Hello. After going through order flow trading posted here in few thread’s. I would like to know from trader’s in here, how do they use it. Regardless of the source where the Bids/Offers are derived. Does anyone in here trade them or take them into consideration in their trading ?
Thank you.
If you work for one of the biggest banks in the world you might know the flow of orders, but there are NOT order flow trading for retailers, period.
What you see in those threads is just “guessing” using info from IFR or Bloomberg about option barriers. Some of the levels and size of those options are public but a lot of them are hidden from traders.
And remember those options are place behind S/R levels so my advice is … do not waste your time with that kind of “trading” and focus in S/R and PA.
Hi, I am using it more and more.
How do I use it?
If everyone is buying, I buy. If everyone is selling I sell.
except where there is a definite trend, in which case, trade the way of the trend.
A good trader is a well-informed trader.
Trading the spot without knowledge about options, is not a wise decision.
Many retail traders are with market makers (even if you spend your time telling them to not do that). They can’t place transactions that do not involve the spread.
You can consider the order flow and barriers as part of your confluence factors in your daily trading decisions.
If you have your own DMA or share a good DMA then you can trade the order flow.
Front-runners, quote-matchers, parasitic trading, defensive trading and many more are possible strategies. They are probably not described at babypips but you can search the web.
I use order flow to identify key levels where there will be a larger than normal probability of price movement due to offers/bids from the professional money. I link this with different structures of how the price moves once it hits the larger flow to determine direction and trade entry.
I think there is a misunderstanding about the term “order flow”. Order flow trading is when you actually see or know the stack of orders in both sides and you position yourself to take advantage of those imbalances.
Option barrier trading is NOT order flow trading, at least at the retail level… you NEVER know all the options barriers (levels, size, maturity) in the market… and you NEVER know how well the options will be defended.
That is why in those threads about “order flow” usually the scammer wants you to believe that he has a insider in a huge bank, sovereign, hedge fund or macro fund that is giving away some kind of invaluable info.