I created this video to explain volume profile and order flow analysis together to find better trading opportunities. This video is more on volume profile and less on order flow though.
To me volume is more important than time. You can spend a lot of time in an area but that may be because the market is consolidating ahead of an economic release or a Fed announcement. As you can see volume shows a much better picture of support and resistance. No can we use this during the intra day time frame.. well yes,, most traders including me will look for these areas to be traded during the day and trade off them accordingly. But can this information be used in other ways to help us trade the intra day time frame. Again yes and very effectively when you know how to use it.
Volume profile and order flow analysis can be used for trading anything on an organized exchange or
over the counter. Because the volume profile reflects the underlying nature of markets, which does not differ fundamentally from one market to another, the same basic methods can be applied no matter what futures contract or commodity is being bought or sold. Volume profile and order flow analysis work great together by providing necessary volume information at key areas, thus allowing for much better timing of your trades and trade location.
CFTC Rules 4.41:
Hypothetical or Simulated performance results have certain limitations, unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.
This presentation is for educational and informational purposes only and should not be considered a solicitation to buy or sell a futures contract or make any other type of investment decision. Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Hypothetical Performance Disclosure:
Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.