divergence was another signal that the price would most likely turn.

6A 09-20, 1 Minute chart:

Summary

To sum this up – when the price of the AUD went downwards sharply today, there were two signals that the price would turn up again:

First, the Absorption which was telling us that buyers were absorbing the selling pressure.

Second, a divergence between Price and Delta telling us that even though the price was dropping, more and more buyers were jumping in and that the price was likely to turn upwards again.

Where to get Order Flow & Delta

You can get my custom made Order Flow + Delta here:

TD Order Flow Software & Training – Click Here

The Order Flow Package includes Lifetime Access To:

  • Order Flow software
  • Order Flow Video Course (12 hours long)
  • Volume Profile Pack

Additionally, you can get our proprietary Order Flow software as a standalone product via the Order Flow page I’ve linked to above.

Happy trading!

-Dale

NZD/CAD – Volume Profile & Order Flow Analysis

Today, I would like to have a closer look at NZD/CAD. What caught my eye here was a strong sell-off that occurred last week (13th May).

Such a strong sell-off is a sign of aggressive sellers jumping in and pushing the price downwards.

In this case, it is pretty easy to spot where those sellers were accumulating their selling positions before they started the aggressive sell-off.

Price Action

Price Action shows that there was a rotation before the sell-off started. Such a rotation is an ideal place for position accumulation.

The reason is that in a rotation those sellers could easily hide their intentions (of starting a sell-off) and slowly, unnoticed accumulated their short positions.

Volume Profile

If you look at the Weekly Volume Profile (on the left) then you can see massive volumes accumulated exactly in that rotation area.

In fact, the heaviest volumes throughout the whole week got accumulated there! (= Weekly Point Of Control).

After those volumes got accumulated → BOOM! A sell-off! It is this sell-off where the sellers were making money.

Now the price is slowly retracing back into this area (to test the Weekly POC at 0.8548).

I think that it will work as a strong resistance and that those sellers will want to defend their short positions.

It is likely, that they will start selling again and try and push the price downwards again.

Below is a 60 Minute chart of NZD/CAD with Weekly Volume Profiles:

Order Flow

We can also identify those sellers using Order Flow!

I zoomed into the rotation area which was formed before the sell-off started to show you how it looked like in there.

The thing which I think is the most important here is the High Volume Nodes. They are easy to identify (at last with my software) because they are printed in darker shades and put into a frame.

There are two especially strong ones, and the strongest one (1440) was formed just before the sell-off started.

Those were without any doubt strong sellers getting ready!

That’s a nice confirmation of the resistance we initially found using the Volume Profile! We can actually see the big guys getting ready here! Cool, right?

You know, I am really proud that we were able to make the Order Flow like this. I don’t think there is any other Order Flow software able to read Forex this way!

Below is NZD/CAD Order Flow. The footprints show 30 Minute candles and the volumes traded in them:

I hope you guys liked today’s analysis! Let me know what you think in the comments below!

Happy trading!

-Dale

PS. You can now get my new ORDER FLOW PACK (including Order Flow software, Order Flow Video Course, and Volume Profile Pack) here: ORDER FLOW PACK

How to Use Order Flow on Forex

Today, I will do an intraday analysis of CHF/JPY. It will be a bit different this time because I will also use Order Flow.

Let’s first talk about what the Price Action and Volume Profile show.

There has been a strong downtrend since the beginning of this week. There haven’t been any major pullbacks and the price has been heading downwards steadily.

Volume Profile analysis

When there is a trend like this I like to use my Volume Profile to look in that trend area. What I look for are significant Volume Clusters (areas where heavy volumes were traded).

The reason CHF/JPY caught my eye today was because there are THREE Volume Clusters! Three very nicely visible and easy to identify heavy volume areas.

I believe that the volumes we see in those three areas were aggressive sellers, who were adding to their selling positions.

After each volume accumulation, those sellers pushed the price aggressively downwards – to make money on those positions they have entered in the Volume Cluster areas.

Those Volume Clusters now represent significant resistance zones. If there is no change in the market sentiment those zones should hold and reverse the price (when there is a pullback).

Logic behind Volume Clusters

The logic behind this is that the sellers who have entered their short positions in those Volume Clusters will want to defend their shorts. And if there is a pullback, then those guys are most likely to start selling and pushing the price downwards again. That’s why I think those three areas will work as resistances.

