Orderflows 5.

0 User Guide

Enhanced Orderflows Sequencing – Until Tested.

Orderflows 5.0 User Guide

Enhanced Value Area - Until Tested.

When virgin value areas are retested, they have a tendency to hold and act as support or
resistance.
Orderflows 5.0 User Guide

Value Area Until Tested.

NEW UPGRADE

Knowing a value area that the

market never tested and traded
away from but is now coming back
to is very important and represents
great buying or selling
opportunities.
Orderflows 5.0 User Guide

Enhanced Value Area - Until Tested.

Orderflows 5.0 User Guide

Enhanced Inverse Imbalance – Until Tested.

See where trapped traders existed on the chart. These are areas where traders were looking for a
breakout that never came. Now the market is coming back. Will the breakout happen 2nd time
around.
Orderflows 5.0 User Guide

Inverse Imbalance Until Tested.

NEW FEATURE

Inverse Imbalances are a sign of

trapped traders where were
looking for a breakout that never
happened. It is important to watch
how the market reacts when the
market returns to the trap level.
Orderflows 5.0 User Guide

Enhanced Inverse Imbalance – Until Tested.

Orderflows 5.0 User Guide

Tick Aggregation.

Needed when trading extremely volatile markets that have wide ranges due to minimum tick size. It
is hard to fit a footprint on a chart when a market covers a lot of ground due to small tick size. By
aggregating ticks, you can have easier to manage increments.
Orderflows 5.0 User Guide

Ladder content

NEW

Tick Aggregation

You can bunch price levels

together. For example, if you trade
NQ, set this to 4 to make the chart
have 1-point intervals instead of
tick intervals. Needed for analyzing
cryptocurrencies which trade in
$0.000001 increments. Then set to
1000.
Orderflows 5.0 User Guide

Tick Aggregation.
Orderflows 5.0 User Guide

Shorten Big Numbers.

Useful when trading stocks and cryptocurrencies where you see big volumes or big notional values.
It makes the chart easier to read by shortening the big numbers into something more manageable.
Instead of seeing volume of 117,829 shares it will show as 117.8K.
Orderflows 5.0 User Guide

Ladder content

NEW

Shorten Big Numbers

Allows you to take big volume

numbers and represent them in K
or M. For example, instead of a
volume of 47,511, it would show as
47.5K. Instead of 1,109,289 it
would show as 1.1M. This is useful
when analyzing cryptocurrencies
or markets in notional value.
Orderflows 5.0 User Guide

Shorten Big Numbers.

Orderflows 5.0 User Guide

Now on to the existing tools of the earlier versions of Orderflows Trader that are still available in
Orderflows Trader 5.0.

Keep in mind, while there are a lot of features to use and choose from, you will not use all of them at
the same time. As you dive deeper into order flow you begin the recognize which tools/features work
best for your style of trading and fit into your trading plan.
Orderflows 5.0 User Guide

Market Sweep Detector –big traders do buy or sell through several price levels at once to fill their
order. This is an aggressive trading action and can lead to continuation in the market.

A stacked imbalance is often the result of a market sweep.

But a market sweep doesn’t always result in a stacked imbalance.

Often precedes a stacked imbalances or appears in bars where there is no stacked imbalance.

Default sweep levels is 3. In thinner traded markets such as NQ & YM, you might consider expanding
the sweep levels to cover more levels, for example 5 or 7 depending on volatility.

Default threshold (volume) is set to 10. If you trade markets with small liquidity such as NQ or YM
you will want to adjust it lower, for example 3 or 5. If you trade markets with very deep liquidity such
as ES or ZB you can adjust it higher, for example 20. You don’t want to make it too high though.
Orderflows 5.0 User Guide

Market Sweep Detector

Detects potential market sweep

activity across several price levels.

Sweep levels can be user adjusted

based on how many levels you
want to see swept. This is a
minimum amount of levels.

Sweep threshold is the maximum

volume in the counter trade in the
two-way auction for a sweep to
occur. For less liquid markets use
a smaller number.
Orderflows 5.0 User Guide

Market Sweep Detector - Bullish

Dark Green shows

the market sweep.

Lighter Green shows

the stacked imbalance.
Dark Green shows
the market sweep.
 Orderflows 5.0 User Guide
Dark Red shows the
Market Sweep Detector - Bearish
market sweep.

Dark Red shows the Lighter Red shows the

market sweep. stacked imbalance.
Orderflows 5.0 User Guide

Market Weakness Detector - Signals when order flow is exhibiting weaking on a

move up (bearish sign) or weaking on a move down (bullish sign).
Orderflows 5.0 User Guide

Market Weakness Detector

User can adjust over how many

bars to look for weakness. 3 is
what I use. 2 would give you more
signals. 4 would give you less
signals. You can’t set it to 1.
Orderflows 5.0 User Guide

Market Weakness Detector - Bullish

Orderflows 5.0 User Guide

Market Weakness Detector - Bearish

Orderflows 5.0 User Guide

Orderflows Sequencing - Highlights aggressive traders getting past larger and larger bids or offers
in the order book.

