What’s up traders anthony cardella here and thank you for tuning in to the futures, radio, show podcast trading the indices using order flow. Today we have some of my favorites from twitter on the show horseloverfan e? S leo book of job at futures, trader 71 joining me to discuss trading the indices using order flow. This podcast is sponsored by edgeclear. Edgeclear was designed by traders for traders. They are a forward-thinking broker, earning a reputation for unbeatable service. When you join edgeclear you’ll be assigned, a personal broker will get you set up, assess your needs and costs and will hopefully help you save. Edgeclear is currently offering futures radio show listeners, 69 commissions for most products and 20 cent commissions for the micro indices, go to edgeclear? Com, slash deli and click an open account at the top of the page and sign up with the code deli edge, all right everybody. Let me bring everybody in here. What a full crew we’ve got. Let me just get everybody full screen here, and i think i have everybody here. Look at this crew. What’s up everybody? what’s up how’s it going thanks for having us on yeah! thank you?
I am so excited about this. You know i get a lot of emails about shows that people are like anthony. Do a show on this. Do a show on that, and this is one that has probably been on my list uh for i i couldn’t tell you how long many months, probably even over a year of people, saying anthony talk to some of these traders about trading using order flow and today we’re going to focus on the indices and how you guys use order flow to trade. The indices, and i think the first thing that i just really want to discuss, because i think it’s obviously important is just to talk about why order flow, and i actually want to start with uh so job and leo you guys are actually um from order flow labs! You guys are creators uh of this right, so i’m actually gonna start with you guys and horse um, i’m a fan of of what you do and you’re a big fan of of order flow labs horse, and i know that um you talk about uh using order flow, a lot on twitter and also with trader aid um, so you’re a user and a fan of it, but i’m gonna start with the creators, uh and i’ll actually start with you, joe, because you’re right right next to me why order flow for trading, futures trading, the indices? okay, so um order flow to me has has two different components: um, it’s it’s what’s occurring right now, it’s the uh! it’s the activity at the party and the people that are getting out of hand or the quiet, and then it’s the breadcrumbs that have been left over from what has occurred, and so why order flow uh! For me, it keeps it very straightforward and simple.
I reduce my variables when i’m looking at the action in the market itself, keeping it very baseline to volume the speed of the volume, the actual uh participants on either side of the coin that are that are at hand and that that speaks to me when we come into a key zone of interest and allows me to to not only keep a tight risk management but engage or decide whether or not it’s it’s uh. You know going to be fruitful to engage, and so that’s what order flow does for me leo um.
From my perspective, um, i i definitely include everything job would say and and in addition to that, i would say from an execution standpoint order flow can help. You decide whether to get into an area um, whether you have you know, support or resistance right!
It can help you make that decision versus just taking a trade blindly right if you’re coming up to a level of support or resistance, um or a rebid area, and you don’t see the activity on the order flow, the time and sales, and things like that that you want to see! Then that’s a clear indication that it’s not time to take that trade yet right, so it can help give that confidence to either take the trade or stay out of a trade and then, while you’re in a trade um, you know monitoring that activity to make sure that you’re, seeing what you want to see to keep you in the trade right um?
I think one of the one of the challenges that lots of traders have is. You know once you’re in the trade you’re cutting too early um. You know maybe you’re not taking your your position to full targets, and so you can utilize order flow to see that activity that you’re. Looking for, if you’re long, you want to see aggressive buying, and you want to see the continuation of that so understanding how to visualize that or how to see that can help you. You know stay in some of those trades where you know, maybe sometimes you would just cut it because you’re itching to take profit. I love that leo. I mean you talk about using it to help you get in and talk about using it to keep you in a trade horse.
I want to hear from you now. Why do you like order flow? so much so i i guess truth be told i’ve kind of always struggled with the term because it is kind of ambiguous. But for me i guess the way i would define it is order flow to me is the study of everything inside of a candlestick and somebody that came from sort of classic technical analysis, trading, candlesticks, uh, the order flow labs, guys and some other traders. I have a lot of respect for so to open my eyes to appearing underneath the surface! What’s everything that’s happening inside that candlestick there’s a lot of meaningful information that the candlestick doesn’t give you such as aggression, absorption, uh, iceberging, uh, all sorts of things that we can see when we peer a little bit deeper. So to me, that’s what it is, and i would echo what job and leo said not only useful for for entries and confirming your bias. But for me the biggest game changer has been like, like leo, was saying, staying in a trade knowing when to get out knowing when a reaction is likely based on what has happened, uh and what is happening right now?
So for me, it’s really about trading reaction to reaction and being able to see the actual flow of orders. You know not not just the futures, but also in the options and what that implies for for dealer positioning? All of that is meaningful, real time information for any sort of day trader. I love how you said what’s happening inside of a candle, because really, when you look at order flow, that’s really the original way that futures traders traded.
You know i! I was able to see that firsthand from being in the pitch just watching what the brokers were doing is all we did was stare at the brokers right. If the brokers were buying, you had a choice: either you make a market for a broker a little bit wider right, because if they’re buying you’re going to be selling or you try to go with what the brokers are doing because that’s where the order flow is coming in and morad, you know, you’ve been you’ve been around a long time, and i know that you talk about using order flow? You talk about using volume profile market profile! Why do you think that order flow is such an important tool for day traders? i mean it was covered pretty well by by horse and uh and the ufl guys already, but there’s a there’s a caveat to order flow that i’ve seen over the years, especially from the risk management at a brokerage side, where a lot of times people get an order flow tool and they suddenly forget their plan and become scalpers. You know they’re just looking for constant feedback and signals. One of the key components that was mentioned by job here, which really needs to be reiterated, is uh in leo as well?
Is you have to have a plan? you have to have a reason to enter the trade, and that has to come from outside of order flow! Unless you want to be an order flow scalper, you know, you’re looking for the market to move to a certain area where you think you know the supply might come in and then you turn to your order flow for me personally. The order flow is for the specific purpose of getting me. The best risk reward entry and trade management. I don’t want to get out of a trade just because it kind of moved against me a little bit if the order flow continues in my favor! I want to stay in it so anything that i can use to visualize. This fact um helps uh? A lot of people will do the homework get in and then they’re they’re out really quick, because it didn’t go in their direction!
Well, if the order flow supports the fact that you know the the the work is being done, you know there’s still somebody kind of hitting the bid quietly or whatever and you’re short you want to kind of it helps you stay in it.
So don’t forget that you know you have to have a plan, then look at the order flow to um to really fine-tune the entry and and to protect your position.
You know i think, back to my career at the beginning, and i talked about how order flow really is. I think the it is the original way that that traders traded futures, obviously before the screen and even the the beginning of the screen, when i first used to do it, i’m embarrassed to say how i used to test order flow was, i would buy an offer or sell a bin. I try to take out the whole offer a bid and just see what was there and, if all of a sudden they would refresh him and come against me, then i would know that’s the direction of the order flow.
