The whale order

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"Unlocking the secrets of the market with order flow
trading. Dive deeper into the mechanics of buying and
selling to gain a competitive edge in your trading
strategy”

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 The Whale Order.
Trading institutional orderflow and Supply and
Demand.

-The Forex Scalper-

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Copyright © 2022 [The Forex Scalper]
Author: [The Forex Scalper]

Cover design: [The Forex Scalper]

Design of interior: [The Forex Scalper]

No part of this publication may be reproduced by means

of print, photocopies,
automated data files or in any other manner whatsoever
without the prior written
consent of the publisher.

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. This book is dedicated to the

successive generations of traders

worldwide.

this book is a piece of texture a piece of

my story something tangible something
physical.

in clear visuals examples text and much

more in its purest form of knowledge

the whale order.

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8
Chapters.

- The story of institutional orderflow.

- Crude Oil trading story

Chapter 1 /

Determining the right Supply and Demand levels.

Determining the right levels with market profile.
Market hours and assets to trade.
Summary Supply and Demand Advanced.
Importance of Price and Volume.

Chapter 2 /
Understanding Orderflow.
CME Data and contracts.
Volume and Delta in depth.
Footprint clusters and orders.
Imbalance / Large imbalance levels.
Psychological price levels EQL lows / highs value area.
Institutional whale orders explained.
The COT.
Market profile and POC.
The DOM.
Iceberg orders.
Story of indices.
Apply in real markets.

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 Targets.
Summary Institutional Order Flow.

Chapter 3 /
Mental state of mind.
Routine and clarity.
Trading Psyche.
The most common pitfalls and how can you eliminate
them.

-My last words.

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`` Introduction / forword ~

The story of a man who has developed a strong routine

and a refined discipline from years of testing and learning.

This story is probably one of the last but one of the best to
give you a good insight into what institutional order flow is
all about.
And what it does when you apply it in the right way.

It distinguishes the average retail trader at a high and

refined level to see what actually happens in form data
and imbalances.
And how this market is dominated by the big players the
whales.
In the ability to follow the algorithm and see the orders
flow the real volume into the market.

This market is built on price time and orders.

All this goes hand in hand with each other every price
movement you see is accompanied by a huge amount of
buying and selling power institutional limit orders.

Behind every move there is logic every imbalance supply

or demand there is an order sometimes with 1 million and
sometimes with 20 million.
These limit orders need to be filled the why and how this
you will you learn in this book.
You will gain insights into my vision and how I easy but in a
detailed way follow these institutional whale orders.
The basis for me has always been supply & demand and
this is still the building blocks for me.

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Only order flow trading has given me the opportunity to
get an even better hit rate, also to understand which
Supply / Demand level makes sense which not and what
happens in a liquid level.

Mention here the delta data the volume the footprint and
the point of control great elements to understand when
price is ready for a sell or buy order, and when the whales
enter the market.

`` Welcome to my story the whale order.

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Crude oil trading story,
This story needs to be told an awful lot has happened in a
year this is also the reason why i am writing this book the
whale order is part of my journey and a story that needs to
be told.

The story of crude oil belongs in this.

Crude oil is where it all started and nice enough is where it

all grew bigger,

We know that crude oil is perhaps one of the most stable

commodities in the world, just like gold a safe haven to
invest for the big whales.
It is stable and it moves well.

Something I started with crude oil about 12 years ago I

consistently earned money with it, although we are talking
about a few 100 euros a day, and of course we also lost
some, which was not a good edge for me, they were the
building blocks the starting footsteps for the trader I have
become today.

A lot of money goes into assets like this because it drives

the economy and worldwide we need it every day oil is a
necessity of life so a wonderful asset to trade and invest in.

It is stable and it reminds me of indices and gold but with

something different it is perhaps one of the most stable
movers in my opinion.
So to speak crude oil is a great mover it moves really well
during both the London and New York session basically 24
hours a day 5 days a week obviously the New York session

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will be something volatile but the london session is
certainly not inferior to that, it remains nature USD related
because we traded the oil against the USD.

The volatility of crude and its habits characterizes deep

and hard moves in price ranges from Supply to the
Demand of value area lows and highs..

Yes it leans towards Gold only Gold is much more

aggressive and tests levels sometimes over and over it
moves like us30 nas100 & spx think we can compare it
more to that.

It's just very moveable and unique for its kind.

Because yes there is nothing but oil such a large asset an

asset that we use every day from the gas station to our
house.

The price ranges themselves are perfect if we dive deeper

into the order flow as I have recorded almost 20 videos on
crude oil alone you will see that it belongs to my top 3 of
favorite assets I started with it and end with it.

The high crude imbalances and the large orders that are
tanked at the edges of our trading zones speaks for itself.

0x241 to the question with negative delta and huge

volume increase on what asset can you compare to that?
There is no doubt that you will be on top of it.

This is a trade that has just occurred made more than 3.3
million euros return on it, in one word great.

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Can't describe in any other way what kind of euphoria that
can give, a similar kind of trade also fairly recently on
crudeoil gave me again on the ask a 0x98 with a very
heavy and deep red delta and high volume notes.

Below you see the examples of the clusters both on an

equal high scenario with a beautiful supply horizontal with
a clear high imbalance on the left edge, also confirmed
vertically both with 0x241 and 0x98 as described extreme
numbers numbers that we do not see all day but purely on
the edges of the lake.
This is where we want to fish and this is where we want to
bet high, sometimes it's just waiting for us to get there
and sit on our hands within this range.

The 0x98 gave me a 2million return with a very nice risk to

reward, it is possible on oil the chances are endless this
volatile asset moves as said.

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Chapter 1

Supply and Demand

Advanced.

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Determining the right Supply and
Demand levels.
.
I think most of you know it, but I still want to briefly
explain what Supply and Demand is exactly. Especially if
you don't fully understand this yet, this is very important
to understand.

What is Supply and Demand?

Supply is actually the amount that is available and demand

is the amount that is requested. If you think about Supply
and Demand, it is actually very simple.
Just imagine that you sell bananas from your own farm on
a local market.
And you do not necessarily have to sell all your bananas.
Because you can eat them just as easily as anyone who
buys them from you.

If bananas reach only 1 dollar per bag, you may be willing

to sell 4 or 5 bags. But if the price rises, you decide to
make more available. Up to 10 dollars per bag. At that
moment you are more than willing to sell every last
banana you have. Just because you can easily take all the
money you have made and buy something else to eat.

So Demand refers to how much (quantity) of a product or

service is desired by buyers.
The quantity demanded is the amount of a product people
are willing to buy at a certain price; the relationship

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between price and quantity demanded is known as the
demand relationship.
Supply represents how much the market can offer.
Supply and Demand Trading generally describes 2 types of
zone entry’s that are Sell at Supply Zone and Buy at
Demand Zone.

There are 5 rules in trading Supply and Demand:

1. Always look to the left

2. Sell at Supply Zone
3. Buy at Demand Zone
4. Always use Stop Loss
5. Never forget Rule 1 2 3 and 4.

Important movement that must be known to trade Supply

and Demand

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Rally= Buyer exceed Seller
Drop= Seller exceed Buyer
Base= Seller and Buyer in equilibrium

Continuous base is a kind of base that continues the

direction of an initial price trip before the base occurs.
There are 2 types of continuous base that are drop base
drop (DBD) as Supply Zone and rally base rally
(RBR) as Demand Zone.

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So much for the basics of supply and demand which are
important to understand before you can go further.

Now I will go a little deeper into this topic with some

examples.

Determining a correct Supply or Demand level is a critical

point and we will go into this in more detail in this chapter.
The how and why you should pay attention to this.

