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Order Flow Scalping Guide

Order flow scalping is a short-term trading strategy that utilizes real-time market data to identify buyer-seller imbalances and capitalize on momentum bursts for quick profits. Essential tools include DOM, Footprint Chart, and Volume Delta, with a focus on precision and rapid exits. Key concepts involve order imbalances, absorption, and recognizing trapped traders, with practice exercises recommended for skill development.

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0% found this document useful (0 votes)
3K views2 pages

Order Flow Scalping Guide

Order flow scalping is a short-term trading strategy that utilizes real-time market data to identify buyer-seller imbalances and capitalize on momentum bursts for quick profits. Essential tools include DOM, Footprint Chart, and Volume Delta, with a focus on precision and rapid exits. Key concepts involve order imbalances, absorption, and recognizing trapped traders, with practice exercises recommended for skill development.

Uploaded by

weyzerogets
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Order Flow Scalping (Futures) - Beginner's Guide

What Is Order Flow Scalping?

Order flow scalping is a short-term trading strategy where traders use real-time market data to identify

imbalances between buyers and sellers. The goal is to enter trades during strong momentum bursts caused

by large orders and exit quickly with small profits.

Tools You Need

- DOM (Depth of Market): Shows live buy/sell orders.

- Footprint Chart: Displays volume traded at each price.

- Volume Delta: Shows the difference between aggressive buyers and sellers.

- Platform: Use Sierra Chart, Bookmap, Jigsaw, or NinjaTrader.

How It Works

You look for:

- Order Imbalances: e.g., more buyers than sellers.

- Absorption: Large passive orders absorbing trades.

- Trapped Traders: Buyers/sellers who enter at the wrong time.

- Volume Spikes: Sudden increase in executed orders.

Example Setup

Market: ES Futures (E-mini S&P 500)

1. DOM shows 400 contracts to buy at 5100, only 50 to sell above.

2. Volume delta shows +250; footprint shows buying at 5100.25.

Entry: Buy at 5100.50

Stop: 5099.75

Target: 5101.25

Exit Rules

- Exit if volume delta weakens or absorption appears.


Order Flow Scalping (Futures) - Beginner's Guide

- Take profit quickly (3-6 ticks).

- Use a stop-loss; scalping is about precision.

Key Concepts Simplified

Order Imbalance: More buyers or sellers.

Absorption: Big trader quietly fills orders.

Spoofing: Fake orders to mislead.

Trapped Traders: Entered at worst time, forced to exit.

Practice Exercise

1. Install Bookmap or Sierra Chart.

2. Watch ES or NQ market.

3. Spot imbalances, delta spikes, footprint patterns.

4. Paper trade your entries and exits.

Summary

- Scalp fast moves based on real-time pressure.

- Use DOM, Footprint, and Delta.

- Best markets: ES, NQ, CL.

- Focus on quick profits with small risk.

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