World Champion reveals the Orderflow System that 95% of Traders do NOT know!

The real order flow.

It helps you in just a moment.

To understand very deep who is dominating the markets actually currently, now. And if this is interesting for you, take it, choose it and read the market like a big player. All big traders at Wall street and anywhere are using the order book. They read everything, the footsteps of the big players, they dominate the trading world with these tools. And I give you explanations about it today, the real order floor reading. And I think you will love it. I translate it with AI because it is easier for me. My English is not perfect, but it give you a lot of explanations how you can look very deep into the markets. You will still love it.

Yes, today we're going to dive deep into the subject of the order book and I can tell you some stories about it, that back in the day there were a lot of traders who traded exclusively from the book. And why did they do that? The simple reason is that the book gives you all the information you need to trade in the moment. Additionally, if you set up your order book properly, you can immediately see where you have low volume nodes, meaning price areas with little trading activity. And where do you have high volume nodes, I.e. price areas with a lot of trading activity where the market has found acceptance. And then you know that the probability is higher here or there that the market will bounce accordingly or not. But before we take a closer look at these structures from which we also derive strategies and I will share some with you today, let's first see what information the order book actually provides us and how we can gain an advantage from it. The first thing we should and must know of course are the terms. And what do I see here? So I have the so called working orders, the orders that are currently being traded. You can see this very clearly here. I have the corresponding volume profile, I have the bids, the so called price levels that are listed on the buy side as limit orders in the book and I have the sell prices which are listed as limit orders in the book. These are not prices that are or were traded on the market, but simply the price levels where market participants are currently positioned in the book at the respective prices. Let's take a closer look at this here I've placed four order books side by side for you and I want to show you what we can observe in these books. The first one, let's take this one here is the Russell here for example, we currently see at the price level 2247.1, there are three limit orders. So traders who want to buy at that price in the book. Then as we look further down to the respective price levels, we can see how many orders are waiting in the book to be bought. What does that mean? That means if someone now goes and sells at market.