The most powerful supply and demand zones are the

single Supply and Demand zones the zones with an
imbalance with not much traffic in it and a strong legout
by this we mean the first move away from the imbalance.

These imbalance levels represent a strong impulsive move

often accompanied by two or three strong candles from
this Supply or Demand level.
So something is going on in these levels, someone was
willing to tank a lot of orders there and we see it reflected
in the move away from this imbalance a level richly filled
with institutional limit orders.

Usually when price returns to this level, these are the

levels you want to trade because at that critical point limit
orders are ready to be filled.
I will show you below an example of what I mean by a
single imbalance and a correct legout.

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Above is an example of GBPUSD on the 5 min timeframe.
Here we see a nice example of a nice imbalance with a
good and clear Legout.
This is a good supply zone.
We also see price come back several times and then drop
again.
A very clear strong legout that is characterized with a lot
of power.

In the example I show the 5 min timeframe but this

Imbalance with a strong legout can be found on all
timeframes.
And it is very important to determine a good Supply or
Demand zone to be able to trade successfully, of course.
In order to know this even better, in addition to the
imbalance and legout criteria, we will be able to recognize

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the zones even better later in the book with the footprint
charts.

Which is also very important to know is that I prefer the

freshest and most recent levels.
Levels that are often created in a session before such as
for example the Asia or the London session.

And what i want you to understand is what the major

players are doing and how we can follow their whale
orders.
I mean by using the freshest levels you have the
opportunity to do this.

And that is where many traders go wrong. not using fresh

Supply and Demand zones.
We often see that if a Supply or a Demand zone is not
completely valid, the price tends to smash through it more
often.
With the naked chart it is therefore more difficult to see
how strong the Supply of Demand zone is.
To see this completely well or I mean even better, we can
view this on the footprint charts.

It is also very important to recognize where we can find

the potential Buyers and Sellers.
By understanding the price range, you teach yourself to
understand the bias of either Sellers or Buyers.

It is also not impossible to recognize and take a buyers

move in a sellers market.
But only learn to understand that this is often a small
correction of price because price never flows continuously
in a movement.

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I mean they are often short deep moves with a correction
in price to fill more limit orders and then move the train to
a next station.
From imbalance to imbalance.

See it as a long car ride within this car ride (the session)
the car will have to come to a standstill at least 2 or 3
times to top up fuel again to be able to get on the road
prosecute.
The same with the market also the prize will not continue
to its final destination in 1 go.

With powerful fresh imbalances where price trades

towards and continues to follow sucks with limit orders
and then continues the trip.

These are the Supply & Demand levels you want to trade.
Let's call these the iron zones later in the book.
We will only trade the strongest zones as strong as iron.
This is also what I strive to teach you in this book.
So that you will never trade the weaker zones again or
draw the completely wrong zones

I want you to learn to trade in almost perfection.

These iron zones often also match on multiple timeframes,
such as the m5 m10 m15 m30 etc.
This gives a strong indication that this is an iron zone an
m30 zone on the m5 or m10 will show itself as often
multiple imbalance levels in an m30 zones.

We will also see this later on the footprint chart, more

about this later about the character and recognition of
these imbalance levels on a technical chart.
You can imagine if you can validate these levels in form or

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data that you can actually determine an iron zone , with
very close precision.

Let me give you a small example an iron zone on the m15

validated on the footprint chart.
By means of strong sell orders a negative Delta a high
volume really perfect, it is trading to perfection like a
surgeon operated with precision.

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Purely to show you the power behind this iron zone and
the validation on the footprint.
That it is also an iron I really call the order flow tools as a
tool an element within our trading because it is about logic
we actually see deeper what happens within our Supply &
Demand levels and thus increases our chances of success.

You will get more clarity in the subsequent chapter with

regard to the Delta Volume Footprint and Market profile.

we continue our way in this story of knowledge that I

share with you in detail.

~ I'll be honest with you so far I'm writing this story

flawlessly and I'm on day 2 with some breaks here and
there, writing something every day and a piece with some
motivation and dedication to this story it's already my
most favorite book.
Looking at the a green lawn and mountains in the distance
somewhere on a piece of earth.

Market Phases.

The market moves in 3 phases:

 Distribution
 Re-distribution / Re- accumulation
 Accumulation

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The market trend is characterized by a repetitive three-
stage pattern, which can be observed in both short-term
and long-term time frames.
During a strong trend, the market moves through three
phases and then pulls back to repeat the cycle, either
pushing higher in an uptrend or lower in a downtrend.

-Accumulation Phase

In a bull market, accumulation phase starts when

experienced traders and institutions start to enter the
market.
The price movement during this phase is slow.

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The accumulation phase often happens at the end of a
downward trend when most investors have a negative
outlook on the market.
However, this can be a good opportunity for smart
investors to enter the market if the price is low.
It is important to pay attention to technical indicators,
patterns, and consolidation during this phase.

-Re-Accumulation/ Re-Distribution Phase

The Re-Accumulation/Re-Distribution Phase is the stage

after the accumulation phase where more investors enter
the market and prices increase.
This phase is typically accompanied by positive economic
data and is where trend-following traders may enter the
market.
The Excess Phase, the final stage, is marked by irrational
optimism, bubble-like behavior, and a surge in uninformed
buying.
At this stage, smart money begins to reduce their positions
as the market becomes vulnerable and volatility increases.
A trader should be aware of warning signs such as
declining trend strength and deeper pullbacks.

-The distribution phase.

The distribution phase marks the beginning of a bear

market.
In this phase, experienced traders and institutions will sell
off their long positions they acquired during the excessive
phase. The market is usually overbought at this point, but
inexperienced traders may still expect further bullish
activity.
It's crucial for traders to understand the market phases, as

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mistaking a distribution phase for a consolidation period
during a bull market can result in costly mistakes.

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Note: “Supply and Demand levels play a crucial role in
determining the price movement of a financial asset.
In order to trade successfully, it is important to understand
how to determine the right Supply and demand levels.
Supply and demand levels can be determined by analyzing
the order flow in the market.
This involves tracking the orders being placed by buyers
and sellers, and observing where the market has previously
reacted to these imbalances.
Key areas to watch for include the levels at which buyers
are willing to pay more for the asset and the levels at
which sellers are willing to sell for less.

To determine the right Supply and Demand levels, traders

can use various charting techniques.
Ultimately, the key to determining the right Supply and
Demand levels is to have a deep understanding of the
market and to be able to identify the market's reactions to
specific levels.
This requires a combination of technical analysis, market
knowledge, and experience.
By using the right tools and techniques, traders can
increase their chances of making profitable trades based
on accurate supply and demand levels.”

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Determining the right levels with market
profile.
Now you understand the theory behind the lower
timeframe iron zones.

So now it's time to add an Order Flow element one of my

most favorite elements.
The Market Profile this Market Profile is different from all
the others because it gives the data based on the future
markets.
It gives us the possibility to look at different time frames
through the tools we have.
And it gives us a first picture of where the most traded
volume for that specific day is actually located.

The Market Profile is displayed in an inverted volume bar

possibility to read the right or left the choice is yours.
I usually use it on the right as we draw the Supply &
Demand zones left to right.

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As you can see we vertically show the volume in gray
spikes which are volume clusters based on future market
volume applicable in all major assets that we trade.
Think of Gold Dow Jones the Pound the Euro etc.

In these bars you will find the most trading volume

highlighted in a thick red line.
This thick red line is also called the point of control
according to PoC.

The most trade volume is again in this thick red line, there
can be several in different places.
But often close to each other, we also see this changing
day by day and often these line up to perfection with our
iron zones.

So you can imagine if these levels tell us where the most

volume is on that particular day that it is crucial that these
match our iron zones.