Obviously, that’s changed right uh, you know, um the sensitivity of the market is what really, what told me uh what the order flow was because i didn’t have the tools that we have today job? I want to go back to you and leo because you guys have are creators of a tool that help you see that right in front of you. I know we’re going to go to the charts in a little bit later, but i just want to talk about for you guys sitting behind the scenes and creating something visually to help the traders. What is it that there that you’re, actually, you guys, were trying to achieve and show us uh to show what direction the order flow is actually coming from we’ll start with you job yeah, so um had the uh an excellent opportunity yesterday to speak with another um trader who uh spent all of her career in the in the pit and we’re discussing uh. You know aspects that are utilized from my end and um. You know volume profile for structure the actual live, uh builds of the volume and then utilizing your dom time. Sales to to gauge the interest and so forth and what was cool about uh the stories and that and the things back and forth, which you’re probably going to be able to relate, is that um.
You know she made reference to the fact that there were times when the volume of the of the entire area would decrease, and then it would increase and the the audible sound of the room and so forth and, as things got more exciting and going that activity coming in and out was was visually and audibly. You were so you were in the mix and can see that those changes and fluctuations now, obviously i i was not there um and so with what we have designed and uh and built we’re working to to display that um in me in a meaningful manner, um uh to show that that that interest as it’s as it’s either dwindling or it’s increasing, accelerating and so um. So back to what what um? what uh moore mentioned? uh, you have to have a plan you got to have some strike, i always say: structure precedes execution and um, and so against key levels of of interest that you have when you get there. If it starts to get quiet and nothing in in even the price action is dwindling and slowing, and then all of a sudden the noise starts you can. You can assume that whoever’s taking the ball is then going to run with it, and so we have different ma different sequences that we’ve uh put together from the subset of information we utilize in order to visually display that leo you want to talk a little bit more about that yeah.
So um we really came together to um! You know, ofol wasn’t really started out of like a vision of hey. We we want to go. You know, make this thing and let other people use it? Necessarily. It was the four of us and then five of us um, you know, found four of us found a coder right, because we wanted to code certain things um that we noticed as far as patterns pattern recognition! You know things like that, so, instead of staring at a footprint all day um we can convert that into you, know kind of what our execution chart would look like. So we just essentially started working with a coder to say: hey, can you do this? can you make this happen? can you make this happen, and then we just reiterated it on that reiterate on that and then essentially we ended up with somewhere we’re at about 20 different. You know studies essentially um [music] that help for our own personal training. You know identify key inflection points in order flow, so spotting absorption uh spotting the increase in speed? That job was mentioning from a time and sales standpoint so that you don’t have to have all of these things.
You know sitting in front of you. You know all the time um you know. So that’s really where we started. You know kind of our starting point? Was we actually just wanted uh help to visualize? all of that on one one chart versus you know five or six, because everyone most people trading order flow are gonna. Have you know, footprint volume, profile, time and sales, dom um all of these tools and we’re just taking all that information and trying to display that in a more simplistic fashion? i love that i want to go back to horse because horse you’re, not one of the creators of this you’re, a user of it and you’ve developed your own style and strategy for your trading. How do you use order flow to help you become a better trader and also talk about any additional technical analysis that you use prior to getting to the point where you’re actually sitting back and saying the this order flow is actually very useful in this situation.
Yeah, it’s a great question, so i i was trading! Probably more classical techniques still do like the opening range, i’m a huge proponent of some of those old pit strategies that are still around today, because they work where the order flow part came in, and i never really labeled myself an order flow trader. I just sort of always taking in new information and before i knew it, i was really drawn to some of the work and tools that job and leo and fleury and the ofl team created because it was helping when you use it in addition to some of the classic strategies, helping to either confirm that bias or have a better understanding of the strength of your position right because we’re either we’re either in a trade, because we want it to go up or we want it to go down.
It’s it’s! It’s uh. You know one of two directions and i think for them with their tools where it helped me was!
I also view order flow, not just as what’s happening right now, but also the flow of desired orders is important to me as well. So folks that follow my work, understand that i do value the resting limit order book.
I want to see where larger players want to transact, so a good example of where their tools and where order flow in general is helpful. For me, if i catch say a classical trade setup like an opening range breakout say it’s on the downside, if i’m short, the opening range lows- and i see aggressive selling- that information within the candle right and they are aggressively selling towards pools of liquidity, waiting down below that’s very powerful information right.
It’s all about probabilities.
That puts me in a place where i’m more comfortable, because you can see the aggression coming through real time. That’s the actual order flow from the sellers! You can see the liquidity waiting below. All of that should give you the confidence to stay in that trade, something that leo emphasized earlier and that futures trader emphasizes well uh!
So it’s confirmation for me on top of existing more classical strategies, it’s sort of a hybrid of both. I would not consider myself a scalper traditionally, but i think once i discovered what they were able to do with things like delta by price, which was a real eye opener. For me, that was a game changer right, really understanding aggression and who who’s the dominant player in the session, the buyers or the sellers?
Where are they most dominant at uh? where are they trying to push price towards? all of this is useful information, essentially to confirm a directional bias!
Intraday a couple things come to my mind, we’re going to go back to you more ed and you- and i have talked about a lot of these things- i’m going to talk about right now, number one! this is the this is why execution’s so important and listening to these guys and how they use order flow, something that i’ve always talked about is watch the reaction to your level. Your level itself does not matter. It’s the reaction to your level that matters and horse talked about the inside of a candle what’s happening there! If we get to support- and you saw something- accelerate um there, instead of just saying: oh, it hit your support and it bounced off. You actually have something behind it and i think it makes you a better trader right. I mean because the strategy from what i’m hearing from these guys is that that’s important right, but now you’ve got to find and dig deep and say how do i become a better executor of my strategy and it sounds to me like this- is what order flow is doing. You’ve been talking about training people for many years about this, expand on this a little bit so um. The the issue for people is that you know guys will go and they’ll read books and they’ll pay for courses and they’ll pay for indicators and whatnot, but the the issue is always execution like we did a whole year. I think about it, yeah emphasizing execution, because that’s where the rubber hits the road and no matter what you do um, that is always the hang up for people is yeah? You know my plan was right if only i would have held or if only i had, executed and trusted my plan? That’s always the problem, and you notice that in simulation, people do much better in execution because they don’t have any skin in the game than they do live and in general. What you have to have in place to overcome execution issues is a is just really strong confidence, barring that you have to have very a very specific indication of when to enter the market and when to sit on your hands?
Hopefully you’re, sitting on your hands a lot more than entering the market, but you know things that help you in that. You know i use volume profiling? I use the volume delta. I use various order flow tools, um, i’m playing with the order flow labs, um tool set here, uh that horse has been using for a while, and these are things that help you it’s kind of like those people who have a plan, but then wait for some sort of a moving average crossover to enter right. It’s just an assist to um to execution and really you can have the greatest plan in the world! But if you don’t execute- and you don’t follow the trade management, it means diddly?
