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.