And you will understand that this is often the case and the
chance of a filled zone with orders makes it even more
attractive for us Order Flow traders by understanding
where that volume is located.

Besides it being a very handy tool to use as to trade from,

it is also a very good and strong tool to determine your
target.

Often we see one or two poc lines within a price range if

we know that poc A is within an m15 or m30 zone and at
the bottom or top is the next poc B line so it is a good
indication of where we can trade.
And where we set our target so that we can close a large

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part of a trade or move our trade to break even as soon as
the ultimate PoC is hit from the target.

A rule of thumb is good to remember respect the poc and

the iron levels as said represent Volume and Volume is
where the trades are.

Combine the PoC with the iron zones and you will see that
these often match to perfection.

Below is a example of poc with an iron zone on m30/15.

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The poc is thus a very important tool and thus gives us a
picture of where we are and where the volume of the day
or week is.
And where we can see price to trade both the PoC and the
Iron zones serve as a kind of magnet.

A small summary;

The market does move in waves and we often see this

coming back day after day.
Sell Supply and buy Demand but with logic.

If you learn to understand this image and actually see

what happens trading is a lot easier because you realize

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that there are only a few opportunities per week or day of
course this is entirely up to your plan only where you are
at the time of the day so a critical point to increase your
chances of winning.
More about this in the next chapter.

In this chapter I take you in the session market hours and

where the most volume is and why we have to follow this
session with discipline and trade to increase our chance of
winning.

Trading is discipline trading is having a routine and a clear

plan and executing it.

99% don't have this and therefore lose on a consistent

basis.
Or simply don't last long with their account because they
don't consistently execute their plan or self-sabotage their
plan.

Important questions that you should be able to ask and

answer yourself do you have a plan, what plan is that and
how do you implement it?
Can you explain and substantiate each trade to yourself, I
tend to take you a piece in my pysche now, only we save
this piece for later in the book.

Note: “ Market profile is a method of analyzing the

behavior of the market that has been popularized by its
originator, J. Peter Steidlmayer.
This method involves plotting the distribution of price and
volume over a given time period, which can be used to

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determine the market's value area and the most important
price levels to watch.
Determining the right levels with market profile is crucial
for successful trading, as it provides a comprehensive view
of market behavior.
The value area is a range of prices where the market has
spent the most time and has shown the most activity.
This area represents the market's perception of fair value
and can provide a good reference for support and
resistance levels.
In addition to the value area, market profile also uses a
range of other tools and techniques to help traders
determine the right levels.

For example, Point of Control (POC) is the price at which

the most volume has occurred, and this can be used to
identify key support and resistance levels.
Additionally, the Initial Balance (IB) is the range of prices
that occur during the first hour of trading and is a useful
reference for determining the market's opening range.
In conclusion, market profile is a powerful tool for traders
that provides valuable insights into market behavior.
By determining the right levels using market profile,
traders can increase their chances of making informed and
profitable trades.”

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Market hours and assets to trade.
The market hours and understanding in which session you
are.
In this chapter I will explain you where to find the whale
orders and around what times.

First of all i will be clear and concise about this basically

the market moves 24 hours a day 5 days a week.
Which is visible to us as traders.

Only we are in multiple timezones with multiple sessions,

think of the Tokyo, Frankfurt, London, New York and
Sydney session.

This is probably not unknown to you.

Below you will find a clear overview with the market hours,
just to give you an idea of the opening times.
These times are crucial to understand and follow because
that is where we see most of the Whale volume coming in
also on the order flow tools.

Forex trading hours are based on when trading is open in

each participating country. While the timezones overlap,
the generally accepted timezone for each region are as
follows:

New York 8am to 5pm EST (1pm to 10pm UTC)

Tokyo 7pm to 4am EST (12am to 9am UTC)
Sydney 5pm to 2am EST (10pm to 7am UTC)
London 3am to 12 noon EST (8am to 5pm UTC)

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The two busiest time zones are London and New York.

The period when these two trading sessions overlap

(London afternoon and New York morning) is the busiest
period and accounts for the majority of volume traded in
the $6 trillion a day market.

Our job is to put ourselves in the best position possible, by

following the whales and understanding when they are
active.
We know that the whales are around the opening as soon
as the London / New York opening bell rings they will pull
up and the big money will be moving between Supply and
Demand.

Limit buy and sell orders are placed and the money starts
to move.
This is reflected in the massive spikes during opening, and
it's game on.

The answer is therefore the most volume is in it and

around the opening hours 2 to 4 hours from the opening
are in my opinion, the very best hours and the hours with
the most Supply and Demand and a huge amount of
volume.

So by understanding this all you have to determine for

yourself which hours you will trade and which assets will
you trade?

For the GBP traders volume is hitting the market in the

Frankfurt / London open GBPUSD from here you can start
looking at Iron zones to be tested the larger imbalance
levels.

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And for the Dow Jones (us30) and Nasdaq (nas100) it is
slightly different.
Because this is a real New York move.
Often we also see some volume lasting London session but
only see this as a start up for the fresh larger imbalances
that occurred during the Asia and the London session.

Thus a small list of GBP traded during Frankfurt/London

until the New York closes is a possibility as it is GBP and
USD so there is a lot of volume during the New York.
This about until the London closes as the two most
powerful sessions exit each other and the New York comes
to an end within hours once the London session is closed.

So keep your core focus on the session opening and the

hours after.

Note: “Market hours and the right assets to trade are key
factors in the success of a trader.
Different financial markets operate during different hours
and some may only be open during certain times of the
day.
It is important to understand these market hours so that
you can plan your trades effectively and take advantage of
the most active trading periods.
Forex markets, for example, operate 24 hours a day, five
days a week, with the exception of weekends.
This provides traders with a great opportunity to trade
during their preferred hours, whether that be during the
day or at night.

42
Stocks and indices, on the other hand, typically operate
during regular business hours and may not be as active
outside of these hours.

In addition to market hours, it is also important to choose

the right assets to trade.
There are a wide variety of assets available in the financial
markets, including Forex, stocks, commodities, indices, and
futures.
Each asset class has its own characteristics and it is
important to understand these to determine which assets
are best suited to your trading style and goals.

For example, some traders may prefer to trade Forex as it

provides a high level of liquidity and the opportunity to
trade 24 hours a day.
Others may prefer to trade stocks as they offer the
opportunity for longer term investments and the possibility
of earning dividends. Commodities may be a good choice
for traders who are interested in the natural resources
market and the impact of global events on the price of
these assets.
In conclusion, understanding market hours and choosing
the right assets to trade is crucial for successful trading. By
being aware of the most active trading periods and
choosing assets that align with your trading style and
goals, you can maximize your potential for success and
minimize the risk of loss.”

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Summary Supply and Demand Advanced.

Supply and Demand trading involves identifying specific

patterns in price action.

There are four main types of Supply and Demand patterns:

RBR, RBD, DBD, and DBR.

To minimize risk and maximize reward, it's important to

look for Supply and Demand zones with limited traffic and
little price deviation.
Avoid entering trades in areas with high levels of volatility,
such as those with big wicks, as these can lead to
increased risk and potential for stop loss.
Timing is crucial in Supply and Demand trading, so be
mindful of entering too early.

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We learned a few things in the previous chapters.
These are the principles that also need to be completely
correct before we can move on to the whole Order Flow
trading.
Let me summarize it well and clearly for you so that we
are sure that this is all completely clear to you and that
you can draw out the correct zones without using the
Orderflow.

1. To find a good basis for a correct Supply or Demand

zone, we look for a nice imbalance candle with (Very
important!) a nice Legout! See the image below.
2. It is also important that as few candles as possible
form the Supply of Demand.
See also the image below.

We also talked about the Iron zones.

