Monday, 24 November 2014

Reading the Order Flow Gives Clear Direction

Reading the order flow has never been as clear from off floor as it is now. We have the tools to make it all clear or as least as clear as it was on the floor, if not more. Reading order flow is like learning a language - just about anyone can learn a language.

The picture below is made up of three parts:

  1. Dynamic new Market Profile
  2. Legacy Market profile
  3. Order Flow bar chart (Volume Imbalance)
I have automated the highest probability entries but do take other entries manually when they fit with the context and my trading plan.

A key part of a trading plan is to know what to do when a trade goes against you, as it will. There are usually just a few choices, all based on back testing:
  • Exit at a loss based on money or specific market activity
  • Wait until the trade turns either profitable or break even
  • Double down and wait until the market puts you into profit or break even


  1. Hi Tom, long time student here with a question. Do you think the new dynamic profiles that your using offers better support/resistance levels than just taking the legacy profile and breaking it up into it's distributions. Also, are you using the stock settings for the volume profile and volume imbalance in market delta or are you tweaking the settings ? For example the Automatic setting for the volume imbalance is 140% but some people use 200-300%. Looking forward to the new book. Hope all is well.


    1. Good to hear from you John. I'll try and post on this tomorrow