You can see all that in the screenshot below. It shows 30 Minute chart of CHF/JPY along with those three resistances:

Order Flow

The Order Flow software is usually used with Futures. However, my software has some special features which allows you to use it on Forex too! The functions are limited because Forex is decentralized but still it is pretty helpful!

I used the Order Flow to look into detail how the 109.51 resistance area looks like – how exactly the volumes were distributed there.

Heavy volume nodes (HVN)

The most important thing to notice is how the heavy volume nodes were distributed (HVN = those numbers in black rectangles showing where the heaviest volumes were traded in the given footprint).

What I want to see is heavy volume nodes created very close to each other – in one price level area. In the picture below, you can see that many of them were created around the 109.51 area.

This gives me another confirmation that the sellers were interested especially in this area. It also helps me identify the best place for a short trade.

In this case, it would be exactly 109.51 because this is where two heavy volume nodes were next to each other. To me this is the most important level which I was able to pin-point with Order Flow.

This is an effective way how you can use Order Flow on Forex to look into detail how support and resistance areas were formed.

If you see heavy volume nodes very close to one price level, then this makes the support/resistance stronger. It confirms it. It also makes your trade entry more precise (you want to enter your trade at the price level where heavy volume nodes were created).

I hope you guys liked today’s analysis! Let me know what you think in the comments below!

Stay safe and happy trading!

-Dale

Do you want ME to help YOU with your trading?

Join one of my Volume Profile Educational courses and get my private trading levels, 15 hours of video content, my custom made Volume Profile indicators, and more!

Live Trading S&P 500 with Order Flow

In my yesterday’s video  (Weekly Trading Ideas) I showed you a resistance on S&P 500 which I found using Volume Profile.

This resistance got hit in the late New York session yesterday.

I was using my Order Flow + Delta software because I wanted to see some confirmation of this level.

I wanted to see sellers show up before I entered the short.

I recorded the whole thing and I was commenting on what I saw on the Order Flow and Delta.

You can watch the whole video below:

BTW. I was talking about some things you maybe won’t understand but they will be fully described in the Order Flow Video Course which I am working on now.

Do you want ME to help YOU with your trading?

Join one of my Volume Profile Educational courses and get my private trading levels, 15 hours of video content, my custom made Volume Profile indicators, and more!

I hope you guys liked the video and that you found it useful

Happy trading!

-Dale

PS: here are some answers to questions about my new Order Flow which I get daily 🙂

  1. Release date – around 2 weeks. I am still working on the Video Course.
  2. Price – I don’t know yet.
  3. It will only work on NT8.
  4. Delta indicator will be part of the Order Flow package.

EUR/USD: Order Flow Analysis

The Order Flow is a software that reads all the trades that are filled in the market, and then it prints them in a chart so you can read them. It also shows you if the trade was filled at Bid or on the Ask side.

If you take all that and print it into one chart, then it could become a bit overwhelming and confusing. Nobody will ever be able to read all the numbers jumping in and make head or tails out of them. That would be like reading in the Matrix… It is just too much information to process.

That’s why we need to visually distinguish the important info.

If I simply print all the data coming in into a chart, then it will look like the picture below. What helps is the green/red colors and also the different shades. But still, if you have only a little experience with the Order Flow, then it is hard to know what exactly to look for.

Below is a 30 Minute Order Flow chart of the EUR currency futures (6e 06-20)

Trades Filter

Is the picture above too complicated? Don’t worry!

The new Order Flow video course which I am working on right now will teach you what exactly to look for and you will be able to understand even this!

But there are also ways how to make things way easier! One of those things is a Trades Filter (or as I also like to call it: “The Big guys filter”).

This cool feature is able to filter out all smaller trades (low volume trades) and leave only the biggest ones.

Those are without doubt trades of the BIG guys (financial institutions). Those are the ones you want to follow with the Order Flow!

In the picture below I filtered out all the trades that were smaller than 25 contracts. It left only few big trades and the rest is printed as 0. Now you see where the BIG guys were active and where they entered their big trades!

Suddenly the Order Flow chart is super easy to read, right?

How to read the Trades Filter

There was a rotation in which heavy volumes were accumulated (you can see this on the Volume Profile on the left).

Then at the end of the rotation, the BIG guys started to jump in with heavy volumes and they started a strong buying activity.

Those heavy volumes were on the ASK side of the market. It indicates that those were made with MARKET BUY orders (=big guys wanting to start a trend are buying aggressively)

What do you think will happen when the price makes a pullback into this area again? I think that those BIG guys will want to defend their longs which they placed there and they will most likely start pushing the price upwards again! This will make this area a strong support.

