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