Squat you’re going to be left in the dust you’re, probably going to be left with losses um, and so this is the last piece like once you’ve figured out your edge, your software, your broker, your this, your risk parameters, all that stuff, it all whittles down it distills to executing and then letting go of the mouse? You know presetting your risk and so on letting go of the mouse and letting the market tell you if you’re, right or wrong in that on that particular um. Specific trade order flow is just a way of providing that extra point of confidence to just do it just just take take the risk, i mean it’s, it’s a flip of a coin on every trade? So if, if that’s what it takes and everybody has to find what that is for themselves, i want to go back to horse for a second because horse? Take me through a situation where you have an area you really like right! I don’t know what technical tools or whatever it is! You’ve come to derive to this area!
You’re, like look, i love this area and the s p and it gets there and, let’s just say it’s a long right, a market that’s been going down and you come in and you see they just been.
They just jam right through that area. You’re, like man, the order flow’s going the exact opposite, but everything i have here is telling me on my other research that this is a really good level? What do you do? well, i think that’s the that’s the power building on what futures trader was just talking about? Sometimes you have to abandon whatever. That bias is that you have because the real time flow of orders is not confirming what your plan was. So i think good traders are willing to abandon great plans. You know and depending on the information that’s coming in, you have to be willing to adjust. Is the reason to hold on to your thesis or is what you’re seeing flow through in real time from the the standpoint of aggression or implied options, uh hedging with what it’s forcing the dealers to do! Um? do those things line up with your thesis or do you have good real good reason to cut that and wait and sit on your hands for more confirmation of a better time to enter? you know in your particular example: they’re waiting for that right long. Do i see that the buyers are in control? do i have the flow of orders on my side? it’s really a probability thing if i can tip it in the scale 51 over time, you’re going to be successful right. So it’s just well! If you can master the the execution part that futures trader was just talking about. But the point is it: do you have the tailwind at your back right and i think sometimes you have to be willing to face the facts that the the flow of orders are not confirming what you were waiting for, and you have to ditch that that that’s just me yeah, that’s the one thing i talk about uh when you see people say be patient, wait for your areas to get there. Sometimes we get to an area where you just been waiting and waiting and waiting and in the back of your mind, you’re like wow, i finally get this area and you buy them, and they just do something like that and they just blow right through it, and then you have to be really impatient to just get out of it because you have to be in the now.
I think that’s the one thing i really like about order flow is, it keeps me present as to what’s happening right now. It doesn’t really matter what i thought could happen at this area. This is what’s happening at this exact moment and i think we’ve all talked about this.
This is what really, i think separates those that are just making a little bit of money as a trader, just kind of going by to actually becoming a good trader and, and that comes through with their execution, what they’re doing in those moments? uh is what really matters. I want to go around the horn here in a little bit or right now i should say- and i want to talk we’ll actually stay with you horse and we’ll go back around this year, has been a pretty crazy year.
Right um talk about some of the common things that you’ve been seeing this year with order flow. That’s a good question um! i think i don’t know how deep or technical you you want to get, but uh one of the things that i’ve been writing quite a bit about on our trader with trader aide website is order. Flow has been able to help me see. For example, over the past several weeks we we actually have been seeing from an aggression standpoint, pretty aggressive, buying from buyers but they’re not being rewarded for that buying. So i think order flow, it’s easy for us to get pigeonholed into just thinking about this from a day trading perspective, because that’s what i think all of us do on this on this stream, but it’s also beneficial?
I think if you are a swing trader as well, to peer inside the candlestick for a little bit more information as to maybe helping us explain why we’re having this grind down you’re, seeing aggressive buying you’re, not seeing a good classic flush that you would like to see from somebody who’s looking to buy the dip or build a swing position there. The buyers have maintained their their aggression at almost every single day, and you see that through the delta, you see that through the prints, the larger delta prints the areas where they’re iceberging they are buying into some of this weakness, but not getting rewarded for that? So you want to talk about what’s different this year, the versus previous years take last year, for example, totally different story. When the buyers were in control, they were getting rewarded for that activity made for fantastic longs throughout the whole year. The last couple years. That is something distinctly different that we’re seeing in 2022 that i think order flow enables us to be able to see. Is that there’s there’s quite a battle here and you’re, seeing prices drift down because there’s no payoff for their aggression uh, so i think it kind of gives perspective if you’re somebody that’s looking for a bottom, which i would i would never advise, trying to call one of those you’re seeing why you’re not getting a clean one speak right, because you have aggressive buying day after day after day, and it’s just a slow grind down.
I think, if you’re somebody who is interested in calling bottoms, you need to wait to see that stop the aggressive, buying, stop and see a true flush before you can have a real momentum shift in the market. That’s just one example of what we’re seeing the question was: what are we seeing this year? that’s something that order flow has specifically helped me observe over the past few weeks that the dynamic is a little bit different?
It’s not your typical fear, uh panic, ridden crash. There is still quite a bit of aggressive buying yeah. I know that’s why i asked this question? I’m curious what you guys are seeing we’re gonna switch it up a little bit instead of going to job! First we’re gonna go back to leo first leo.
What are some of the things you’re seeing uh this year, man uh horse totally uh stole my line because [laughter] one of the key observations, especially um like if you look at last wednesday, where we just kind of drifted down all day they were buying. There was aggressive, uh offers being lifted the entire way down, and it was just like we would have um! You know the market would kind of impulse move down.
We would consolidate, there would be uh tons of offers being lifted, indicating there are buyers there trying to you, know to lift the market out and not get in anywhere, and then they would flush again and then it would kind of do the same pattern over and over, and that happened all day, and you know on these trend day down these trend days, where we’ve just kind of um, you know, drifted down!
It’s been a lot of that um and, and so it’s been very, very controlled um like horse mentioned, i haven’t really seen any panic um! You know that that we’ve seen previously um so so that would be my key takeaway as well.
I don’t know that um, you know, have any other uh key lessons for this year! Common things i mean uh yeah, it’s just aggressive buyers, not not really getting anywhere joe. What have you been seeing? well with the ex with the expansion of ranges? um, probably one of my favorite things, uh, we’ll we’ll probably see some of that on the chart today is that uh is that at the edges, when you have a lot of absorption on one side and and that that multiple time where they’re pushing back push back um the the efficacy of stop run, reversals is at like an all-time high. You know, and and it’s one of my favorite things uh- you know being able to to swiftly push through a zone of absorption to hit some of that get some of the hidden liquidity underneath of it and then have that have other participants step in upon that return and accelerate away because you’ve cleaned out inventory and in wide ranges like that now you’re in a now you’re in a really cool zone to be able to sit and allow that to build to the opposite end of the range which which has been so wide!