These are mainly the zone that correspond to the level of
the PoC.
We will discuss more about this and how you can apply it
exactly in the following chapters.

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And finally we talked about the opening hours when they
are and why this is so important to know during your own
trading.

Now that we've covered all this and you know all this, we
can take it a step further.
In the following chapters we will go into more detail about
trading with the Orderflow tools, especially about the
tools I use and how I use them.
And at the end of the book I want you to know exactly all
the steps I follow when I take a trade.

I just want to show you the market through my eyes.

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Importance of Price and Volume.

Importance of Price.

Price is a critical factor in trading, as it is what drives

people to buy or sell a product.
A change in the price of a commodity can determine
whether we make a profit or incurs a loss.
The objective is to buy low and sell high, but many still end
up losing money in trading.
This is because there has to be a strong enough driving
force behind a price movement to overcome the opposing
force.

In other words, there must be more buyers than sellers for

the price to go up, or more sellers than buyers for the
price to go down.
The market participants influence the market movement
with their buying or selling actions.

The manner in which price leaves a

certain range is crucial in
determining the strength of its
future movement.
Just because price has moved in a
certain direction does not guarantee
it will continue that way.
Understanding how price moved is
important to evaluate the market's
vitality, be it strong or weak.

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Have you seen a chart that appears like the one depicted?
It may seem simple to observe a lengthy downward bar
and think "sellers are dominating."
But, before acting on that notion, consider that the market
may continue to fall or recover with a long upward bar.
To accurately judge the market's strength and the driving
force behind it, volume must also be taken into
consideration.

The price of a commodity may appear to change quickly

and drastically, but understanding the source of this
change can provide insight into its strength or weakness.

On a chart, a long downward candle followed by a long

upward candle followed by another long downward candle
may suggest the market is being controlled by buyers or
sellers.
However, a closer examination of the order flow chart can
reveal the true cause of these fluctuations, such as passive
buying at one point and support at a previous level of
buying imbalance at another.
Understanding these market rotations through order flow
analysis can help you better understand the market.

Markets are driven by shifts in supply and demand, with

prices rising when there is more buying than selling and
falling when the reverse is true.
Although it seems simple in theory, it is more complicated
in reality.
The market continues to rise until institutional players
take profits and start selling, at which point the market
may change direction.
Institutions are the major players in the market and will
keep buying until they believe the supply at lower prices

48
has been depleted, but they won't support the market just
for the sake of buying.

The change in supply and demand affects market

movements.
If there is more buying than selling, prices rise.

On the other hand, if there is more selling than buying,

prices fall.
Although this may seem simple, the actual process is
complex.
The market continues to rise if institutional players are still
expecting higher prices and are not yet selling their
positions.
In contrast, in a down market, there is little support to
hold up prices as a result of a lack of buying.
This is why markets fall faster than they rise.
For successful trades, it is best to follow market
movements and buy when others are buying and sell
when others are selling. In the past, locals in trading pits
used to observe the market and act when institutional
money was entering to move the market. They joined in
on the moves. The key is to follow market movements.

Prices go up until:
1. Buyers become unwilling to buy.
2. Buyers run out of buying power.
3. Buyers are overwhelmed by sellers.

Prices go down until:

1. Sellers become unwilling to sell.
2. Sellers run out of inventory.
3. Sellers are overwhelmed by buyers.

49
To be a successful trader, it's crucial to understand the
forces driving price changes in the market.
The activity of buyers and sellers can greatly impact the
market and determine if it's better to be a buyer or seller.

An order flow chart provides insight into why the market is

moving in a certain direction, allowing us to react quickly
and take advantage of opportunities.

Importance of Volume.

Volume is a crucial tool for us, but it is often

misunderstood.
Conventional analysis of volume focuses on total volume
traded.
Order flow analysis breaks down volume into the amount
traded on the bid and offer sides, providing traders with
insight into whether buyers or sellers are aggressive or
passive.
Combining volume and price analysis helps us determine
the current state of the market and if supply and demand
is imbalanced.
Traditionally, volume analysis is done after the fact and is
used to confirm a trend.
Technical analysts consider volume as a gauge of the
trend's strength.

I also previously struggled with understanding the value of

volume in the market.
But i realized that just looking at total volume was not
enough and couldn't distinguish between the volume
traded at bid or offer.
Therefore, to truly grasp the momentum in the market, it's
crucial to analyze volume relative to price.

50
Volume plays a significant role in determining the strength
of a trend in the market, as it helps to understand the

To summarize, when analyzing volume in a market trend,

it is important to consider not just the total volume traded,
but also the breakdown between volume traded on the
bid side versus the offer side.
In an uptrend, if volume is increasing on the offer side, it
indicates buyers are being aggressive.

In a down trend, if volume is increasing on the bid side, it

shows that sellers are getting rid of their supply.
In a sideways market, volume should be absorbed by the
marketplace evenly.
Order flow volume analysis looks at the amount traded at
a price in a time frame and provides a clearer picture of
market strength compared to traditional charting methods,
which only measure volume based on time.

Low volume in an upward moving market usually indicates

weakness.
This could be because institutional investors are not
participating in the upward movement, meaning prices
won't likely be sustained due to an imbalance of supply
and demand.
If only retail investors are driving the market with little
volume, it's not a positive indicator.

When the market is in a downtrend, it's a sign of

institutional participation if there is strong volume, as
institutions will be selling off their supply to buyers.

In a downtrend, temporary up moves may occur, but if the

volume is low, it shows that the institutions are not buying

51
into the weak market.
A downtrend may continue, but the trend could change
quickly if the selling pressure from institutions subsides
and the volume decreases.

For the market to turn from a downtrend to an uptrend,

buyers must come in and take control from the sellers,
usually resulting in a rise in volume.

52
Chapter 2

Institutional Order Flow.

53
54
Understanding Orderflow.
Order flow trading is a method of analyzing and
interpreting the buying and selling activity of market
participants.
It is based on the belief that the market is driven by the
actions of these participants, rather than traditional
technical indicators or fundamental analysis.

Order flow traders focus on analyzing the flow of orders

coming into the market, which includes the size, direction
and timing of these orders.
By understanding this flow, traders can gain insight into
the underlying Supply and Demand dynamics of the
market.

One of the key benefits of order flow trading is that it

allows us to identify market imbalances and potential
turning points in the market.
This is because order flow analysis can reveal where the
big players, such as institutional traders and hedge funds,
are placing their orders.

Another advantage of order flow trading is that it can be

used in combination with other trading methods such as
technical and fundamental analysis.
This allows us to gain a more comprehensive
understanding of the market and make more informed
trading decisions.

55
However, it's important to note that order flow trading is a
complex and advanced trading method that requires a
high level of market knowledge and experience.
It also requires special software and tools to analyze the
order flow data. And that i will explain later on.

In summary, order flow trading is a method of analyzing

the buying and selling activity of market participants to
gain insight into the underlying supply and demand
dynamics of the market.
It can provide traders with a unique perspective on the
market and help identify market imbalances and potential
turning points.

What are the benefits of Orderflow Trading?

Insight into market dynamics:

Order flow analysis can provide insight into the underlying
supply and demand dynamics of the market, and can help
identify potential turning points and market imbalances.

Understanding of large market participants:

Order flow analysis can provide valuable information
about the actions of large market participants, such as
institutional traders and hedge funds, and can help traders
identify patterns and trends in the market.

Improved trade execution:

Order flow analysis can help traders identify key levels of
support and resistance, and can provide insight into the
behavior of large market participants. This can help

56
improve trade execution and increase the chances of
success.

Better risk management:

Order flow analysis can help traders identify potential
buying and selling pressure, which can aid in risk
management by indicating when it may be appropriate to
take profits or cut losses.