Good to see bearish sequencing at swing highs as sellers take out stacked bids.
Good to see bullish sequencing at swing lows as buyers take out stacked offers.

If you are long and you see bearish sequencing, consider getting out before your stop.
If you are short and you see bullish sequencing, consider getting out before your stop.

If you are long and you see bullish sequencing, consider squeezing more out of the trade.
If you are short and you see bearish sequencing, consider squeezing more out of the trade.
Orderflows 5.0 User Guide

Orderflows Sequencing

User can adjust the minimum

sequencing sequence. 5 is strong.
3 is weak and should be
considered the minimum.
Orderflows 5.0 User Guide

Orderflows Sequencing

Bearish Sequencing

Bullish Sequencing
Orderflows 5.0 User Guide

POC Slingshot - A POC (Point of Control) trade setup.

Will color the bar POC GREEN for a bullish sign.

Will color the bar POC RED for a bearish sign.

A POC Slingshot can occur in a bar with a Prominent POC, but it is rare. If it does occur, the colors
for the POC Slingshot will appear.

When a POC Slingshot occurs in a bar with another order flow setup pay very close attention.
Orderflows 5.0 User Guide

POC Slingshot – NEW

User can choose to either enable

or not enable the slingshot.
Orderflows 5.0 User Guide

POC Slingshot - Bullish

Orderflows 5.0 User Guide

POC Slingshot - Bearish

Orderflows 5.0 User Guide

Value Area is the area in a bar where 70% (user adjusted) of the volume traded. Plotting the value
area will give you 2 additional data points – the value area high and the value area low. The bar’s
POC is still the POC and will be inside the value area..

The value area is the grey area on the footprint chart.

If you are trading a thin market, for example a 1-minute ZN (10-Year Note Futures) which often print
a bar that is just the bid and ask, then the value area isn’t going to be much use since the market
may have traded only one or two price levels.

The strength in using the value is in bars that have activity which is most markets because you can
see if value is moving higher or lower. Where price is trading relative to value. Where the market is
going relative to value.
Orderflows 5.0 User Guide

Value Area

Show the value area in a bar.

EVA

Highlight bullish and bearish value

areas.
Orderflows 5.0 User Guide

Value Area example. Every bar has a value area.

Orderflows 5.0 User Guide

Value Area – EVA is a value area pattern that highlights bullish and bearish value areas on the chart.

If the current value area is bullish, the chart will print the current value area in blue.

If the current value area is bearish, the chart will print the current value area in red.
Orderflows 5.0 User Guide

EVA

Highlight bullish and bearish value

areas.

The only settings a trader can

adjust is the colors. The
calculations of the indicator are
already hard coded and not
subject to user adjustment.
Orderflows 5.0 User Guide

Value Area – EVA Bullish has a blue value area

Orderflows 5.0 User Guide

Value Area – EVA Bearish has a red value area

Orderflows 5.0 User Guide

Inverse Imbalance occurs when there is a stacked imbalance that runs contrary to the “norms.”

Normally you expect to see a stacked buying imbalance in a green up candle. But what does it
mean when there is a stacked buying imbalance in a down red candle? That is a bearish sign
because aggressive buyers ran into solid sellers and couldn’t move the market any higher and price
action reversed.

Normally you expect to see a stacked selling imbalance in a red down candle. But when there is a
stacked selling imbalance in a green up candle that is a bullish sign. Sellers aggressive tried to sell
the market lower but ran out of ammunition and the market didn’t agree with the sellers as price
action reversed and closed higher. There was no follow through.

A bullish inverse imbalance will print a blue zone on the footprint chart.
A bearish inverse imbalance will print a red zone on the footprint chart.
Orderflows 5.0 User Guide

Volume Imbalance

Inverse Imbalance

Highlight bullish and bearish

imbalance areas.
Orderflows 5.0 User Guide

Inverse Imbalance - Bullish

Orderflows 5.0 User Guide

Inverse Imbalance - Bearish

Orderflows 5.0 User Guide

Delta Divergence

Occurs when the market makes a

new or equal high on negative
delta or makes a new or equal low
on positive delta.

A reversal signal.

More effective when used with

Orderflows Ratio.
Orderflows 5.0 User Guide – Delta Divergence

An Orderflows Delta Divergence occurs when the market makes a new or equal high on negative
delta or makes a new or equal low on positive delta and is confirmed with the price action of the
bar which is the difference between the Orderflows Trader and other software. The Orderflows
Trader also looks at the price action that caused the delta divergence. A delta divergence is a
reversal signal, but if the price action in a bar does not exhibit reversal price action, the reversal
has a higher chance of failing.
Orderflows 5.0 User Guide – Delta Divergence Bullish

Here is a bullish delta divergence.

Notice the previous bar made a new low
and had positive delta. By plain
standards technically that is a
divergence, but the Orderflows Trader
did not mark it as such because the
market was still trading lower and made
a new low. The Orderflows Trader
correctly marked the next bar as the
divergence bar based on the divergence
and the price action.
Orderflows 5.0 User Guide – Delta Divergence Bearish

Here are two examples of bearish delta divergences.

