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HOW TO OBSERVE OR
, DERFLOW CHARTS

Ord e r fl ow C r a s h Co u r s e

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 Rajandran – Your Mentor
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Founder – Marketcalls & Co-Founder - Traderscafe

TRADING SOFTWARES

Trade mostly index/stock futures/option instruments. Use Ninjatrader 8 (Bell TPO) for Orderflow & Market
Trading/Investing since 2006. Wrote 3200+ articles Profile studies and Amibroker for Trading Systems
since 2007 about various technical analysis topics
EXPERTISE COMMUNICATION

Market Profile, Order flow analytics, Trading Twiitter : marketcalls_

System/Indicator Development, Automated Trading Email : rajandran@marketcalls.in

TRAINER NATURE OF TRADING

Trained more than 500+ Professional traders on Market High risky mean reversion bets, pure directional trades,
Profile, Orderflow & Amibroker Trading System systematic & mathematical trend following & hedged
Development and Automation futures trades

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How to Observe Orderflow Charts

• Strong Auction Vs Weak • Liquidity

Auction

• Trapped Buyers/Sellers
• Volatility

• Initiative , Responsive Price • Exhaustion High - Low

Auction
• High Volume Area
• Delta Unwinding

• Low Volume Area

• Delta Positioning
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Strong Auction Vs Weak Auction

• How to Interaction between Buyers and Sellers happens

• Strong Auctions – Auction Imbalance, One timeframing, High Volume, High

Delta

• Weaker Auctions – Overlap in Price rotations, Typically Low volume, Low

Delta

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Strong Auctions

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Strong Auctions

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Weak Auctions

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Volatility

• Volatility arises due to change in market participation

• Events creates volatility (RBI policy announcements, GDP data, Earnings)
• Trading Range will be higher in high volatile situations
• Lower trading range in low volatile situations
• High Volatility doesn’t mean High Volume

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Volatility

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Initiative Vs Responsive Price Action

• Initiative , Responsive, Initiative

• Responsive, Responsive
• Initiative, Initiative

• Initiative Action – High Volume with Directional Delta

• Responsive Action – High Volume with Reverse Delta (absorption)

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High Volume Area

• High volume = Higher participation activity

• liquidity zone

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High Volume Area

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Low Volume Area

• Low volume = Lower participation activity

• Lack of liquidity zone

• Low volumes are result of stops, lack of liquidity, algos, aggression from the
participants.

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Low Volume Area

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Liquidity

• Liquidity determines the velocity of the price.

• Higher the liquidity – higher the interaction between the buyers and sellers

• Illiquid markets will trend until they find good liquidity zones.

• Zero Liquidity zones with higher momentum act like key support / resistance
levels

• Zero Liquidity zones with lower momentum generally gets filled.

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Liquidity

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Delta Positioning

• Delta positioning arises from initiative taken

• Participants defend those positions and add to them

• Markets will always test the delta pockets zones because it is the zone
where liquidity is been supplied.

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Delta Positioning

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Delta Positioning

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Delta Unwinding

• Unwinding of Positions

• Short term participants are not concerned about price they simply liquidate

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Delta Unwinding

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Trapped Buyers/Trapped Sellers

• High volume buyers/sellers transacted at days high or low

• Also termed as bad high/bad low

• poor way of facilitating the trade (anomaly price often revisit those zones)

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Trapped Buyers

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Trapped Buyers

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Trapped Sellers

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Exhaustive High/Low

• Stopped out Trades

• Thing exaggerated price response at extremes with wild swings

• Highest delta, highest volume and wildest price rotations

• Exhausted market tends to take a break first

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Exhaustive High-Lows

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Questions

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THANK YOU

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