Complement other methods:

Order flow trading can be used in combination with other
trading methods such as technical and fundamental
analysis. This allows traders to gain a more comprehensive
understanding of the market and make more informed
trading decisions.

Identify Market Inefficiencies:

Order flow traders can identify inefficiencies in the market
that other traders might miss, this can provide
opportunities to take advantage of these inefficiencies,
and thus increase the potential of profits.

Benefits of trading Order Flow.

Order flow is a way to see how buyers and sellers are

behaving in the market.
It shows how aggressive they are and can give you insights
into the market psychology.
Some people try to use mathematical formulas to predict
the market, but it's actually the emotions and behavior of

57
buyers and sellers that drive the market.
Beginning traders should practice and understand order
flow to improve their trades.

Big traders, like those who work for banks and big
companies, want to make money by being on the right
side of the market.
They have to be right a lot because their jobs and good
lives depend on it.
They might have information that other traders don't have.
They use their brains and not just computer programs to
understand the market.
Order flow helps these traders see what's happening in
the market before others do.

Order flow helps traders make better decisions by

removing the randomness from their trades.
Instead of relying on technical indicators, which are based
on past results and don't have logical reasoning, order
flow helps traders understand the market by showing how
buyers and sellers are behaving.
This helps traders to avoid choppy markets and make
more informed decisions.
Order flow is a tool that helps traders make better
decisions by showing them what is happening in the
market right now.
It helps them understand why prices are moving in a
certain direction and how other market participants are
behaving.

This information can help traders quickly adapt to changes

in market conditions and take advantage of opportunities
as they arise.

58
Order flow provides a clear and precise way to measure
risk.
It helps traders understand when to exit a trade that is not
going in their favor, and when to let profitable trades
continue to run.

This is particularly useful because it can be difficult for

traders to know when to exit a trade using traditional
technical indicators or fundamental analysis alone.

Order flow also helps traders identify changes in market

conditions and assess whether they should adjust their
positions accordingly.

It also helps to make trading more organized and less

anxiety-inducing.
Traders typically aim to find trades with low risk, but by
using order flow, it is possible to identify trades that are
less likely to cause stress as well.
This is because order flow provides clear entry and exit
points for trades, allowing for a more structured approach
that reduces uncertainty and uncertainty.

Order flow analysis is a way of understanding how and

why certain decisions are made in the market, whether it
is in trading or in everyday life.

It involves looking at the flow of orders and transactions to

determine the value and demand for a particular product
or service.
Just like in real life, we often make decisions based on
value and need, whether it's choosing which gas station to
fill up at or deciding to buy a new phone on sale.
We use order flow analysis without even realizing it.

59
Order flow analysis is the process of understanding how
and why buyers and sellers make decisions in a market.

This is similar to how you would make a decision when

buying a car.
You have a specific idea of what you want to pay for a car
and the dealer has a specific idea of what they want to sell
the car for.
Both of you would then negotiate the price until you come
to an agreement.
The same thing happens in the fashion industry.

Clothing stores constantly have to watch for changes in

fashion trends and adjust their inventory and prices
accordingly.

If a store does not make these changes quickly enough,

they may be forced to sell items at a loss.
Order flow analysis helps to understand and predict these
changes in market behavior.

The markets, like the weather, are constantly changing

and reacting to outside factors.
Just like how your body temperature fluctuates, the prices
in the market also fluctuate.
If a price is too extreme, it may indicate that the market is
not healthy.
In the same way, market predictions also depend on
various factors and it's important to look at what is
actually happening in the market to understand its current
state.

Order flow analysis is used by large institutional traders,

such as hedge funds, to minimize the impact of large

60
trades on the market.
They will use various methods to avoid causing significant
fluctuations in the price of the asset they are trading.
The information from the order flow can give insight into
the market's overall sentiment and confirm market trends.
The main benefit of order flow analysis is not in making
precise predictions but in understanding the market's
psychology.

In the most basic sense, market movement is determined

by the actions of buyers and sellers.

It is not solely based on mathematical formulas or

technical indicators.
The market changes direction and makes turns when there
is a shift in the balance between Demand and Supply,
when prices become too low or too high, and when big
buyers or sellers enter the market.
Understanding these factors, as well as market psychology,
can be gleaned from studying order flow charts.

I use order flow analysis to understand the actions and

decisions of market participants.

My goal is to discern their positions, such as whether they

are long and struggling or if a large player believes the
market is overvalued or undervalued.
By analyzing supply and demand imbalances through
volume analysis and studying the patterns of orders
entering the market, I can gain insight into the market's
future direction and make more informed trading
decisions.
While the market is not always predictable, order flow
analysis can help identify clear patterns and trends.

61
Order flow is a method of analyzing the behavior of
market participants by observing the flow of trades.
It requires a trader to use their discretion and look for
patterns in the order flow, such as aggressive buyers or
weak highs.

This method allows a trader to identify repeating patterns

in the market and form an opinion about the current state
of the market and potential future direction.
It also helps a trader understand who is in control of the
market by observing the struggle between buyers and
sellers.
However, it's important to note that while order flow can
provide valuable insights, it's not a foolproof method and
traders should always have a set of rules to follow when
trading with order flow.

Order flow analysis is a technique for understanding

market activity by observing the flow of trades, which can
reveal information about supply and demand.

It is a discretionary approach to trading that allows traders

to identify patterns of buying and selling activity and make
more informed decisions about when to enter or exit the
market.

I have found that the principles of order flow analysis

remain consistent over time, providing traders with a
deeper understanding of market dynamics and the ability
to stay out of the market when conditions are not
favorable.

In order to be successful in the market, it is important to

understand how to "read" it.

62
This means being able to identify where buying and selling
is happening, as well as where solid highs and lows have
been established.

By analyzing the order flow, a trader can determine the

direction of the market, and position themselves
accordingly.
Instead of trying to predict where the market will go, it is
important to let the market indicate its own direction and
make decisions based on that information.
This approach can help traders avoid the common mistake
of being on the wrong side of the market, and increase
their chances of success.

Order flow analysis can be used in any futures market that

experiences a significant amount of daily trading activity.

Different techniques and approaches can be employed

depending on the specific characteristics of the market.

For example, markets that see large fluctuations in price

and varying levels of volume, such as currency futures,
may have unique characteristics that require specific
strategies.
Similarly, markets that have less price volatility but high
volume, like interest rate futures, may have their own set
of characteristics that need to be considered.
Despite these differences, many of the underlying
concepts discussed in order flow analysis can be applied to
both types of markets.

63
CME Data and contracts.
Before I go deeper into the Orderflow tools and how we
can use them in our trading, I will first tell you a bit more
about the CME and the contracts.
Because this is also very important to know before we can
continue.

As I think you know, we need the CME data to get the real-
time information.
Ofcourse we also need the CME to use the Orderflow tools.

What are CME contracts?

Designated Contract Market that offers products subject

to CME rules and regulations, was established in 1848 as
the world's first futures exchange based in Chicago.

CME Group Market Data is a leading source for cash,

futures and options data across interest rates, equities,
agriculture, energy, metals and foreign exchange.

CME Group is a leading provider of financial and

commodity futures and options trading. They operate a
number of exchanges, including the Chicago Mercantile
Exchange (CME), the New York Mercantile Exchange
(NYMEX) and the Commodity Exchange (COMEX). CME
Group offers a wide range of futures and options contracts
across various asset classes, including interest rates, equity
indexes, foreign exchange, energy, agricultural
commodities and metals.

64
CME Group's contracts are standardised and traded on
regulated exchanges, which provides traders with several
advantages.
For example, standardization ensures that all traders are
on a level playing field and that the terms of the contract
are known by all participants.

