Common misconceptions about order flow.
A thread 🧵 for traders looking to finally elevate their trading with as little trading blunders as possible
Misconception #1
That order flow is synonymous with volume.
It isn't.
Volume is just one element of the auction process.
Focusing on volume too much is quite detrimental because you miss other clues - the type of auction, price velocity, whether the move was sustained or not
Sep 14, 2022 • 6 tweets • 2 min read
Seeing some slow down in $CL #CL_F right at the site of the nearest weekly supply. Today is technically a responsive activity day (read: "boring" 😂) so some kind of a fade from this area has a higher probability of working out.
I am trying a short...
...although I'm mindful that this is a bit slow for a real Failed Auction opportunity, I'm still more comfortable being a seller around here
Sep 14, 2022 • 5 tweets • 2 min read
The moment you start trading using tools like #marketprofile#supplydemand zones, average ranges etc, you focus on market-generated information. Not a crystal 🔮
Order flow levels/mean averages are not MYTHICAL. They have a high probability of causing fast reversals.
If you've opened a 'with the trend trade' and price went immediately against you, it's likely that you've hit one of these ZOIs without knowing it.
Re-evaluate WHERE the trade went wrong and look at where the previous day volume value/tpo value was, whether you've hit ATR/ASR
Sep 13, 2022 • 6 tweets • 2 min read
5 bad habits that can ruin your trading performance:
1. Getting out of bed and IMMEDIATELY sitting down to trade.
However chirpy you may be in the morning, it's still always better to first get the blood moving, rehydrate, properly wake up and THEN start your market prep
2. Not feeding your body/brain properly 🧠
Eating junk & getting wasted with degenerate friends is fun, instant gratification but it negatively affects NGF (nerve growth factor) needed for neuroplasticity.
Fatty acid deficiency stops brain development. Now go get that sushi 🍣
Sep 7, 2022 • 14 tweets • 2 min read
HOW TO START USING MARKET PROFILE in your intraday trading:
Use only ONE session to calculate the value area. Not 24hrs, not several days, not mix-and-match other sessions
1/14
Read open sentiment correctly. Open sentiment == which direction price should take.
If there's a large gap at open, it's a sign that the market has gone too long or too short overnight. It rarely leads to continued strong trending moves. Unless you're trading equities.
2/14