#Orderflow is a buzz word in the industry today
And it should be.
It is an almost perfect tool to know real time demand and supply and to find places to enter and exit trades
Open Interest comes close, very close but it's issue is that it is not real time and has an inbuilt delay upto 3 minutes and more
This is not good for a fast moving market which can do upto 40 option points in a minute or 2 on most days these days. Most people who use Open Interest have adjusted to this reality (unfortunately)
When it came for us to know the pulse and real time demand and supply of the market and in absolute real time, we found nothing better than Orderflow
Our ideas were always focussed on knowing real time demand and supply - the volumes at the bid and the ask and the driver of those bids/ asks.
It told us what was happening with demand and supply at the very last tick which was traded on the exchange
And it could paint a beautiful symphony of what had happened with demand supply in any time frame of your choice.
But to those who were not ready to see the micro side of the market this way , it was a steep learning curve.
Imagine you are trained only to know that price , price, and price is everything and some one tells you - wait a minute - look at Volume also and then he tells you- wait another minute - look at inside the Volume ( the bid and ask) and you would be lost .
Most people are
Orderflow is complex to read.
You can get lost within the numbers and not know what to look for . There are so many numbers and you do not know what to do where. It's a maze
But once you go one layer down and start watching it with a "learned" perspective, it is a smart sure way of knowing what the market is doing and what is can do next. It's all in the Volume - of people who are committed and in the game!
Orderflow requires training! It's the same as you learning to drive, and everyone starts with a parent, a friend, a colleague or an instructor in the next seat. Try it by your self you open up to accidents!
Orderflow also requires a basic understanding of markets. You need to know market nuances and market structure.
Most of us who got good at Orderflow had a very good background in MarketProfile especially. I often see traders struggle with OrderFlow charts without this support.
Orderflow is Level 2 of MarketProfile/ Volume Profile
You need to be good at Level 1 to progress to Level 2.
You trying to read an Orderflow chart without knowing the MarketProfile is like a kid learning calculus and algebra without doing the math tables
The basics have to be clear.
I'm sorry - But yes there is work involved. Lots of work. And I will definitely not tell you it is easy. Markets were never made for people who came with "Oh it is easy here"
I did a small program for traders who were wanting to start off on the MarketProfile . This is up at -
youtu.be/UlMCvmw_Rlk. It's completely free and is only for people who want to know and grow
It's a start for you to build a foundation
The charts you need are at -
charts.vtrender.com.. We have free and premium versions. You choose a tier which works for you.
Embracing OrderFlow is not just about adopting a new tool; it's about evolving as a trader. It's about seeing the market through a lens that reveals not just movements but intentions, turning every decision from a guess into a calculated step.
#TradingEvolution #RealTimeInsight
I wish you well!