Simply put, Order Flow is the organization of time and sales data in a format that makes it easier to read. This method of representing data is more informative and can help you make relative comparisons between different stages that the market is in. This concept has several other names in different marketing companies, but all in all, it represents the same information.
Traditionally a trader will use a bar or candlestick chart to direct his trades. In some cases, he can even use a png or Reno chart, which allows him to identify the price movement on a graph.
If a trader or investor uses Order Flow analysis, then he/she will be able to see all of the stock market’s activities within any one of the above-mentioned charts.
For the sake of convenience, we will compare the two using the candlestick chart. A candlestick trader will have to base all of his trading decisions on 4 parameters that are shown on the graph, namely, Open, High, Low, and Close. However, if that same trader were to use an OrderFlow chart, he could extend his information to competition, location, volume at which maximum trade occurred, and other volume history. Not only does an OrderFlow trader get all of this information in the same candle, but he can also read the chart in real-time. It will show him whether the move has more aggressive sellers or buyers along with the volume behind these moves.
The volume is one of the most essential parts of the trade analysis as that is what records the trades.
A novice at stock market trading is unaware that there are actually two prices for the stock in the market: the ask price and the bid price. The “Volume” is what occurs at the bid or the ask, and it is also the indication of who drives the price move as well as what is happening below deck.
Are you confused yet? With order flow, a trader will be able to collect all of this information and organize it in such a way that it makes sense.
As Order flow charts are created with the help of real-time market-generated information, a trader or investor using these charts will be able to compare the different stages of the market.
To better understand OrderFlow, the trader or investor needs to be well aware of the auction process. So let us know this process with a simple example. Once you have bought some stock, you automatically become a seller. If the price of the stock increases, then you will be able to sell at a profit. On the other hand, if the stock price reduces, you will have to sell at a loss which is not a desirable result. The stock market always moves in the direction of the more aggressive player. When there are more aggressive sellers, then the price will go downwards, but if the situation is reversed and there are more aggressive buyers, then the cost of the stock will go upwards.
Order flow simply gives us the information that we need to understand and predict the present state of the market. By being able to transparently and accurately see what is happening in the market in real-time, you will be able to make more informed decisions.
Most new traders and investors base their transactions on information from the past, and this is what causes them to fail at short-term trading. With the help of Order flow analysis, any trader or investor can become better and make a higher profit as Order flow helps them steer their transactions in the right direction.
We at StockPro understand that these and other concepts of Stock Market Trading are not the easiest to understand. Hence with the help of Dr. Seema Jain, Ph.D. IIT Delhi, we have come up with the Market Profile Combo Course. This course is taught by Mr. Bhavneet Singh, an eminent Trainer, and Mentor at our institution StockPro. He has completed his B.Tech from the National Institute of Technology, Jaipur. He has over 10 years of experience in stock market trading with a particular focus on scalping in BankNifty Options. He is a prestigious NISM certified professional for equity derivatives an expert in the field of technical analysis using Market profile, volume profile, and order flow analysis. He is also an expert in Options trading.
What will you learn in the course?
The Course Is Divided Into 6 Modules
MODULE (A): Market Profile Analysis (Estimated Time required: 1 Week)
Introduction to Market Profile Charts and How to make them.
Key Profile Chart Elements and How to Read the Charts.
Balance and Imbalance.
Market Profile Structures (Both Trending and Non-Trending).
Value Area Relationship.
Types of Market Openings.
Identification of Long-Term Buyers and Sellers through Charts.
Get Free Access to Market Profile Charts.
MODULE (B): Volume Profile Analysis (Estimated Time required: 1 Week)
Introduction to Volume Profile Charts and How to make them.
Key Profile Chart Elements and How to Read the Charts.
Volume Profile Structures and Value Area Relationship.
Identification of Long-Term Buyers and Sellers through Volumes.
MODULE (C): Order Flow Analysis (Estimated Time required: 1 Week)
Introduction to Order Flow, Order Flow Terms, How to read Order Flow Charts.
Understanding Market Imbalance, Significance of Point of Control.
Importance of Delta and Order Flow Price Rejection.
Fair Prices Absorption and Order Flow Support & Resistances.
Order Flow Trade Setup on Reversals and Continuation.
MODULE (D): Miscellaneous (Estimated Time required: 1 Week)
Exclusive Make or Break private live trading session on Bank-Nifty Expiry Day (Minimum 30 LIVE trading sessions)
Combine Market Profile, Profile, and Order Flow to make your Trading Decisions.
Intraday Scalping on Bank-Nifty Options.
Time & Sales Analysis.
MODULE (E): RISK MANAGEMENT, MONEY MANAGEMENT & TRADE MANAGEMENT CLASSES.
Trading Psychology- Most Important Strategy than any other Strategy.
MODULE (F): UNDERSTANDING OF OPTIONS
What are options? (CALL/PUT Options)
Options Basics- Option Terminologies, ITM, ATM, OTM, Option Premium, Option Writing, Historical Volatility, Implied Volatility.
Options Buying Vs. Options Selling.
Open Interest Analysis.
Intrinsic Value Interpretation.
Understanding Option Greeks.
What makes our course special?
- Everyone can do it, irrespective of whether they are beginners, investors, or advanced traders.
- Our course focuses on intraday trading and is very helpful for those who want to refine their trading skills.
- With exclusive private live trading sessions that we conduct, this course ensures that our students can implement what they learn in class.
- We also provide long-term hand-holding support to all of our students that helps them learn the curve and keep going even after they have completed the course.
- With the help of free resources, we teach how to generate Market Profiles and Volume Profiles.
- Students can also repeat the course for up to 6 months after registering for the course if they do not understand any concepts the first time around. Students also have access to the recorded videos of the classes so that they can refer to it whenever needed.
- Separate sessions are held to clear any doubts our students may have. These clarifications can be done on the Telegram channel during the training or even during the live class.
- We have a distinct telegram channel for the StockPro Market Profile Combo Course where members can get daily trade ideas directly from us.
- Enrolling in our courses also gives members access to our specialized telegram group created for the Market Profile Combo Course members. Here members will be part of one of the biggest trading communities, and they can interact with like-minded traders and investors for up to 6 months.
- When students enroll in our courses, they are automatically added to all 5 of our premium and rock star groups.
Free add ons
Customises Excel scanners to help students find potential breakout stocks.
Customized OI sheets of the Index that are automatically updated in real-time.
Complimentary access to the “All in One Trading Course” which is based on technical analysis and fundamental analysis.
Now that you know the impact OrderFlow analysis can have on your success as a stock market trader or investor, you can join our course to ensure your success remains consistent throughout your process.