Trading Tools Explained

VWAP. Every institutional algorithm uses the VWAP to execute, so this tool will almost always provide a reaction. Auction Market Theory. It's how the markets work, and it's a mechanical way of how you can tell whether the market is bullish or bearish. Because if you know where fair value is and you can see that people are willing to pay above or below it, then that gives you everything you need to be a profitable trader. Cumulative Volume Delta. Probably the easiest order flow tool for anyone who's new because it literally shows you who is putting more effort into the market. If you can see that bears are aggressively trying to sell but price is not following, then you know that absorption is likely to happen and we're going to get an up move. Look for this whenever you're watching for a liquidity sweep to the downside. Order flow. So order flow is just a school of thought that wraps in a lot of different things together, like volume profile, footprints. And essentially what it's showing you is real data that is moving the markets and helping you understand who is in control in a more mechanical way than trying to guess with price action alone. Volume profile. Volume profile shows you volume at price, meaning where did the large money actually trade. And when you understand this, this, you're able to have a mechanical system for finding key levels, and this makes your trading more repeatable. And not to mention, you have more conviction because you know it's based on real data rather than you just guessing patterns. Footprints. Footprints just show you at each tick how many aggressive buyers and how many aggressive sellers there are in each candle. Now, you can set these up to have different data as well, but this gives you an inside look at every single candle so you can see what's actually going on rather than just trying to guess based on price action alone.