Presentation – III
ORDERFLOW – GETTING THE TIMING RIGHT
By Dean
www.getthattradingedge.com
Disclaimer
• Information shared here is not a trading recommendation, and we are
not in a business of providing any.
• All information shared here is strictly for educational purposes only.
• Please use your discretion while acting on the information shared
here.
• We will not be responsible for any resulting profits or losses.
• Please consult your registered financial advisor before you make any
trading and investment decision.
Note
• In case of technical problems the webinar will be rescheduled at a
later date.
• Please post your questions in the chat window, I would cover them at
the end of the presentation if time permits, else they will be covered
in a separate QnA sessions for all the Slack Group Members.
• This webinar is being recorded and will be available for a limited
period of time on the Slack Group.
• Those who missed last webinars will get access to them on
www.belltpo.com.
Objective
• Identify where buyers or sellers might be accumulating or distributing
in the markets.
• Confirm opinions arrived at by using TTA or MP about the current
state of the markets.
• Finding good entry points to create positions in the markets.
What is Order Flow?
• It is the real time display of all the buy and sell orders at any given
point in time in the markets.
• Buyers bids for buying a instrument at a given price, whereas a seller
asks a price for that instrument.
• When these prices match we get a trade.
Definitions
• Ask Price – Price at which seller is ready to sell.
• Bid Price – Price at which buyer is ready to buy.
• Ask Volume – Volume traded at ask price.
• Bid Volume – Volume traded at bid price.
• Delta – Difference between buyer volume and seller volume.
How many types of orders are there?
• Broadly there are 3 types of orders that affect the order flow for any
instrument,
• Market Orders (Aggressive Orders)
• Limit Orders (Non-aggressive Orders)
• Passive Orders (Orders not yet in the market)
• It is the interaction of these order types which gives us a sense of
what market is trying to do.
8491
8492
8493
8494
8495
8496
8497
8498
8499
Passive Orders CMP
8500
8501
Limit Orders
8502
8503
8504
8505
8506
8507
8508
8509
8510
0 20 40 60 80 100 120
Timing The Trade Using OF
• First identify important support and resistances on the chart.
• Second identify the areas where smart money and not so smart
money might be present.
• Third identify where limit and stop loss orders might be residing.
• Try to think like smart money and develop a strategy to benefit from
the first three points.
Lets Go Shopping!!!
• Shopping for a tie, on the morning of an important meeting, in a new
city!!
• Shopping with your girlfriend in a MALL!!
• Shopping for a marriage of a family member!!
?? WHICH of the above is likely to take more time and money ??
And
?? WHY ??
Lets dive into some Examples….
now
Ideal Entry Points
• Using Delta Divergence to enter positions.
• But remember context is the key, without context you will driving
blind in the markets, FULL SPEED!!
Objective - Revisited
• Identify where buyers or sellers might be accumulating or distributing
in the markets – Context coupled with OFA observations.
• Confirm opinions arrived at by using TTA or MP about the current
state of the markets – Trapped Buyers and Sellers / Effort vs Results
• Finding good entry points to create positions in the markets – Using
Delta Divergences within Proper Context
Thank You
The next webinar in this series will be conducted on - 04/02/2017
From 10:00 to 12:00 in the Morning
INTEGRATION – COMBINING TRADITIONAL TA, MP AND
ORDERFLOW FOR BETTER RESULTS
