GOCHARTING
ORDER FLOW
TRADING COURSE
Lesson 5
Reading The Market With Order Flow
By: Michael Valtos
Orderflows.com
Order flow proves that the market is dynamic and in a constant
state of fluctuation between buyers and sellers.
The order flow chart is like the X-Ray chart a doctor looks at to
diagnose a patient and determine how to treat the patient.
Questions you should always be thinking about when looking at
an order flow chart:
Are we currently in a trading range?
Where are we in relation to the day’s high?
Where are we in relation to the day’s low?
Is more trading happening on the bid or offer?
Is the market moving on aggressive buying or selling?
Is price being rejected at current levels?
Are there price levels with heavy volume?
Is volume heavy or light?
Is delta positive or negative?
Are we trading above or below POC?
Chart 1
Chart 2
Chart 3
Chart 4
Chart 5
Chart 6
Chart 7
Chart 8
Chart 9
Chart 10
Chart 11
Chart 12
Chart 13
Chart 14
Chart 15
Chart 16
Chart 17
Chart 18
Chart 19
Chart 20
Questions you should always be thinking about when looking at
an order flow chart:
Are we currently in a trading range?
Where are we in relation to the day’s high?
Where are we in relation to the day’s low?
Is more trading happening on the bid or offer?
Is the market moving on aggressive buying or selling?
Is price being rejected at current levels?
Are there price levels with heavy volume?
Is volume heavy or light?
Is delta positive or negative?
Are we trading above or below POC?
Reading order flow comes down to common sense. It allows you to
gauge the current state of supply and demand.
Determine whether the market is being rejected by traders,
whether the market is being accumulated or distributed, whether
the market is being stopped with big volume by passive buyers or
sellers.
This concludes Lesson 5.
Understanding order flow is key to understanding the market. In
order to succeed as a trader, you must understand how the market
operates, how order flow data is generated, and how to leverage
this information to your advantage. Order flow data is extremely
important. Orders determine market prices and how they move.
Order flow analysis can help you uncover hidden trading
opportunities that other traders just don’t see.