It’s very it’s a very comfortable type of return and um, and so that’s stop run reversal. Activity in areas of high absorption has been really what i’ve been keying on ft.
What about you? um, i’m in line the other thing i’m observing is that there’s an awful lot of icebergs these last few weeks i mean we’re hitting zones that are like the 39. 50 here.
In the s p, i mean every 50 zone.
Basically every 10 10 uh 10 point handle? We seem to be seeing a whole lot of icebergs and just like job just said, you know you get this iceberg coming in and it’s selling 5000 or whatever, and it’s very algorithmic and it rips through and you’re thinking, wow. That was a big collision.
They took all that out. There’s a lot of demand and the next thing you know it’s ripping the other way.
So it’s kind of cleaning out all these all these large orders and reversing, which is just terrible for breakout or momentum type uh traders you’re also seeing a lot of tweezer, tops v bottoms. These are very sharp reversals. You know going up going up strong on an impulse and then impulsing, like you, know, a 90 retracement? If you were fibbing a move like is very common now you’re like or a hundred percent uh we’re seeing a lot of that, and what that’s telling me is that the higher time frame or there’s big positioning, whether it’s hedging speculation, whatever it is- maybe spreads options versus futures options or futures versus etfs or whatever there’s a lot of activity.
So i’m seeing a lot of whip song. In fact, i’ve gotten whipsawed quite a bit, and i talk about that in my morning. Trader bites every day that yesterday you know the plan was on point, but i lost money because it’s just like i’m just on the wrongs. I find myself on the wrong side, given the the way i’m i’m trading and it’s because the order flows, just changing dramatically, uh and and buyers are not getting paid and sellers there’s, there’s, there’s not uh!
The follow-through on the sell side is pretty good, but it can come come back in the afternoon pretty strong, like we saw on friday, yeah it’s it’s been a year that we have not seen this type of year in a long time, and people continue to ask me: have you ever seen anything like this and i always say it’s never exactly the same, but i’m definitely seeing some things that you know that are really. I don’t need to be told that this is a bear market from what i see in the action you know everybody keeps talking about it. Are we going to be down 20 uh on the s p, to prove it’s in a bear market? for me, i, when i see this type of action, and i’m just talking about in general, where i see just these moves that are just you know. It frustrates both sides that to me is very indicative of bear market type action, because really, i think especially right now. What i’m saying is is just no one’s really in control.
You’ve got a lot of weak hands and i think when it comes to the order flow, i just see a lot of weak hands if something doesn’t go right away, they’re, turning on it right and then all of a sudden they’re. Turning back and you’re like well, maybe now they’re going to be good and then all of a sudden it fades again and it just that’s something i have had uh trouble with is trying to hold winners. When you see some of the responses that you want, you hear job and leo and and horse and uft talk about that is like oh you’re, seeing the response you want and then all of a sudden it just comes right back. You know the the long’s just not getting what they wanted, even though you’re like they did buy them they’re pretty good there, but we’re right back to where we were um? So don’t be stubborn, but we’re gonna.
Take a 30 second break. When we come back morin and edge, clear are going to give away some really good prizes.
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How do you drink water on a break like that with uranus [laughter]? no water there’s only there’s a couple: half bottles of wine off to the side, but it’s difficult. The question is going to take a swig digitally ft? This is the best prizes that we’ve given away. You know i talk about this.
We’ve been giving stuff away every month on the live stream!
This week’s live stream is i i can’t tell you how many people were like man?
This is a great giveaway ft. What are we giving away to the three winners? so, first of all, we’ve had some issues with the picker wheel code.
It wouldn’t expand, but there are a ton of um of uh entries, i think close to 600 or so uh. But what we’re giving away this week is uh three subscriptions to edge pro x, which is the full featured active trader, um trading platform built on motive wave uh? It’s what i use to execute with we’re giving three subscriptions for six months. Those subscriptions are worth 35 dollars per subscription per month, uh. In addition to that, because we believe that the best data out there is from rhythmic full mbo data will cover the twenty dollars per month? Access fee, not um the data itself, not the cme fees or whatever uh we’ll cover the access fee, which is twenty dollars a month uh. So it’s basically 55 a month that we’re covering for three traders for six months! In addition to that order, flow labs kicked in two uh. Is it three subscriptions for three subscriptions to their full suite uh for two months uh for for the for those winners? what we’re gonna do today is we’re gonna pick six winners, because uh people become unresponsive or whatever.
So we have three winners. Three runners up we’ll try to do this as quickly as we can? Here we go we’re going to spin for the first, so we’re picking the first winners and the three runners up.
You have, i think, two weeks to respond?
Oh a paisant one, do you know nice man right horse? it’s not! i love it. We need more italians in this business yeah. That’s that’s a really italian name, all right marin, dole and then the third winner is charlie! That’s my dad’s name and my brother’s name and my best friend’s name and his dad’s name, there’s a lot of chucks in my family wow.
So those are the three winners!
Again, you have a limited period of time to respond. You’ll be uh you’ll, be contacted by an edge, clear broker to get you going!
These are the runners up j, j g v n, so these are the reserves so to speak. If we don’t uh, hear from you in time, then we will reach out to the reserves! Tarbog, it’s uh familiar with him and then last one jay very descriptive, just jay.
So, okay, everybody. We are at the charts now and one of the things that i have been most excited about with having this crew here today is their favorite trade setup because, let’s face it, it all comes down to? How do we get better at trading? and how can we make money right and i love seeing other traders favorite trade setups. I think we’ll start at the top of the order. Again, we got job right below me and we’ll work our way down! So what are we seeing here in front of us more ed and then joe walk us through your favorite trade setup uh? so what we’re seeing here is edge pro x, the platform we’re giving three uh subscription for for six months, we’re seeing it running on rhythmic! As you can see there, you could see the mbo data. I can see, there’s a block of about 140 contracts sitting at this price! That’s why i prefer rhythmic it’s very fast, and it gives you those details! Your order flow details very, very complementary to the platform this page here this particular chart was created just for the ofl team uh it has their indicator, set their indicator suite, which you’re giving two months away for for those winners, uh these arrows and so on!
My approach is really different, but let’s uh, let’s jump over to job and go over what you would want us to observe on this chart, yeah absolutely so. What we’re looking at here is a combination of the triangles and dots are working in tandem with each other, showing exhaustion and absorption okay and so in those zones, and we’ve kind of mentioned this earlier, the stop run reversal type activity.
What we’re seeing is the attempt to absorb in that zone met with an initiative move out of it, and so, when that’s occurring we’re looking at the pace and the type of volume that’s coming into that area, and so when a certain threshold is exceeded and flipped, then we’re able to see that see that print now you can watch this occur on your dom as well. You know you mentioned the orders sitting there with the mbo data as well, seeing who’s refilling and replacing their orders and and patiently just kind of taking taking the hit!
