Title: How order flow can improve your trading?
1How order flow can improve your trading?
2Trading strategies based on the volumes and Order
flow arriving in a market are among the most
effective for successful operations. If you are
not considering supply and demand in your trading
decisions, your trading decisions are lagging,
you are taking more risk in your trades using
price limits, and you have a hard-to-read chart
covered by lines. The Order flow trading
strategies can simplify your approach to
trading. Trading with Order Flow is simple
- Now, all you need to understand is what the
trading with order flow is about - keep track of quantities that have been bought
and sold at different prices - using this information to identify supply and
demand patterns we can then notice the price
levels at which there has been supplying or
demand - see if supply or demand is maintained or
interrupted when these price levels are revised
3- You can use various tools to view buy and sell
volumes at different price levels. These tools
can organize and present the raw purchase and
sale data. That's all you need once you're able
to interpret supply and demand conditions from
raw data. We can help you acquire these skills
through our online material, training courses,
and coaching..... however, applying order
flow indicators to this raw data can save time
and perform analyses that are too difficult for
humans to do or too fast to interpret. Let your
computer analyze the numbers and present this
refined data in an easier-to-use way to make
decisions. This is what vtrender.com's Order
flow trading software does. - Identify significant events in supply and demand
- Present them to you, and
- Follow the behavior of the levels over time.
- You can use this information for manual
discretionary trading, for alerts, or even to
automate trading. - Another amazing toll is the Order book
- The order book is also referred to as DOM (depth
of market). You can find the order book with the
best bid and ask prices. For most brokers, it can
also be used directly for placing and moving
orders. -
-
4In addition, professional platforms for order
flow trading strategies offer a variety of
plug-ins and the possibility of customizing the
DOM, for example via the so-called "Smart DOM".
Nowadays, the biggest problem for order
flow traders is algorithms, especially high-freque
ncy (HFT) traders. The Smart DOM tries to
recognize and analyze such algorithms. Ok, so
what can I trade with the order flow? The short
answer is anything the behavior of any market
is regulated by the laws of supply and demand. If
a market does not observe them, then it is not
profitable for trade, however, some goods and
markets are more favorable than others. That's
why Forex Very popular among retail traders
due to the easy access to accounts and the low
risk perceived by small pip values. However.....
Forex is a decentralized market. If you are able
to receive volume data, it will be the volume of
your broker, otherwise, your trading platform
will approximate the volume based on the number
of trades that have moved the price up to and the
number of trades that have moved the price down.
As a result, supply and demand information is
less accurate than information about stocks and
futures.
5Actions Better information than forex, but in
our opinion not as favorable as futures for day
trading or swing trading using order flow.
Because.....? First, although shares are traded
on their own exchanges (NASDAQ, NYSE, NYSE,
etc.), there are several "trading venues" and
dark pools, i.e. parallel exchanges where the
same shares can be bought and sold. This means
that the volume of information you receive from
your broker does not capture the entire picture
of buying and selling in the market. Secondly,
the 'pattern day trader' rule requires that if
you trade daily 4 or more times in a 5-day
period, you must maintain a minimum balance of
25,000 dollars in your account and you can trade
up to 4 times your previous excess daily
maintenance margin. This rule is designed to
reduce risks for small traders, but the minimum
account is large compared to that needed for a
futures account. Encryption currency Popular
among traders because of some exchanges that
provide great leverage. As with forex, you will
only see the volume that is traded on the
exchange where you are trading.
6Our challenge with crypto currency and order flow
is that whenever we have examined these markets
in depth, the sense of 'order' in supply and
demand is low compared to forward
markets. Future In our opinion the best markets
to trade using the flow of orders. Forward
contracts are traded on a single centralized
exchange. This means that you have visibility of
all the volumes traded and you have the complete
picture of supply and demand. With Order flow
trading strategies, you no longer observe the
markets from the outside, but from the inside
you look directly at the heart of the markets.
7Connect with us for more details
Website vtrender.com Email support_at_vtrender.com
Phone9284331270 Facebook https//www.facebook
.com/vtrender/ Twitter https//twitter.com/vtren
der/