{"id":60032,"date":"2016-11-01T09:18:14","date_gmt":"2016-11-01T16:18:14","guid":{"rendered":"https:\/\/brookstradingcourse.com\/?p=60032"},"modified":"2025-01-26T22:32:45","modified_gmt":"2025-01-27T06:32:45","slug":"order-flow-support-price-action-trading","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/guest-traders\/order-flow-support-price-action-trading\/","title":{"rendered":"Order flow support for price action trading"},"content":{"rendered":"

Order flow trading — Video below<\/h2>\n

<\/h2>\n

Al Brooks’ trading room Q&A<\/h3>\n

\"Order<\/a>Order flow trading, in the guise of DOM (Depth of Market) trading, and the ubiquitous Time & Sales, has generated a number of questions over time in Al’s trading room.<\/p>\n

Al’s response is consistent with what you would expect: we do not need anything but the chart in front of us, along with price action to trade profitably. True of course. But some of us, self included, like to add a little complexity, and fun!, to our lives and order flow trading is one such activity!<\/p>\n

For an Ask Al blog post, a trader had asked Al if he used Time & Sales, and if so, is it any benefit. Al gave a definite NO! to using Time & Sales, which is absolutely correct. Time & Sales is useless, but that is only true for the typical data most traders pay for. Unless traders are prepared to pay for unfiltered tick data, giving us every tick (trade) that takes place, we cannot interpret and make use of order flow.<\/p>\n

See Al’s entertaining response here: Ask Al: Trading with Time & sales<\/a><\/p>\n

Time & Sales, the DOM, and order flow trading<\/h3>\n

To clarify differences between various terms banded about for ‘reading the tape’<\/em> as these practices are often called, I thought a presentation and demonstration video might help here. Al noted his Time & Sales answer might make me ‘mad’, given that I occasionally give Al examples of how this stuff helps a price action trader! So here it is.<\/p>\n

The Flipper \u2014 DOM trading the Eurex<\/h3>\n

If famous traders like Paul Rotter, ‘The Flipper’ can make money with order flow, it may be worth a look for others. But it needs to be said, that my use of order flow is secondary to price action, and acts as support. Some use enhanced DOMs only, scalping ticks from the market. Not my style, but maybe yours. As Paul Rotter has noted, even he moved away from pure DOM trading (after making $millions!) and now looks at technicals. We are not that different.<\/p>\n

Order flow support for price action trading<\/h3>\n