This is a recording of our recent Order Flow Bootcamp, where we gave you an introduction to the art of Order Flow - the single most important set of data used by professional day traders. As so many people are jumping on the bandwaggon with Order Flow, we take you back to the basics we've been teaching since 2011. The REALITY of Order Flow, how to learn and what the pitfalls are:
As you'll see, the reason that Order Flow traders are so successful is mostly one of perspective. Mature traders know that the most important consideration in the markets is cause & effect.
They look for causes – like traders trapped, that have an effect – like a stop run. Causes are generally small and effects are large – When traders are trapped – you can see the precise location they are trapped – the exact prices. When they stop out – that’s an extended move. So small, precise stops and larger relative targets. Good Risk:Reward on the trades.