Trading on regulated exchanges also means that there is a

central counterparty that guarantees the trades, which
reduces the risk of default.

CME Group also offers real-time market data and analytics

through its CME DataMine platform. This platform
provides access to historical and real-time market data for
CME Group's futures and options contracts, as well as
other market data such as news and earnings reports.
This data can be used by traders to gain insight into
market conditions and to make informed trading decisions.
CME Group's contracts also offer several benefits for
hedging, which is a risk management technique used to
offset the potential losses from an adverse market
movement.

Due to the standardization and large trading volume of

CME's contracts, they can be used as an effective tool to
hedge against price fluctuations in various markets.

In summary, CME Group is a leading provider of financial

and commodity futures and options trading.
They operate a number of exchanges and offer a wide
range of futures and options contracts across various asset
classes.
CME Group's contracts are standardised and traded on
regulated exchanges, which provides traders with several

65
advantages such as standardization, reduced risk of
default and the ability to hedge.
CME also offers real-time market data and analytics
through its CME DataMine platform.

We know that we use different names in futures than in

forex.

For example, the EURO is the 6E and it is similar to the

EUR/USD chart.

Let me give an example about the worth of 1 contract on

crude oil.

“The value of a CME contract on crude oil is determined

by market forces such as supply and demand, geopolitical
events, and economic conditions. It is based on the price
of the underlying asset, which is West Texas Intermediate
(WTI) crude oil. The contract size is 1,000 barrels and its
value can fluctuate daily. The worth of a CME crude oil
contract can be calculated by multiplying the current
market price by the contract size (1,000 barrels). It's worth
noting that the value of the contract may not be equal to
the total value of the underlying assets as there are other
factors such as fees, margins, and financing costs that
affect its worth.”

Let's get the source from the CME group and I'll give you
some additional information on the 6E.
I'll do the same with some others later on.

This way you will also see exactly what a contract is worth.

66
6E Euro

Contract Unit: 125.000 Euro. (The contract unit is the

quantity of the product delivered for a single contract.)

67
CL Crude Oil

Contract Unit: 1,000 Barrels. (The contract unit is the

quantity of the product delivered for a single contract.)

68
And finally I will also show gold GC.
All this information comes from
https://www.cmegroup.com/ and you can also find
everything else there.

69
GC Gold

Contract Unit: 100 troy ounces. (The contract unit is the

quantity of the product delivered for a single contract.)

70
Source: CME Group.

71
Volume and Delta in depth.
First I will explain a bit about what the delta is exactly.
The term delta was introduced in trading in the year 2002
together with the footprint charts.
But especially at that time it was still very difficult as a
trader to get the real time data, which was mainly devoted
to a small selective group on the market.
But fortunately, today it is a lot easier to use the real-time
data that we mainly need to trade with Order Flow.
And this information can help us as retail traders get a lot
closer to the professional level.

Delta order flow is the difference between the market

buys and market sells at each price (Footprint Delta) in
each candle/bar (Bar Delta) or for a period of time
(Cumulative Delta).
So if delta is greater than 0 you have more buying than
selling pressure.
If delta is less than 0, you have more selling than buying
pressure.

So Delta is calculated through subtraction of the volume of

contracts traded at the Bid price from the volume of
contracts traded at the Ask price.
The delta is the difference between the market buys and
the market sells at each price. (Footprint Delta) in each
candle/bar (Bar Delta) or for a period of time (Cumulative
Delta).

72
Delta is calculated through subtraction of the volume of
contracts traded at the Bid price from the volume of
contracts traded at the Ask price.

The negative Delta reflects a higher volume of aggressive

sells at the Bid price in the result of trading of aggressive
sellers.
And with the positive delta it is of course exactly the other
way around.

So just to make a little reminder for you.

Volume of trading at the ask price and Volume at trading
at the bid price = Delta.

The delta is therefore also calculated by the bid price, the

ask price, the most recent price which was traded, the
volume of the most recent trade and the time of execution.
And remember that the Delta is calculated as the
difference between the volumes of market buys and
market sells.

The Delta calculation by market, or as they say aggressive,

orders is explained by the fact that namely market orders
move the price in the market. If we go deeper into this
there is no need to take into account volumes of limit
orders for Delta calculation. I mean to execute a trade, a
market order for buying 25 contracts would need limit
orders for selling 25 contracts and it makes no sense to
duplicate these volumes in the Delta values.

73
There are also multiple types of Delta’s you can use.
If you like it, take a look at it, but in this book I will only
explain more about the Delta that I use in my trading.

Now that we've covered all the information we need to

know about the delta, let's take a closer look. And
especially the way I look at this handy tool.

The volume and the delta is a very handy tool and can
show us exactly where the volume can be found in the
market.
When we open the footprint chart, in my case I use the
clusterdelta software, but other software often also shows
a bar with volume delta and sometimes even more.
I'll post an example below.

Here's an example of what the volume and delta looks like.

Study this for yourself.
I think there are some points that you notice about the
volume and the delta don't you?

74
We see higher and lower volumes and negative and
positive delta.
Now let me dig a little deeper into this.

75
Above in the image I have already explained what I see
here in the volume and in the delta.
The moment the price enters the Supply zone, we see a
number of changes in the volume and in the delta.
By the way, we see volume at the top and the delta below.

I zoomed the volume and the delta in so that you can

clearly see what happened when the price entered the
Supply zone.

Let me show you another example.

The image above is another perfect example.

76
See how the volume suddenly becomes very high? With
still a lot of positive delta.
At the moment I am of course looking for a good Sell entry.
Why do you think this gives me extra confirmation?

Yes, the volume that suddenly becomes very high when

the price enters the zone. And the high positive delta
which gets lower and lower afterwards.

But pay attention to the following image!

Here we see the final result. Negative delta and price

comes down from the Supply.
This trade, of course, eventually took my profit.

77
I'm going to tell you and show you a little more about the
delta in the clusters.
In this example I show the charts of Atas.

78
I have already explained some things in the image, but
here we see the BID X ASK with the delta colored.
With Cluster delta this already happens automatically, but
with Atas you can set this on the left side.

So if we see a cell colored green, this represents a positive

delta and the greener the color, the more positive the
delta is. For a red cell this means a negative delta and the
redder the cell the more negative the delta is.

In the example above we see that the price moves sharply

downwards, but we see that at a certain point the delta
indicates positive while the price continues to fall.
But this is understandable and I will explain to you why we
see this!

We can explain this inconsistency by the fact that a very

large seller who opened his market sells and also

79
protected them with sell limit orders was present in the
market at this time.

And the result of this action is that all the buys that took
place at that time by aggressive buyers who in turn tried
to resist the falling price on the protective limit orders of
the "big" seller.
By trading this way, the big seller didn't have to open big
sell trades to push the price in the right direction.

So his sells were open on protective limit orders which

completely swallowed up all the buyers.
We also see that price continued to fall.
So simply put, the buyers have not protected their buys
with buy limit orders or have simply bet too little to
outshine the seller.

To explain it briefly and clearly, we do not immediately see

the limit orders on the delta, which can sometimes cause
us to see a strongly negative delta, but the price does go
up. This can then be explained by the high limit orders that
protect the price from falling. We do not immediately see
this in the delta and that is why we see a different picture
at that time.

When we encounter situations like this in the market,

realize that we are often dealing with a large institutional
player in the market "the whale". Because as we all know,
only such a large trader can bet such large amounts to
protect his positions. And this again shows how important
it is to use the order flow tools in your trading.

Note: “Volume is a measure of the number of shares,

contracts or other units traded in a financial market over a

80
certain period of time.
Delta is a measure of an option's price sensitivity to
changes in the price of the underlying asset.
In trading, delta can be used to manage risk and determine
potential profits or losses.
High volume in a stock or market can indicate high liquidity
and greater potential for price movement, while high delta
options are more sensitive to price changes in the
underlying asset and may have a greater potential for
profit or loss.”