Well, it’s it’s when they begin to step above and um and drive into um into the offer itself that these uh, the the efficacy um of this bi, which we call the ead the exhaustion absorption detector pushes away from that zone. Same same with the cell side, i would say my my most favorite types of uh positioning out of this is, if you look to the left, the the first uh red print there, as you came in clearly into one of your structural zones, um, is that we had a bit of a build in the previous consolidation there that when we push back above it, you have a very swift move into your into your into your zone of structure, and then it’s met with that exhaustion initiation away. One thing i look for primarily along with that is, i want to see this occur into a volume taper volume to me tells me whether or not there’s interest- and we mentioned about in the pits when things get loud, that’s showing you there’s interest in certain certain levels and zones, and so when you have, when you have a move like this, that’s absorbing and initiating out of especially a low volume area um, it’s it’s! it’s going to be pushing back towards the area of interest or the high volume and looking for that to rotate to the opposite side? So this here being that push above the prior high consolidation, there is, is one thing that i’m looking for that i like to that! I like to position in on um. Obviously, we use different structural components to find our levels, but that’s very clean. So what you’re saying here is we came up to the high here. This was the high for the day session!
The overnight high is higher consolidation. We pull back to v web and then we made a pretty strong run and you’re looking for it to take out that high and get exhausted uh at this level and then you’re. Looking for this clean rotation back right, correct, because that that little, that meandering off of the previous consolidation, where it melted down before it was bid um that there leaves so much stagnant, uh inventory above, and so you have in that consolidation? You’ve just got a lot of comfortable um positioning with uh? You know with with stop placement simply just above, and so as that comes up and flips that then, if it’s, if it pushes that high and stays it settles, then your building blowing refining interest, but that swift return back shows you that that that move was accelerated through stops and the interest did not follow into it and that’s where then, you begin to target back to the opposite? End of the auction? This diamond right here is: is signifying um, a collision of some sort right, like uh size, sitting there and is getting hammered on and getting absorbed right, correct, okay, so in that the immediate response is, you would expect once that’s done, you expect it to kind of go off and run off in the distance and what you’re really looking for is this kind of fatigue once it takes it out, it almost like expends all of its energy on the way up and you’re?
Looking for this fatigue for the rotation back down, would you have been so you’re you’re really looking for the break higher to fail and for it to start to rotate over? what would be? how would you hone in on the entry point for this setup so for the setup? are you able to draw a volume profile from that swing low to the left? yes, where is it which one this one just uh the ultimate low there to the left, the lowest low right there? oh yeah sure that works and then drag it all the way out to the ed there perfect, and so what you can see here is is a is a clean, um upper distribution in the lower down below, and then you have that low volume zone in between. So, if you look at where that consolidation is or the the one that we i was describing pushing the stops, what you have above it is, is you have a small build with a uh with a low volume node. What i like to do here is when i see that little notch, as soon as it comes back into the low volume area, is to grab it in that zone, because now my wrist is going to be on the opposite, high volume edge, so the underneath the underneath of that little blip above so right here, correct okay, that you have to be very fast for that right. You have to be really on point yeah. It takes a lot. It takes a risk entry correct.
It takes practice, uh getting comfortable watching the volume builds as they occur, but this is one thing i’ll be that i do on a on a on a daily basis is make sure that, from a recent lower, so forth, i’ll draw a profile in the direction of the movement to.
Let me know where we can be revisiting where that interest lies or doesn’t, and then you can see with the tools there when that activity occurs. Now, i’m going to let that come back into the low volume zone, try to get to the high volume edge of the prior build and when it does so forth, i’m expecting it to return to the lower portion of that of that high volume node? The way i visualize the auction occurring around a high volume node is simply like an is like an electron rotating around an atom, and so, if it escapes the nucleus, then it’s out of the valence and it’s attracted to another nucleus, and so that can happen very swiftly, but as it’s in the valence, it needs to be attracted circling around that zone, so this is occurring in rotations all day, long and um, just how i visualize the high volume nodes in relationship to the low volume areas. Needless to say, job has a phd in nuclear physics. That was a very very scientific and precise description.
Uh really interesting uh? For me personally, this is the the levels you see here are conversion trading stock zones? These are? This is homework that i do every night that’s disseminated, uh on a cloud server on an um on a cloud server to all members. These show up to the members and are updated during the session. Sometimes this level here that you see that’s kind of a lavender color! This is the key over under this is based on the last few days trading or whatever the structure is, i’m looking for the market to fight this level, uh generally um! Generally, i’m looking for the market to fail from that level on on on the first test, and that may, or very often is the top.
The over under is very often the top of the session if it breaks through, it sets up an additional trade which i’ll go over so before i even saw this uh the tools that ofl um has uh very generously put on my uh edge pro x here, um, i already taught you know i was.
I talked within convergent trading about this this level here that it’s likely to see a stall and- and we got just that- look trust me- they don’t all work as perfectly as this.
So i i hate to tell you that this is how it is all the time, but the expectation is we’re likely to stall out we’re likely to auction lower looking for those buyers and that’s what we did here! We pulled all the way back.
There’s no trade for me um once it pulls back and it starts to push back up that trade is done. It’s a very short term trade. It’s you know in this case it’s good for about 10 12 points once you get in and get out, but the better trade is, when the surprise happens, and it does break and for me, even though the indicators uh that ofl uses are indicating, there’s there’s an absorption here. The trade is right here, this pullback, you know we failed. At this level we made a lower high, we put in a higher low.
We would expect we would expect the market to continue to fail lower. I expect the tape to be quite heavy, and i expect those who are hitting the bid to get go a long way to be able to move price quite easily to the short side to the sell side, but in this case we put in a higher low. So we anticipate another run at that level, and we got it here. You know chop chop chop it breaks through the the the trade i’m looking for now to really catch the shorts that absorbed down here up here is this pullback to the prior level.
This happens very, very momentarily, but it’s a pretty low risk, high return trade for me uh and then i’m looking forward to move to the next stock zone, so i’m trading from zone to zone to zone, and this presented itself as an additional spot to get long into the 3968? The target for today is the 3980 really uh is is key up there, we’ve stopped short of it. If you recall two days ago, we got as high as 80 50 or something like that um, and so the market is stalling out. Where do we go from here? i expect this for the rest of the session to just dilly dally around this area? You can see there’s a lot of volume in the middle see how fat this is.
When we look at the volume profile, it’s showing us what’s happening inside of the bar. This is really important about volume!