This is super simple strategy! Combine it with the Volume Profile and you have a great trading system!

BTW if you are wondering where this support is on EUR/USD (forex), then it is around 1.0850.

Be careful though, there is a significant macro news coming up later today (the US GDP, and later on the FOMC). Don’t place any trades around this!

Release info

My Order Flow software will be out pretty soon. I hope in 2-3 weeks. It is almost finished now, but I am still working on an Order Flow video course.

I want to give you the full service, not just the indicator. I want to make sure that when you have the indicator, you know EXACTLY how to work with it and that you feel confident using it.

My Order Flow will have many very useful features like this one to make it as easy as possible to read.

It will be pretty unique and I cannot wait to release it!

Stay safe and happy trading!

-Dale

Do you want ME to help YOU with your trading?

Join one of my Volume Profile Educational courses and get my private trading levels, 15 hours of video content, my custom made Volume Profile indicators, and more!

EUR/USD: Order Flow Analysis

Some of you probably know that I am developing my own Order Flow software. It is not 100% ready for release yet, mostly because I still need to finish a video course that will go with it.

I guess that all will be finished within a month or so… (no guarantees :))

My plan was to present it to you when it was all 100% done and finished but I just couldn’t wait! So this will be the first short article about using the Order Flow in real trading.

*I am not going to talk about all the features and strategies here (you will learn all that in the Order Flow Video Course) but I will just jump right into it and show you how to use Order Flow in your trading.

Order Flow as a confirmation to Volume Profile

One of the ways you can use the Order Flow is to look for a confirmation in strong support/resistance zones.

As an example, I will use a support which I showed you on Tuesday in a Weekly Trading Ideas video. This one:

How To Trade The Weekly POC – Weekly Trading Ideas 14.4.2020

The support I talked about was on EUR/USD at 1.0869. This was the prediction (screenshot from the video):

This is how the trade went:

The picture below shows a candle chart of EUR/USD (with the support from the video) and also the zoomed-in Order Flow chart of the same area (both 30 minute time frame):

Important notice before we jump into it

Before I start talking about what the Order Flow showed when it hit the support, I need to tell you two important things:

1. Supports/resistances are NOT EXACT levels. They are ZONES. In those zones we want to see a confirmation that the big guys are going to react to these zones.

2. I prefer using Order Flow on Futures charts (because those are centralized – as opposed to Forex which is decentralized). So, I trade Forex but I look at Futures. That’s why the pictures below are not on EUR/USD but on 6E 06-20 (EUR Futures). The prices are bit different but the correlation is almost 100% (they move exactly the same).

ORDER FLOW ANALYSIS

When the price hit the support area (which was based on Weekly Volume Profile) I was looking for some sort of confirmation on the Order Flow.

At first there was nothing and the price overshot the 1.0869 (forex) level (but it was still in the support area which was around 20 pip wide). Then three nice confirmations on the Order Flow appeared:

#1 Confirmation: Buying imbalances

Strong and aggressive buyers started to jump in.

How do I know there were strong and aggressive buyers? If you look at the chart below, then I marked four BLUE numbers. Those are called “Buying imbalances“. They mean that buyers are way more stronger & aggressive than sellers (there are way more volumes traded on the Offer side than on the Bid side).

#2 Confirmation: A BIG order

Shortly after the strong buyers started to jump into their longs, there was a crazy big order (1223 lots) placed on the Offer (aggressive buy order). This was another nice confirmation because some BIG guy was waiting for this level and he has just entered the game! That’s what you want to see – big guys on your side 🙂

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#3 Confirmation: Positive Delta

The table at the bottom shows (among other things) Delta.

Delta essentially shows the difference between Bid (sellers) and Offer (buyers) in a given candle.

In the picture below, you can see that at first the Delta was NEGATIVE (-166, -207, -192). Then it turned greatly POSITIVE (+1576).

This means that there were more aggressive buyers than sellers.

That’s another confirmation I like to see when a price reaches a support!

Even one of those three confirmations would be the final push I would need to enter the long. Having three of them – that is gold!

I hope you guys liked today’s Order Flow analysis! Let me know what you think in the comments below!

Happy trading!

-Dale

 

P.S. – Answers to most common questions about my Order Flow 🙂

  1. I don’t know the exact release date yet (I hope within a month)
  2. I don’t know the price yet, but don’t worry I don’t want it to be expensive.
  3. It will be only for NinjaTrader 8 platform. No MT4/MT5.

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