2. Order Orderflow Concepts and Strategies (Lesson4Mod2)

Question 1

Trading the curve

W-pattern

Answer 1

Bottom reversal

Question 2

Breakout failure

(right ‘orange’ column at top green candle, its POC usually at high point)

Answer 2

Buyers trapped at top.
Significant Delta shift!
1. Previous Resistance level!
2. Large amount of stacked buyers at one side.
3. Price closing lower if it’s top reversal (lower than POC, and the stacked buyers)
4. POC shifting to lower subsequentially

Picture: at VAH/VAL
The opposite for bottom brekout failures at support!

Question 3

Delta reversals

Answer 3

Slow grinding price moving toward Support or Resistance area.
Downward, toward support: minus Deltas, then at e.g. bullish engulfing candle large +Delta [exhaustion of sellers, then market buyers step in]
*IMMEDIATE TARGET: touch back to VWAP line

Question 4

Finished auctions

(example: day1, day2, day3. Support area! Watch the low at previous day; zeros in Bid|Ask; no lower prices)

Answer 4

A bottom reversal. End of auction at one end:No participants left.
end of continuation pattern, Looking to previous Support level and Value Area Low [never looking areas in between! ONLY specific area of interest] , Support is hit, that’s usually also the previous day’s low, Large sell delta with no down move. Subsequent candles getting a bit higher having also 0(zero value) lifting of offers; Lower bid sizes, end of auction on downside.
*IMMEDIATE TARGET: touch back to VWAP line

Question 5

VWAP reversals
(Volume Weighted Average Price)
Picture: 1.Breakdown 2.Pullback to vwap 3.Buyback at vwap = absorption = price not going higher, 4.Reveral down from vwap)
¤Entry: at second breakout candle for better average price; stop loss at high of this or previous pullback/breakout candle peak. A safer entry at 34660 price ‘candle line’.

Answer 5

Price returns back to Vwap and touches it.
absorption of sellers
Example2: in uptrend above vwap, sellers pushes price down, at vwap: absorption of sellers=not moving lower, but rotates back upwards)
*IMMEDIATE TARGET: touch back to VWAP line

Question 6

Opening breakaway
(Continuation)

Answer 6

1. Green candle
2. Subsequent candles price closing above the 1st candle’s cluster zone (VPOC is bottom heavy). b-profile candle
   #Opposite direction with p-profile red candle at resistance!

A popular trade setup!

Question 7

Opening reversals
(Reversal)

example on long side

Answer 7

Short side example. P-shape profile, large amount of buyers at top (trapped),

High minus-D volume,
Sells concentrated at bottom = Value zone! b-shape.
Trapped sellers,
VPOC bottom heay candle and consequtive VPOC shifting higher.
Wait for close above VWAP (red line)
&laquo_space;twice mistype! not LVN but HVN in example!!&raquo_space;