Profiling is you’re, seeing the inside of the bar and then the order flow are actually the little building blocks that make up the volume profile. So when we look at these tools, when we look at order flow, uh, you’re really looking just like job described you’re looking at the nuclear level of what’s going at the fight, that’s going on that generates the volume that ultimately creates your bar. You know open high low close and the volume that goes with it, but also the volume profile then also captures what the volume is at each price to show you where the auction took place and where the fight happened here, we’re likely to just chop around until the fomc minutes this afternoon! We’re expecting a key release here and then from there we’ll get new information in terms of um. In terms of new order flow as the market repositions, so i just wanted to ask you guys with ofl: what is this market efficiency? can you describe what this is telling me down here? yes, so essentially, the market efficiency is measuring a few things from the footprint chart and we’re looking at a 1300 volume footprint chart. So it’s a constant volume analysis and we’re essentially monitoring how efficient the buyers or sellers are in the market and how uh quote unquote hard that they’re having to hit the bid or hit the offer or lift the offer to get price to move right, and so what you have at the bottom here is a histogram! The green essentially would be the how efficient buyers are being and then the red or orange how efficient sellers are being and then the swings, the orange line and the blue line shows you how much how efficient buyers or sellers had to be from the previous swing higher low right, and so we’re essentially showing you that you know. In the last the last time we set a high that sellers had to be almost at peak efficiency around that 32 mark or that 34 mark um to put that high in right? So they’re working really really hard um. You know they’re they’re really having to hit the bid hard to get price to move, and then you know you see that offer um or you know, buyer side by side um to that previous low. If you go back to that lower blue line, where we just set that little low, um so buyers, this is a really paramount um setup in the market, efficiency where buyers are really rested, right, they’re, not very aggressive. At this point we see we’ve had a pullback um, you know sellers aren’t really doing much, and so they come from the state? And so we look for that. Buyer efficiency to cross that previous swing point so now, they’ve crossed their efficiency point, and then we have that ead print! You know just above you and that would give you an opportunity to look for a long um. You know to rotate. You know toward that that um, the other uh high volume node um, but as we built and we kind of rotated up through there, you can see how buyers didn’t really do much after that they just we made an impulsive move, um you know and they and then sellers really stepped up um. You know kind of fought out in this area leo!
This is the area we’re speaking of just to make sure we don’t lose everybody, so we could see, buyers came in they’re they’re, getting the job done, they’re, pushing they’re, squeezing they’re squeezing, and then they kind of peter out and then nothing’s going on beyond there right yeah, and so you see the sellers really stepping up here as well on the market efficiency, and so this is really a fight right. So and we expect that right because we’re at two we’re kind of in between two distributions on the volume profile, there’s a little um.
You know before this was totally built out here.
There was a you know: there’s still a little bit of an ldn uh between that high volume know the two high volume nodes in this profile, and so you know you can you can assume that sellers are going to want to try to defend um, that little lvn pocket um? and then you know that protect um, the highs, you know from being to run. You know, protect the highest from being run um from buyers, and so this is one of those things where it’s it’s you know it’s helping you stay in that trade or or helping you stay out of a trade um. You know once you once you get up into that that lvn area um they’re, just you know it’s just kind of a it’s a lot. It’s a lot noisy right like if you look at the market, efficiency, there’s really no clear story, um being told other than it’s just a big battle? So do you want to get involved in a big battle? i don’t um, you know what would it look like if the market is hammering down, we’ve got volume hitting the bid and they’re getting price movement lower or horse.
I you’ve seen a lot of these as well. What would that look like? would we see a spike higher in the red on the market efficiency or what would that look like? we would see a spike higher in the market, efficiency from the sellers and then buyers. Probably you know the buyers would be stepping away, and so you would see a huge spike in that in that red market efficiency line! Okay, uh horse. Do you use this in any uh different way, since you’re kind of day in day out trading with this tool yeah, i actually uh, don’t use the market efficiency as much? I appreciate the explanation there, since i’m still learning myself but some of their other tools uh that they provide, including the ead the exhaustion detector on the screen?
They have another one called the dominator that i absolutely love uh. If you’re. The original question i think from from anthony, was favorite trade setups uh. For me, i think my current favorite setup that could be drawn here on this chart is um. The opening range, the 30 minute opening range uh low to mid trade, is my new favorite trade setup and big shout out to one of our trader aid members that did some data analysis to uh help bring this trade to light. But essentially you would take today’s opening range with the high being at 39 56 75 yep, right up where you’re at below 39 21 50. I believe it was what i would be looking for in the combination of this classical tool, like the opening range with more modern order! Flow tools would be a punch below that opening range low right. So if they punch uh below that 2150 level, there’s a little high volume, node spike there, you’re gonna blow like joe, was saying most likely blow!
Quite a few stops out of the water, so i would be looking for on a five minute! Candlestick chart the price to close to push at least two points below the opening range low, you’d love, ideally to see some exhaustion detection from one of the order flow labs tools to see to show that uh. You know you’re likely going to get a reaction uh and then, if price creeps back up inside the opening range low, 2150, there’s an 88 chance that it’s going to go back to the opening range mid, which is at 39? 39 and that’s based on data pull from all of 2021, so high probability, trade setup, especially on a day like today, where what leo was pointing out! You know you have quite a bit of volume built in this particular area. Quite a bit of iceberging at 39.
50. The likelihood of returning to 39. 50 is very high, so that’s a trade setup that would really get my attention? Otherwise i wouldn’t be interested, like you were saying, futures trader and much of anything right here because to me the value area- and i know i’m weird like this- but the value area- to me for a day’s session.
It represents essentially all the same price! There is no difference to me uh when we’re trading in the value area? The price is all the same. It’s the market has deemed it fair value to me, so i’m not interested in initiating a position within the value area! If i can avoid it? I’d rather do something closer to one of the tapers like job was mentioning when we’re getting into an area where you’re likely to see a reaction, so that trade setup, if it presented itself, would be something i’d, be looking for.
A punch below the opening range low, an exhaust, some sign of exhaustion or buyers, stepping in becoming more aggressive and then once it crossed back above. The opening range low you’ve got an 88 chance based on historical data that you’re going to run back to 39? . So that’s a little intraday scalp trade after that there’s a 50 57 chance that it continues back to the opening range high. So i look at everything from probabilities and the order flow tools help confirm that this is an entry i’d want to take if you’re still seeing the opening range low lost with aggressive selling. I i would not be as keen to enter that particular trade setup.
So that’s where the order flow stuff comes into play!
Are they still hammering it? are the buyers becoming more aggressive? then you’re gonna wait, but to me i think, that’s one of my absolutely favorite new trade setups! That’s just recently become?
You know a standard in my toolbox that combines classical opening range breakout strategy with some order flow to confirm the entry is. Is the probabilities are in your favor when you enter okay? so quick recap, i think we’re out of time right, uh, anthony yeah, i’m gonna do a quick recap and then there’s a bunch of questions. I’m gonna try and go through a few of them quickly for everybody. So for this trade setup the opening swing the way you’re defining it or the opening range is the first half hour high low.
You find the mid of that which will be around 39 or so you’re?
