Order Flow Archives • Futures Day Trading Strategies

Posts Tagged Under: Order Flow

Best Order Flow Indicators To Spot Buying and Selling Pressure in Futures Markets


This article on Best Order Flow Indicators is the opinion of Optimus Futures.

Best Order Flow Indicators

  • What Indicators should you consider when reading Order Flow? 
  • How do you identify the big player’s trades? 
  • How to add VWAP to your market analysis 
When we trade a financial asset, we often rely on charts to identify market opportunities. We identify patterns that might give us a better sense as to where price might be heading. Our charts are like “maps,” indicating potential headwinds, tailwinds, critical levels, and turning points.

On every chart, price and time tend to be the dominant features. Indicators, though important, are variable and supplemental. Although “volume” is sometimes treated as just another “indicator,” what many traders miss is that the combination of price, time, and volume

Read More

Filter Trade Setups by Combining Support and Resistance with Order Flow


This article on Support And Resistance Order Flow is the opinion of Optimus Futures.

All technical traders are familiar with horizontal support and resistance levels in the market formed by prior occasions of price bouncing off of certain price levels. They are a foundational construct of technical analysis, and rather simple to spot and apply on charts. The simplicity that comes with dragging across a horizontal line on a chart is also what makes these levels so popular and widely followed by traders.

In this article, we will discuss how support and resistance levels can help you better filter trade setups when you combine them with order flow dynamics.

First – Let’s Talk Liquidity

Ideally, a nice mix of buyers and sellers are needed to make a market liquid, which prints on the chart as normally sized candlesticks either moving in a pattern or sideways. But occasionally the market will spring out of

Read More

Deciphering Order Flow – Understanding The Mechanism That Moves Price


To understand the mechanism that moves the price up or down we have to learn the interplay between the Depth of Market on one side and Market Orders on the other hand. This interplay is the Order Flow. We used SierraChart Trading Platform for the illustration.

The Current Price is the last price in which a trade took place. This last trade could have taken place either at the Best Bid Price or at the Best Ask Price. Those two terms will make sense in a minute once we understand what the Depth of Market is.

The Depth of Market is the total Size of limit buy or sell orders that are placed at each price. It is often called Liquidity, Limit Orders, Passive Orders or The Book. Take a look at figure #1.

Order Flow Figure #1:  The Emini-S&P500 DOM ( Sierra Chart charting and trading platform.)

Read More

Sentiment analysis in the Head and Shoulders pattern


Being able to read mass psychology and the orderflow of buyers and sellers in chart patterns will give you an edge when it comes to understanding the sentiment that is behind the price movements. The Head and Shoulders pattern is a commonly used chart pattern and understanding how and why it is being formed on your charts can help you understand market sentiment much better.


It all starts with Highs and Lows

Before getting into the nitty-gritty, we have to establish a basic understanding of market structure. The Head and Shoulders pattern is so powerful because it visualizes market structure better than any other pattern.

Although it sounds very basic, the way highs and lows form on your charts tells you almost everything you need to know. Highs and lows define the markets and price patterns, charting techniques; and most price analysis concepts are built on the analysis of highs and lows.


Read More