The first delta divergence occurs in a bar with a blue
Orderflows Ratio of 49.11. The second divergence has
a normal ratio (black color) of 1.892. A bread and butter
trade that I always look for is a delta divergence with
an Orderflows Ratio that is BLUE color.
Orderflows 5.0 User Guide – Delta Divergence.

One of my favorite trading opportunities is when I see a bullish Orderflows Delta Divergence and
a bullish Orderflows Ratio or a bearish Orderflows Delta Divergence and a bearish Orderflows
Ratio.

A bullish Orderflows Delta Divergence signal aggressive buyers coming in at a low so when you
couple it with a bullish Orderflows Ratio which shows either price defense or price rejection at a
low, I feel it makes the move potentially stronger.

Conversely, when I see a bearish Orderflows Delta Divergence it tells me that aggressive sellers
are coming in at a high. When I see a bearish Orderflows Ratio at the same high, I know that
there is price defense at the high or price rejection at the high. Aggressive sellers at a high with
traders defending that area or aggressive sellers with signs that traders are rejecting that high
makes for a potentially strong move away from that high.

Don’t just blindly sell every delta divergence you see.

Orderflows 5.0 User Guide – Delta Divergence.

Delta Divergence can be used to see trend days early. I explain this in the weekly group training
sessions.
Orderflows 5.0 User Guide

Exhaustion Prints

Measures market exhaustion seen

in the edge of bars. In the previous
version of OFT this was named
Small Digit Prints.

Useful for reversal trades as well

as keeping you in a winning trade
longer.
Orderflows 5.0 User Guide – Exhaustion Prints.

In the earlier version of Orderflows Trader (OFT 2.0) and the original NT7 version of Orderflows
Trader, we referred to the Exhaustion Prints as Small Digit Prints. A lot of other software were
taking this concept and calling it names like “exhaustion algo” when all it is simple is small
volume at the edges of bars.

In OFT 3.0 we have expanded its use allowing you to draw out a zone from the Exhaustion Print
which is useful to keep you in a winning trade longer.

You can also adjust the volume of the Exhaustion Print to either a larger volume or smaller
volume. The default setting is 9. If you trade NQ, you might want to consider setting the volume
at a smaller number, for example: 3. If you trade a market with a lot of volume, you might
consider setting the volume at a higher number like 50.
Orderflows 5.0 User Guide – Exhaustion Prints.

Orderflows Trader draws a box around the volume.

Orderflows 5.0 User Guide – Exhaustion Prints.

You can now draw a zone out from the Exhaustion Print to
more easily highlight the Exhaustion Print.
Orderflows 3.0 User Guide – Exhaustion Prints.

ZN (10-YR Notes) can trade thousands and even

tens of thousands at a price level. When you see
an exhaustion print in such a liquid market it really
stands out as important.
Orderflows 5.0 User Guide

Imbalance Reversal

Reads the order flow at the edges

of bars for reversals in the order
flow.
Orderflows 5.0 User Guide – Imbalance Reversal.

An Orderflows Imbalance Reversal is a sign of trapped traders.

A Bullish Imbalance Reversal occurs when traders get caught short in the hole. A RED down
arrow will appear above the bar.

A Bearish Imbalance Reversal occurs when traders are long and wrong. A Light Green up arrow
will appear below the bar.

We have all probably been stuck in those positions.

 Bearish Imbalance Reversal
Orderflows 5.0 User Guide – Imbalance Reversals.

Bearish Imbalance Reversal

Bullish Imbalance Reversal

Orderflows 5.0 User Guide

Ladder content

Customize your order flow bar.

4 types of footprint charts:

Bid Ask
Delta
Volume
Diagonal Delta

Can highlight up to 3 POC levels in

a bar.
Orderflows 5.0 User Guide – Ladder Content

You have 4 choices of Orderflows charts to look at:

BidAsk – The normal volume footprint chart based on the volume

traded on the bid and at the ask at a price.

Delta – The horizontal delta at price.

Volume – The volume traded at both the bid and ask at price.

Diagonal Delta – The delta based on the two-way auction.

Most traders use the BidAsk chart, followed by the Delta chart.
Orderflows 5.0 User Guide – Ladder Content – BidAsk Chart.

Standard order flow chart.

Orderflows 5.0 User Guide – Ladder Content – Delta Chart.

Helps you see how aggressive the market is.

Orderflows 5.0 User Guide – Ladder Content – Volume Chart.

You can see where the volume is most heavy.

Orderflows 5.0 User Guide – Ladder Content – Diagonal Delta Chart.

Give you a unique view into the two-way auction and areas
where the market get bid or offered strongly.
Orderflows 5.0 User Guide - POC

You can set up Orderflows Trader to show up to three

POC levels in the bar.

The main POC.

POC 2.
POC 3.

Most traders need and use just the main POC.

POC 2 and POC 3 are for more advanced and
nuanced forms of order flow analysis.