Looking for the market to come down to 21. 75, which is the rth low swing, low and you’re. Looking forward to breakthrough blow stops out exhaust meaning sellers, just kind of run out of momentum and you’re looking for a to buy it back into the opening range mid um on the turn? Uh, that’s the setup there and, if it, if it, if it uh, does not peter out, then it has a 50. I think you mentioned a 55 probability? Historical probability again. Past performance is not indicative of future results. Correct back back to the to the 56 up here, um, that’s, that’s the the scalp setup correct. So the way i would trade, that is, my core position of the trade would be off near the mid. Usually a couple points below it just to be safe because i want to get filled. Sometimes they go punch it and go back down, but the core is off at the mid, and then you leave your runners to for that 57 percent chance that you return back to the high fair, okay, great yeah, i’m gonna go to just uh! Thank you guys so much for all the time you guys put into those that’s very interesting to me, and i appreciate i always love seeing how traders how they look at the market.
I think that was the one thing i took from both job and leo and horse and uft is you visually have to see these things and with the tools that they provided? it helps you see the market. You know the way that you see the market and that’s very important for quick uh good decision making and i want to go to the audience now. We got a bunch of questions from chat and i appreciate everybody always uh sending their putting their questions in so i’m gonna go through uh a bunch of these uh we’re gonna try to go through them, pretty quick, because we’ve run a little bit along on time. So i’ll choose one of the order flow guys for this one or you guys could decide. This is from dan trader!
So jobber leo. I think answer this one. I would like the concept of the best ways to discern if absorption and distribution is occurring at key levels, job leo absolutely um? I would like the concept of the best ways to discern absorption. How far are they getting to their effort and so price price movement? so um as you come into a key level and you’re watching the volume exchange the best way to discern it is going to be on your dom, and so, if you have, for instance, if we’re pushing down into a level that you’re looking to bid if they’re pushing into that zone and you’re you’re, seeing a um and i say, zone because we’re not looking to the tick but a a small spread. If you’re, seeing the order step back in and and take on any selling into that zone, not allowing price to to actually give them um any uh any benefit to their effort, then the the best way i look at this is is um is to then see how quickly or how soon uh or how long it takes for those orders.
To then step up a couple ticks and start to push back and so um uh horse was talking about liking, uh, the resting limit, orders and um, and that’s something that you know i pay pay attention to.
As we get to a zone, it doesn’t have to be an outlier but um, but even like i’ve been trading a lot of nq.
Lately you see lots of our uh.
You see blocks of um 10 to 12 15 and, as they get filled, do they replace and so best way to um determine if it’s absorption um, that’s that’s what it would be and distribution um the same thing on the other side of that so on the short time frame as a trader absorption, something that’s absolute key concept to understand, going into any given day, uh we’ll get to you for the next or not for the next order flow question leo? So don’t worry about. I’m gonna go to horse on this one, this one’s from aaron question: if stalking a trade. What are you looking for in the order flow that makes you trigger a trade and to lean on for placing a stop? that’s a good question. I mean there’s probably a lot of different answers to that! For me, i think one of the biggest indicators would simply be delta by price to understand, potentially one of the one of the classic order flow trade setups that i learned from job and leo that’s been absolutely instrumental as uh the trap trader, the offsides trader, somebody who maybe sells absolutely aggressively into the the absolute lows of the day? We know just from watching that action over time that those folks tend to get pushed against after making such an aggressive move. So that’s a trade stock and to use your vernacular that i would be looking for? If you are trying to find an intraday low or reversal point, you could use something like delta by price to see. Did somebody just puke, for example, you know 2500 contracts into the absolute bottom tick of the day today, there’s a pretty good chance. Buyers are going to push against that trader in the short term. If you’re a scalper that you could take advantage of that and then place your stop back below that level, where they initially, you know puked into the lows of the day!
So if they’re going to put in a new low, you get stopped out, but otherwise those usually make pretty decent reversals, both on the the long and short side. If you see somebody aggressively offsides, you know looking at a volume profile, you have nice clean tapers at the top and the bottom. If somebody makes an overly aggressive move comparatively to what you know, the orders that have been transacted in the session so far, those are pretty good indicators that you’re going to get a short-term momentum shift, and you can hide your stop behind that level! I’m going to go to leo on this one.
This is from alfred how to avoid fake out signals from order flow and how to gauge timing for a reversal, um fake out signals are going to happen, um just as a means of trading order flow. I think that’s, not anything that you can avoid. You know you um one of the uh? Obviously, one of the biggest challenges with trading order flow like you’re staring at the dom and the time and sales, and you see um the setup that you’re looking for you get in, and you know immediately? You know the the the picture kind of changes right away and um. You know, there’s really nothing that you can do about that. It’s just a matter of you know when you’re that dialed in to you know bid stacking uh on the dom um offers pulling and then, as soon as you get in, you know your your entry, you know is basically like at that. Almost at that point is when you know that the offer stacks back on right, like sellers, get back on the offer and- and you just kind of have to take your hit and get out- and you know that’s just part of trading um, so i don’t know that there’s necessarily any clear cut way to avoid a fake out signal?
I think it’s just you know that’s kind of what comes along with trading order flow, um and then, as far as gauging timing for a reversal, i think that reversals are more of a pattern? Recognition, um thing where you can, the more that you see them. Um happen over over and over and over you’ll start to instinctively know that hey? That was a reversal right um. So when you see um, say you’re in a trade like you’re in a long um you get faked out, you get stopped out, and then you see the activity that you would normally see on the dom that that indicates, there’s actually a reversal there. Then you know that’s that’s a clear way for you just to get back in like you entered you got faked out and then at the same time like at that, fake out was actually just a reversal right like a stop, run reversal, and so you can use that pattern, recognition to get back into that trade that you were originally in um?
You know that you kind of got faked out on the first one. So reversals are for me just very, very pattern: recognition oriented it’s something that once you see them over and over and over um on the dom, just by reading the dom the time and sales and and really the price action, um you’ll, you’ll kind of just instinctively know um, you know after you’ve spent you know time on the screen uh watching that activity. I’d just like to add to that. If that’s okay leo, i also think it’s important to consider order any order flow indicator tool in the context of uh! You know sort of the broader market performance?
These things should not just be viewed in a in a vacuum right. So even if you get a really aggressive print, you say you have a down day, even if you get a really aggressive exhaustion print, if you’re three percent down on the the s p, 500 or the nasdaq, the odds of that reversal really having meaningful legs are very, very low? Historically, so you have to take everything into consideration with the broader picture that tools and indicators are there to help you. But yes, there will be fake. You know signals or failed reversals from time to time it’s important to look at the the broader performance before you sort of make a judgment on that yeah and those are signals themselves right right right when you see aggressive buyers just getting run over. That’s that’s a strong, like yeah, very important point to make there i’m glad you made that point horse and we’re gonna go back to you for this next question is longtime listener. First time caller from pablo says, could you explain why a resting limit order um in a market that prints a thousand lots per minute? basically, i think he’s asking: why does why does a resting order matter when there’s just so much volume throughout the day? yeah, it’s a really good question.
