Optimize your logistics sales order flow for maximum efficiency

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I've been an order flow Trader since I began my professional trading career back in 2003. in this video I'm going to explain exactly what order flow trading is we'll discuss the tools and indicators order flow Traders use what software you can use to trade order flow and at the end I'm going to share where you can get professional order flow training the best part it's free all of it literally everything you're going to need let's get into it order flow trading is a style of trading where edges are defined through the analysis of advertised orders and or executed orders order flow Traders look The Profit by capitalizing a market imbalances which will make more sense shortly this is my own definition for order flow trading it's become a buzzword online by all of the trading gurus yet nobody seems to understand or Define what it truly is there's two different forms of analysis when it comes to order flow trading on one end we have the analysis of executed orders and on the other end the analysis of advertised orders executed orders are trades that actually took place between a buyer and a seller whereas advertised also called resting orders are the resting bids and offers from buyers and sellers we use different tools and indicators to analyze the two different types of data which we will look at shortly as technology has advanced over the years so have the tools we use to analyze order flow let's take a brief look at the history of order flow trading as I think it will help drive home what order flow really is order flow trading began in the trading pits of the exchanges pit Traders would use hand signals in their voice thus the name open allcry to relay their orders to market makers I can still remember the day that I first stepped foot on the floor of the Chicago Board of Trade in 2002. I was a junior in college and the experience for me was absolutely electrifying and ultimately would set me on a path for the rest of my professional career in order to be a successful Trader in the pits you had to be an expert at reading the crowd and the moves of the large players all while keeping your cool and managing your emotions in a very chaotic environment pit Traders were literally in the heart of order flow the pulse of the crowd would drive the decision of locals to buy or sell as trading began to go electronic more and more volume left the floor of the exchanges the advancement of the algorithms were pretty much the final nail on the coffin for Floor Traders as volume dried up along with the new technology came an advancement in the tools that we used to analyze trade data one of the first major leaps was the introduction of level two quotes level two quotes had been around for decades but access to them wasn't simply a matter of going to a website and paying for data level two quotes display all the bits and offers for each price level from every ecn which stands for electronic communication Network I began my trading career as a level 2 Trader the level 2 became the heart of order flow trading similar to the traders in the pits signaling their bids and offers to the market maker it brought market demand and Supply to life when I first began trading that was enough of an edge on its own to make a lot of money however like all competitive Industries technology leads to Rapid advancement in the tools that we use in 2008 trading algorithms tipped the scales and began accounting for a majority of the daily trading volume this made it much more difficult to read a level 2 as orders were constantly pulled and added to the book relying on a level two solely as your Edge was becoming nearly impossible similar to The Floor Traders I had hit a point where I had to adapt and develop new edges or I would be looking for a new job at that point my career I began to study volume analysis in great depth which has all ultimately led to the strategies that I built and trade today just like any other competitive industry advancement is rapid if you want to make it long-term in this business you always have to be looking for ways to improve your Edge auction market theory is a core philosophy behind order flow trading auction market theory is a philosophy that financial markets move higher and lower due to imbalances between buyer and seller aggression caused by market events until price discovers a level where aggression is balanced and the most trade can be facilitated which we call Fair Value once you begin to incorporate AMT into your core principles and strategies you will begin to feel more empowered as a Trader I believe you become better at reacting to Market data and events rather than trying to predict them in the traditional technical sense the ultimate goal of any order flow strategy is to determine if the market is balanced the profit off of ranges or imbalance the profit off of Trends again this is done by focusing on the data generated from executed orders and or advertising orders let's take a look at some of the tools and indicators used to analyze the separate data types we'll start with advertised orders first we have a level 2 or depth of Market also called a dome we use a dome to analyze areas of high and low liquidity in a book and to evaluate the aggression of buyers and sellers this is what you would call reading the tape there's no shortcut to mastering reading the tape it takes experience which as a Trader means extensive screen time in time you will begin to notice how price moves through different levels of liquidity every instrument you trade will have different characteristics for example a high flying mean stock or volatile stock like Tesla will have different characteristics in a company like Microsoft next we have time and sales which lists every trade by its transaction time volume and price we use it to spot large orders engages speed and flow of the market similar to a level two or Dome it will take experience to learn how to read time and sales and every instrument will have its own unique characteristics third we have liquidity charts which display the advertised orders in a visual manner this liquidity chart comes from book Maps charting software which specializes in liquidity charts the goal of these charts is to help you interpret areas of high liquidity which will act as a resistance in low liquidity where price is likely to move through quickly we will discuss a number of platforms that have similar features shortly let's take a look at some of the indicators we use to interpret executed orders first on the list we have volume and volume profiles both indicators have been at the core of all of my strategies for the past decade I use volume and volume profiles to determine if the market is balanced or imbalanced the strength of a trend and defined potential high probability ability reversal points if you're new to order flow this is where I would focus your efforts to start next we have market profiles in the words of James Dalton the market profile is a unique charting tool that enables traders to observe the two-way auction process that drives all market movement the ebb and flow of price over time in a way that reveals patterns in herd Behavior I personally choose to use volume profiles solely yet we have some team members who are very successful that prefer market profiles I'd recommend you spend some time learning both of them third on the list is volume Delta volume Delta measures the difference between buying and selling pressure it's calculated by taking the difference of the volume that traded at the offer price and the volume that traded at the bid price cumulative volume Delta simply plots the Delta values for each interval on a graph Delta allows you to gauge the strength of a move by analyzing the aggression of buyers and sellers by their use of Market orders Delta is critical tool I use as a scalper but I believe it can be beneficial even to long-term Traders next let's take a look at some charting options that you should check out if you're interested in order flow there's four options I would recommend you check out and they all have demo products so make sure to test all of them there's a link in the description of this video to all of their websites motivewave is a platform that I've used for the past few years it's a great piece of software and I highly recommend them second we have Sierra charts I use Sierra for almost a decade of my career it's super lightweight and fast and robust as long as you don't mind their graphical user interface which is getting a little bit dated third is quantower personally I have only demoed their product yet I know a few traders who really like the software and then finally as mentioned earlier we have book map once again they all have demos so make sure to take the time to check them all out if you remember at the beginning of the video I said I would share with you where you can get free order flow training starting on September 22nd of this year 2023 I'm going to start working on and Publishing a comprehensive order flow course for YouTube 100 free no gimmicks no sales pitches I'm literally going to do a brain dump of the last 20 years of my life if you're on board help me out give this video a thumbs up and subscribe to the channel in doing so I promise to produce training that I'm completely confident will help you on your journey to becoming a successful day trader I hope you enjoyed this video and are excited for the training we'll see in the next video take care