Right here, these orders will be filled. And if for example, someone were to sell 100 contracts at market, what would happen then? In the end, he would basically wipe out the entire book downwards until 100 orders have been sold off in total. That's why it's absolutely important to understand and recognize what is actually present in the book for the corresponding product. So if you want to read order books, you also need to know what order sizes are reasonable in such a book for the respective instrument. You can see this quite well if you compare the S&P 500, which is this one here, and the DAX future, which is this one here. For example, you can immediately see here on the sell side where predefined limit sell orders have been placed in the book. There are sometimes blocks of 74 contracts or 48 contracts. This can be much larger during the main trading hours of the S&P 500. In the DAX, for example, you see here, there are 2 contracts, 4 contracts, 4 contracts, 8 contracts, 11 contracts, 7 contracts. There is much, much, much, much less going on. This means there are far fewer traders who want to sell at these price levels. And on the buy side at the lower prices, you see exactly the same thing. And that means if you want to scalp using the order book, if you want to use the order book to your advantage, you absolutely have to first get to know which key actually necessary for the relevant instrument. The next thing you can see in the order book is the so called volume profile of the corresponding day that you are currently actually looking at. So you can clearly see here that by far the highest trading volumes were executed in the price range of 2246.4. These here are the completed trades that took place on this day. I've already explained this very clearly in a volume profile YouTube video. And that's exactly what you see here in the order book with the corresponding key figures. Of course you can also display the total numbers here. But for me it's completely sufficient to have the information about where the so called high volume price areas are. So I know that there was acceptance there. And where do I have price areas with very low volumes? In those areas, the market simply had no interest in lingering and usually rushed through quickly. What advantages do these two pieces of information offer me? Let's take a look at that. Now. Here we can see a whole Bunch of order books side by side. And let's observe together how these order books behave. Let's focus here on the es. This is the price area here with the corresponding orders. And now take a look here we already have something that really stands out. On the buy side of this book we have the corresponding prices all showing between about 10 and 20 to 30 orders. And now there's an order here with 676 contracts. What does that mean? That means someone wants to buy a very large position here. What does that mean? Further, this trader probably has a reason for placing this position here. What does that mean? Further, the probability is relatively high that the market will move there because markets are always looking for liquidity. What does the whole thing look like? And now let's take a look at this together. Yes, here I've taken a screenshot of exactly this chart. And here let's take a look at what the volume profile of this trading day looks like so far. And here you can already see that the price areas up here were fair. Then the market went down, lingered here for a bit, again for a short while, and it dropped again. And down here the trading volume was also relatively thin. So this is the corresponding chart progression. If I look at it creatively for myself now, of course you might say, well, wonderful, but what am I supposed to do with that? Exactly. You're right about that. You can simply draw a chart in your mind. And that's something you absolutely need to learn if you want to become an order flow scalper. How likely it is that the market traded these price areas up here, here again, and here for quite a while, and then it moved faster, then it moved back up here, and right now it's lingering here. What does all this do for us? It immediately gives us an overview of where, looking ahead, we can identify price levels where the market is likely to pause for a while. Where are the price levels where the market looks for reactions? Because there are so called low volume areas, and these are price zones where the market did not find acceptance. This means that if the market now moves up here and reaches such a high volume area where there was acceptance, there is always a step before that where nothing happened. And now the question is, how will the market behave there? And that's exactly what can be recognized very well with the order book. If you see that a lot of market orders are being routed very quickly into the sell side here, the probability is high that the market will push through at first. But if you see, for example, that the market is routing very slowly and Then suddenly larger sellers are quickly hitting the buy side. Then the probability is high that the market will move back down. And how far will it go exactly up to the next interesting price areas. In this case, we now have a great special feature which is that we have a so called big order down here that's a magnet. So we know the probability is high that the market will move toward it. Now there is a strategy. Serge, my dear colleague, is the absolute on, off, low specialist. He knows. I don't even know how many different setups. For example, I love this setup. It's called front running. That means the market will keep trying to move toward this point because there's a big buyer there and then most likely bounce back at first. Why? Because traders generally assume that the probability is relatively high that a lot is already being bought here to take a position. And accordingly they take the opposite direction. Because everyone expects that large purchases could happen here. But at first with high probability they won't, since the market has very thin order books here. But now it could happen that the market rushes down here. Now I'm here and it's moving really fast and it stays fast and it eats up this order here. So what should we be looking for now? Now you need to look at the order book to see what happens below here and how the market is being played there. Is the speed high or is the speed low? And if, for example, the speed decreases here and you see the market moving back up and gaining high speed, then you know that this buyer here was really a big player who wants to drive the market upward. And then you can carefully look for those particular moments where quick and short trades are actually possible for you. You can also pinpoint this by predefining exactly at which price levels the market should ideally provide you with certain important information from the order flow. And that's exactly what we can observe live right now. So I'll switch over here. Earlier we were much higher up. Now the market is going down, it's moving toward this big order. And let's just see what's happening there right now. There's not much going on in the markets at the moment. Of course, that's also due to the time of day. Nevertheless, you can see it, this magnet effect is pulling. So now we know the market has already moved down from up here and we can keep playing this trade here. When the market moves up, it starts to lose momentum and will come back down again because this magnet is simply there. The market participants are front running. They're moving toward this liquidity and will probably often bounce off from there at first. And that's exactly what we can observe right now. And now it has been eaten up. Bang. And you can also see that there was immediately a big spike in volume here. And in this volume profile you could see that the market consumed a large block there. And maybe it's also quite interesting to take a look at how that looks in executed form. So if we now look into the footprint chart, which is the chart we got to know, that shows us at the corresponding times, for example here, a five minute block, how many orders were traded at which price level. Then you can see here very clearly here, 712 orders were sold specifically as market orders into the previous price range. And now of course it's interesting to see what happens below this level and whether there will be a reaction that causes the market to move aggressively upward again. And then we'll see large orders coming in again on the buy side. And if we take a look at the whole thing now, we can already see, ah, interesting, the market is holding steady for now, establishing itself above this large sell block that was executed here. And that means for us, we can now initially assume that there is a likelihood we'll see a pullback because this buyer, he has now gotten his positions. He's done. The seller who dumped his positions in there is satisfied that he got his liquidity, especially at this time of day. And so now the price is once again inclined to possibly move up to the fair price area that we have predefined. And of course you don't get this information just by looking at a chart. You don't see any of that there in the order book. You can see exactly what the market is doing right now and what information it is giving you. Maybe one more story so you can get a better idea of what you can read there. Let's just take a look at what smart ideas are for us right now. Here, for example, is today's vpoc, which is also a magnet down here we saw that the market played with very high liquidity. And then we also have the so called low volume areas, meaning the price ranges where the market had no interest in lingering. And if I'm an order book scalper, then this is exactly what I do. I now look at how the market speed is at these low volume areas and then I can deduce from that whether the jump upwards is coming. Then I can clearly identify for myself that from here to here I now have the opportunity to trade and have a minimal stop loss. And if for Example it has completed its transactions and comes up here to this fair price area. Then I can identify here with what kind of momentum the market is moving up. And then there are different methods. One that many people know is the so called absorption. That means here is a buyer who keeps playing into the respective price areas the whole time, but the market doesn't move any further. And when we see such absorption, we know that there is a big seller at this price level who simply absorbs everything that is being bought in the market. And when the speed suddenly decreases and you see that the orders being pushed into the buy prices are getting larger, well, what do you think will happen? It's clear the market will go down again and return to predefined areas that you have identified using the order book and the corresponding volume profile. You can make great use of this, especially if you are a day trader. For example, you can do the following. You can take for instance a volume profile of the previous day and you have carefully established price zones, for example business zones, where you expect the market to give you promising and solid trading ideas. Now, for example, you have predefined that in this price area you are looking for a counter trading setup. Because for instance, the market has been active here for a while. I assume that from here it will move back down to here. It's a presumption where we don't know if the market will actually provide us with this information. What's the first thing I can do now? I can watch to see if when the market reaches this area, it gives me a setup, for example, a wonderful B where I see it briefly spiked above and now has formed a B formation. Now imagine you look at the order book and at this moment, at this point in time, you see, I'll draw here what is happening there. Now the market has moved up here and is starting to absorb. That means the market has now collected a lot of liquidity there. It can't go any further. Maybe it peaks just a little bit above and then does the same thing again. Now all I have to do is wait for the moment when I see the speed picking up more orders are being hit on the buy side. And then I know this is the point where my trade begins. And that gives me a fantastic risk reward ratio because now I know the market can move all the way down to here. And these are the great things I have when I take such factors into consideration for myself. And if we now take a look at what information the market has just given us here, you can clearly see that it just moved down here. And what did it do then? Let's take another look at that in the footprint chart and then you'll really see that this is a tremendous edge I'm sharing with you right now. The market moved down here again. It checked if there was still liquidity there. No, there was no liquidity. And then it moved up here and here with larger purchases that make sense for this time frame, it decided to move back up. And this way, using the order book with micro micro stop losses, you can get wonderful trades where you sometimes have risk reward ratios that you could only dream of with pure chart analysis. I hope you enjoyed this lesson on order book scalping, and I've really shared a lot of insider tips today. I'm happy if you liked it. Thank you all very much for listening, and I look forward to seeing you again soon. Thank you very much.