I think you have to understand! There’s different participants in the market that have different strategies. You have a lot of algorithmic strategies that are that are transacting very close to the the bid ask right: a lot of liquidity, providing algorithms, usually on es, that’s two and a half points plus or minus from current price! They have strategies based on you know, making and taking that are going to be completely separate from longer duration, players, larger institutional uh participants. So i i think that it’s hard to understand because you’re right, the volume on es, for example, is staggering.
Why does a thousand resting lots really matter? well, there’s different strategies being executed from different players and they’re all doing it in the same playing field. So it matters to me because those players move the markets, and i don’t so if somebody is raising their hand that they want to transact a thousand lots! You know 10 points below where we are right! Now, i’m very conscious of that right! That’s that’s tough! for me, i think about it like which which direction is the water flowing? i don’t want to be swimming against the current in my trading right and that’s just additional information!
Does it always mean that we’re going to go down 10 points to fill that? no, but it means the odds are against you right. Somebody is raising their hand, saying i’d like to transact down here, for whatever reason, whether it’s hedging short covering actual position initiation- i don’t know the reasoning, i don’t really care? I just know that it’s tradable information that i should be aware of as a day trader, so that would be my answer to your question. Please remember: there’s lots of strategies happening in the marketplace from algorithmic traders and large institutional players well said horse.
I’m gonna go back to job for this one. This is from taj singh. I like this question as a chart pattern breakout day trader, that’s trying to add order for my tool, kit, i’m suffering from information overload! I think we talked a lot about this today, but job help him uh understand how to just you know not have that information overload, just how you could use this as an effective tool.
Absolutely i talk with this to our members. Often it’s. If you have a bunch of sexy looking tools and you slap on your chart, then you’re increasing your variables and so do a piece by piece with with each piece that you add, you need to be able to master and understand it in and out. We discussed uh like the ead that was on the chart earlier, and there were a few referred to as few failed signals and um, and so what we’re seeing there? the concept behind that is, somebody was stepping in in order to try to in order to try to position and if they’re wrong.
That’s just as important as being right, because, if they’re wrong and they get pushed out of position, they accelerate to the other side, all right and so those types of things um understanding the concepts behind what you’re, using and so uh?
If you’re, adding piece by piece and not a and not um in one in one stent multiplying your variables utilized ten fold, then you’re going to be better off in general!
So if you’re a pattern, recognition, trader and you’re visualizing a pattern, and during that pattern you have exhaustion absorption or initiation from a zone that you’ve been interested in. It just increases your probability of move, guys we’re going to end it there i’m going to go around the table, real, quick and have you guys give that last little bit a piece of advice, because a lot of these questions are very similar in this, because we talked so much today about trading the indices using order flow.
What is one little bit of information or advice, you’d like to give the traders before we let you go we’ll start with more red um. It goes back to the basics, uh, basically having a plan that you believe in we could talk order flow. We could talk indicators and fibs and whatnot, but if you don’t have a high level of confidence in the plan or your view on the market, then you’re you’re, going to trade randomly and and that’s very hard to troubleshoot so start with the basics and just like job said, it’s kind of like add variables. Add indicators add things that help you to do it better. Uh, don’t try to do everything at once.
Don’t try to be an expert on everything. Just be keep it. You start slow start with a clean chart, learn that and then add piece by piece. This is really key to get the most out of your time as a trader horse.
Yeah, that’s excellent advice there. I think for me, uh!
The biggest piece of advice i could get, especially in these current markets is just the value of staying modern? It’s one of the things i really appreciate about the ofl guys and what’s attracted me to their using their tool set, is pushing the limits of what can be done with uh some, some really powerful market information from different participants, uh, so stay modern! The only real edge to me is the ability to adapt. If you, if you’re gonna, stay stagnant in your trading, that’s essentially the same thing as falling behind over time, because the market changes dynamics, changes, strategies, change if you’re struggling right now, use it as a time to learn and absorb and give that you know research things that maybe you’ve had doubts about, or questions about in the past, it’s it’s okay to swipe and incorporate into your own style that matches your own personality and risk profile. But to me the the biggest advice is always stay, curious and be learning.
So if you’re struggling right now, hang up the dom for a while and study? It’s a great time to do that because there’s no doubt these markets are wild yeah!
I love that horse leo leo’s on mute.
There we go um. The big thing for me is to keep it simple. So you know we have water flow labs has 20 something you know: tools or indicators and um? You know if you come sign up today. You’re gonna have access to all of them right away and the problem with that is, you know: you’ll see uh people post charts with their setups, and you know the way that they view the market, and you know you get some of that chart envy right! Like oh man, look at that. I really want to get that? You know what are your settings? you know tell me about this and that and i think really what you need to do, whether it’s our tools or someone else’s tools, it doesn’t matter, is you know, get it down to the most basic level of information. You know, like future trader 71 says you know, stick with the basics and then build from there right. I do a lot of you know i’ll, add something to what i’m looking at on a daily basis and then i’ll be like it really didn’t. Help me make a decision right. So the key criteria for me is if it’s on my chart, it’s going to help me, make a decision and execute on a trade. If it doesn’t do that, it goes off of the chart and so i’ll add things to my charts i’ll, take them off my charts and- and i’m constantly doing that- and i think that goes to horse’s point of you know be a student of the market. Can you know consistently right stay? modern, um? don’t just get you know stagnant with what you look at, but have a have a a core foundation in the way you trade, in the way that you view the market so that that core foundation doesn’t change, but maybe some things that you do look at can change from time to time based on the market regime or how the market is trading or whatnot, love that leo joe, we started with you we’re going to end with you all right.
I think these guys covered a lot of key things, and so the only thing i really want to say- and i say this um repetitively, especially with no fl structure- precedes execution. Well, however, you define your structural levels zones of interest that should precede your execution. So when you get there order flow’s going to tell you and help guide you how to execute and when to and so um be patient, let it get to your key zones and then in the middle, don’t play with it guys. This was awesome? I’ve been looking forward to an order flow show for so long and you guys just killed it! I learned a ton today.
I appreciate all of you guys. You guys know how much i enjoy chatting with all of you guys. Um and all i can say is thank you very much. I will say all the audience out there?
Thank you so much for your participation. Without you guys, coming in and joining in this, this show doesn’t exist. So i appreciate you uh coming in and sending us the questions? These guys are great. Follow them on twitter? All of their links are down below um. This will be recorded on video and audio uh, and i hope you guys enjoyed today’s show as much as i did joe bleo horse ft. Thank you guys. You guys are awesome, cheers thanks. Everyone cheers all right, everybody! that’s a wrap for today i’ll see you guys next week, trey wells see you thank you for listening to futures radio show if you enjoyed the show.
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