81
Footprint clusters and orders.

I think that before you start reading this book you

probably already know a few things about the footprint.
But before we continue with this topic, I would like to tell
you some extra information about the footprint. And then
I will tell you all about how I use it myself in my trading.

Footprint charts are gaining more and more fame among

traders.
Although it is often used when trading, for example, stocks,
you can also use the Footprint charts in forex.

Let’s start at the beginning.

Footprint charts were created as a trademarked product
by the Market Delta company in 2003.
These went bankrupt in 2020 and therefore no longer
exist.
Because it was a trademark, we see the Footprint charts in
many names such as Bid/Ask profile / Cluster charts /
Numbered bars e.g.
You’ve probably heard of this before.
The names may be different, but the principle remains the
same.

The footprint charts show you the volume being traded at

a precise level. The market orders.
Compared to the Depht Of Market (DOM) which shows
the Limit orders.
In the case of the Footprint charts, it is mainly due to the
orders that have already been executed in the market.

82
So we can get very strong information from this where the
buyers and sellers were interested and where, for example,
the absorption took place.
And of course not to forget where the most volume was.
If we compare this again with many other indicators, the
big advantage is that the foodprint charts show the real-
time information.

Let's even look at a cluster and then I'll first explain to you
what exactly you can see in this cluster and what explains
everything before we go further.

83
In the previous image you can see where the BID and
where the ASK side is.
But in order to understand this a little better, I will now
give you some further explanation.

In the second cluster we see a 213x0 at the very bottom,

which gives me a very nice buy indication.
But why exactly, I hear you thinking.
Well that's because we see a very large imbalance here.
The 213 is on the BID side, also known as the BUYERS side.
And on the other side we see the 0 on the ASK side also
known as the SELLERS side.
This actually means that at the bottom of the cluster /
candle there are 213 buyers but 0 sellers so the price will
most likely go up because it becomes "rare" there are
many more buyers than sellers so it automatically
becomes more valuable.
(Supply & Demand.)

In the cluster before we see the 0x3 at the top.

It is of course an imbalance, but a very low one.
I usually do nothing with this and really look at the
imbalances of 15 or higher.
But it is a nice example.
So here we see a 0 on the BID side BUYERS and a 3 on the
ASK side SELLERS.
But what exactly does this mean?
Well that there are 0 BUYERS who are willing to buy for
that price but there is still an offer of 3 (very low of course
but it's an example) So the SELLERS have to drop the price
to be able to sell it.

84
I think it is now a bit clear how I see the clusters exactly.
Which is also nice to now show how this trade that I took
of course eventually went.

85
Above we first see the normal candlestick chart. All the
way down in the lower candles was the 213x0. Just look
at the following image.

86
Here we see the footprint chart/clusters.
See how the price has moved up after that high imbalance
at the bottom?
In this case there were a lot of buyers and the sellers
drove the price up.

In this example we are talking about crude oil.

So because there was suddenly so much more demand for
oil, the sellers were able to ask a lot more for the oil and
we see that reflected in the charts.

87
I have another very nice example for you, just look at the
previous footprint chart. We see here that price enters the
level with a high imbalance. This level is formed by a high
imbalance on the left side. Just look at the following image.

88
See what I mean all these high imbalances together made
a very nice Supply zone. So price came back in later with
another high imbalance which we have seen in the first
image. I therefore do not have to explain to you that this
trade has become a very nice win.

Note: ”Footprint clusters and orders are concepts used in

trading to analyze market activity and make informed
decisions.
A footprint cluster is a visual representation of market
activity in a specific time frame.
It shows the distribution of orders and trades in a financial
market, and can help traders identify areas of supply and
demand.
Footprint clusters can be used to track the movement of
market participants, including institutional traders and
algorithmic systems, and can provide insight into market
trends and potential future price movements.
Orders, on the other hand, are instructions given to a
broker to buy or sell a security at a specific price or better.
Traders can use orders to enter or exit positions, manage
risk, and take advantage of market opportunities. There
are different types of orders, including market orders, limit
orders, and stop-loss orders, each with its own set of
characteristics and advantages.
In trading, footprint clusters and orders are often used in
conjunction with technical analysis and other tools to gain
a deeper understanding of market dynamics and make
informed trading decisions. By analyzing the distribution of
orders and trades, traders can identify potential entry and
exit points, assess market sentiment, and make decisions
based on their individual trading strategy.”

89
Imbalance / Large imbalance levels.

Imbalances in the footprint chart refer to the difference

between the buying and selling activity in a particular
market.
The footprint chart is a type of order flow chart that
displays the volume of trades at each price level, and the
imbalances are represented by the difference in the
number of buy and sell orders at each price level.

Imbalances can occur when there is a disproportionate

amount of buying or selling activity at a particular price
level.

For example, if there are more buy orders than sell orders
at a certain price level, this indicates a buying imbalance
and can signal that demand for the asset is stronger than
supply.

Conversely, if there are more sell orders than buy orders

at a certain price level, this indicates a selling imbalance
and can signal that supply is stronger than demand.

Imbalances can provide valuable information to traders, as

they can indicate potential trends and market conditions.

For example, a buying imbalance can signal that the

market is bullish and that the price of an asset is likely to
rise.

90
Conversely, a selling imbalance can signal that the market
is bearish and that the price of an asset is likely to fall.

If there is a significant buying imbalance at a particular

price level, this can indicate that there is significant
demand for the asset at that price, and that it may act as a
level of support.
Similarly, if there is a significant selling imbalance at a
particular price level, this can indicate that there is
significant supply at that price.

In conclusion, imbalances in the footprint chart refer to

the difference between the buying and selling activity in a
particular market, and they provide valuable information
to us traders.

Traders should always keep an eye on the imbalances in

the footprint chart to make more informed trading
decisions.

Understanding the force behind an imbalance is a very

critical point where the big major players are active “The
whales” and how big the order actually is.
Are they that low and will the price move i.e. the reaction
not very violent relatively low orders.

We will explain these two core concepts of low and high

imbalance in more detail in this section.
We will take 6b gbpusd the Pound and 6e the Euro eurusd
as an example.

They are similar in their characteristics, although the Euro

is of course traded with much higher volume than the
Pound.

91
It certainly does not matter any less because there is a lot
of power behind all those large orders and large levels of
imbalance.

For a large level or imbalance we are often looking for

large numbers and these numbers must be greater than
0x15 at least on the bid or ask side, so there must be a
high number against it “0x15 = 15 contracts x 62,500 on
the pound” Thus equivalent to almost one million British
pounds word of contracts.

As said a high trade 0X15 in this case on the ask side is the
minimum what we would want to see.
And horizontally ofcourse the opposite because then it is
worth for a possible trade.
And or an exchange of a large whale willing to trade at
that level to sell an large number of contracts to move the
market in there direction.

As explained on the 6b 0x15 at least everything below that

becomes less interesting because the moves are often
smaller.
And we still want to put our chances as high as possible
and actually follow that big whale move.

Moves from 0X20 0X30 we call extreme imbalance in price,

these moves are often characterized as with a lot of force
behind a move and if we read it horizontally in the cluster
chart and a piece vertically as price arrives at that high
imbalance.
It is important to record and understand how price reacts
to these levels this is best done on the very lowest
timeframes such as m1 and m5.
To monitor m1 the heartbeat of the market accurately

92
depicts how the whale will enter the market.
You will see that each cluster gives a minute of data you
will see more imbalances in price on the minute than on
the 5min because of course there is more than 4 minutes
difference in this.
With high precision from minute to minute you will see
how price is sucked up and how the orders with these
numbers enter the market.
Also you will see how the icebergs orders are formed how
price moves as it moves in its purest form so i use a
combination of the minute and 5m and 15m for direct bias
of that possible move.
In a wave of 15 minutes or minutes as an example, we find
15 candles per minute.

