In my earliest couple years, I never truly understood order flow trading.
What opened my eyes to so much in trading order flow, was understanding the books.
So today I'll discuss how to read them.
Depth of Market 🧵 (1/13)
Here's what's discussed (separated for ease of reading)
Limit
- Where limit orders are stored (bids vs asks)
- How to read aggregated data (tick)
- High vs low liquidity
- Pull vs stack
- Spoof orders
- Ice berg orders
So many traders fail to find true edge in why they are executing their trades.
There are some key rules over the years that I've stuck with to identify when the markets direction may change so let's break down a few step by step ↓
Reversals 🧵 (1/12)
Here's all the topics I will be discussing
LTF reversals :
- Onside & offside traders
- Trapped traders
- Momentum fuelling
- Trapped value area
- Accelerating delta & time
- Spikes in order flow
- Absorption