www.orderflows.com/oft2.html
Replay of my training on how to Take Advantage Of Unusual Order Flow Activity.
To download my book, go to:
www.orderflows.com/book.html
Order flow doesn’t try to solve the market. It is used to help you understand how the market is acting right now and most of the time the market does what it is supposed to do - facilitate trade.
But what is most fascinating is when the market doesn’t do what it is supposed to do and exhibits unusual market activity - unusual to the uninformed trader.
Delta is the difference between aggressive buyers and aggressive sellers in a bar.
Delta is important so you know who is in control of the bar.
Point of Control in a bar is the price level with the most volume. Take the volume traded on the bid at a price and the volume traded on the offer at the same price in a bar and if that price level has the most volume it is your Point of Control.
No fancy mathematical formula to determine it other than simple arithmetic.
Market imbalances occur when there are more aggressive buyers than sellers or vice versa, more aggressive sellers than buyers in the 2 way auction.
A buying imbalance occurs when there is at least 4 times as many traders buying the offer than traders selling the bid.
A selling imbalance occurs when there is at least 4 times as many traders selling the bid than traders buying the offer.