I'll draw an example below again of what that looks like

and how you see the order flow coming in here with
relatively high numbers coming off of a high number and
where we're approaching with a high number both
vertically and horizontally in price.

93
94
As you have seen how price arrives at a level and then
enters it with a high number again.

The extreme imbalance the 0x30 or higher at the bid or

ask side for e.g. the Euro each contract on the Euro is
worth 125,000 euros 0X30 in this case will be an order of
125,000 x 30 contracts = 3,750,000 million Euros worth of
contracts.
They are not called the extreme imbalances in price for
nothing so we have a large whale here pumping millions
worth of market orders into the market on the footprint.
So we are not talking about the limits orders here yet
because it will probably be a bigger move but more about
this in chapter DOM in Depth of Market.

95
Realizing yourself and now reasonably understanding how
and where these orders are located makes it extremely
powerful.

A small lesson: Look for them on the minute and m5 in the

footprint chart and see if you can find at least 3 recently.
You can’t find them probably not every minute but when
they do they are usually very big sharp and powerful
moves.
Because these need to be filled if enough orders have
been collected and enough buying or selling power is
contract wise.
The price will be ready to start its journey of laying
imbalance in price to the next imbalance.

Distinguish between a large order and a small order.

33x0 on the bid or 7x0 on the bid, a difference of 23

contracts 33x0 on the Euro 6E a value of 33 x 125,000
Euros, or 7 x 125,000 Euros.
you can imagine that the impact of a 30 contract order has
a much greater impact and that the 7X0 will often be a
small move.

More often said the extreme imbalance in price the large

contract price movements are what we look for and what
we want to flow with.
To give them a good chance of success these orders are
often on ultimate edges major lows and highs good Supply
or Demand levels where one party is willing to sell or buy
for the right price.

Make sure you make a calculation for every trade

sometimes.

96
Is this trade true is there a large party whale financial
institutions active is it about 15 20 or 30 contracts or
higher?
And what value is attached to it.

Make sure to see if it's on the bid and ask major low or
high or a valid supply demand level move into the
opponent and watch millions traded per trade.

This piece is of course based on reality coincidentally we

just caught another trade of 33x0 on the bid.
Calculated a transaction of over 4.1 million euros and we
also saw certainly just below this order where price spiked
50 contracts on the DOM these too were triggered on the
bid and price spiked a good 30 pips.

Great when you write like this and actually see it happen
before your eyes.
To be able to execute a trade with so much confidence
remains a unique experience.

A lot of patience is what it takes because you really only

want to have the large Whale orders and the extreme
imbalances, the time of waiting is worth it and it also
differs in time because you also see when this order flows
in, and when the moment is to take action.
Sometimes a matter of a tick a minute or 5 minutes but
sometimes it also takes half an hour to an hour to see the
suction of a large whale order come in.
Patience is always rewarded.

97
98
99
Many examples will follow as understanding and seeing
the concept of the contracts these visuals will become a
blueprint in your mind.
You will see the charts in a whole different era.

Note: “Imbalance and large imbalance levels refer to the

difference between buying and selling pressure in a
financial market. In trading, imbalances can be an
important indicator of market sentiment and can help
traders identify potential market trends and opportunities.
An imbalance occurs when there are more buyers than
sellers or more sellers than buyers in a market. This creates
a demand for a security that is greater or less than its
available supply, which can drive prices in a specific
direction. Imbalances can be caused by various factors,
including news events, economic data releases, and
market speculation.
Large imbalances, also known as large volume imbalances,
refer to particularly pronounced imbalances in a market.
These imbalances can signal strong market trends and
potential price movements, and can be used by traders to
inform their trading decisions.”

100
Psychological price levels EQL lows /
highs value area.

I wrote a lot about it in my other work we talked about it

regularly and i even contributed a lot to wyckoff theory.
So do you remember the great springs and upthrusts?

Many of you will have read the book trades about to

happen by author David H. Weiss.

A great powerful Wykcoff book full of praise and great

Wyckoff insides the great master brain behind the Wyckoff
theory is of course Richard Wyckoff.

So to make a long story short we owe a lot to him and

their insides the edges of the market aka those caused by
springs and upthrusts.
Order flow traders won't see it any other way or at least
its interpretation.
So let's call them the pyschological price levels for the sake
of convenience the absolute edges of the market depicted
in the software what we use.
Value area's highs and lows in macro and micro levels.

For convenience the macro levels is everything higher than

4 hours (4h) daily weekly and lower the hour m30 m15 m5
m1 etc the micro levels.
Also often referred to as the continuation levels within a
price range determined from a value area low or high on a
edge.

101
By determining the same levels it is good to understand
where the liquidity is actually located and where large
institutions are willing to buy or sell at the right price
levels.
Equal highs and lows this is often the start of a new price
cycle for a week or several subsequent ones, a
continuation or a reversal.

By applying the Order Flow and especially the market

profile we have an indication where this climax takes place.

See an example below of gold on an hour time frame

Where the lows are tested time and time again and where
we see a clear continuation, on value area lows areas

102
against that we also see that the highs serve as pullbacks.
Wyckoff speaks a test of the highs with a penetration of
these highs of an upthrust up and a springs a test of a low
vice versa.
This is self-explanatory if you read yourself a little deeper
into the Wyckoff theory i am sure that many of you have
already done this.
As it is also clearly explained in all my other content how
to apply the Wyckoff theory this piece is purely to once
again remind yourself of these levels and understand how
to recognize the end of the price range.

So the footprint also comes in handy here because we

have the opportunity to look deeper into these springs
and upthrust from the higher timeframe perspective, but
also the lower

These pyscholigcal levels are used to get the best price, we

often see here that the DOM in Depth of Markets attracts
large orders because these limit orders are located around
the edges of these levels.
And the round numbers also often come back here and
this process repeats itself.
The big Whale want the best price and will do everything
to defend it time after time with limit orders and or
market orders.

See this example on gold now on the m10 micro

timeframe how the big whales defend this ultimate low.

103
Price pierces the low but then pulls back hard in Wyckoff
terms a perfect ‘’wyckoff spring’’ on a value area lows or
an equal low market profile is a great tool here.
It provides insight into where the most volume is at that
moment you also see that it is around the same level and
based on large whale orders and data of these large
players financial institutions.

So can we validate that there are really big orders here

and that these whales are willing to dump their market
orders or limit orders here to drive price in the other
direction than most retail trader thinks or sees.

If we then take the footprint and zoom in deeper on this

value area low again on a micro time frame.

104
That a very large climax arises at this low and that the
footprint is an indispensable tool here.
Because in combination with the footprint you can see
that there are actual market orders flowing in with
contracts higher than 0x15 on the bid.
15 contracts per candle each bar here gives 5min or
information it is the 5 minute micro time frame.
Clear picture that this spring is tested very nicely and then
the price breaks up.
And where we also see several market orders flowing in, in
every 5m candle and then the continuation follows.

Another great example I'm going to show you on Crude Oil

also a great asset and perfect example on a sell order.
Scenario equal highs see the example it speaks for itself.

105
Here we see a clear price range of equal highs and lows.
Crude oil often features clear powerful price ranges from
low to highs with great moves in between.

If we now shift to a lower timeframe m5 micro timeframe

to the footprint we see again that price spikes and pulls
back and again gives a very high imbalance in price.
The highlighted at the two tops we see a 0x22 and a 0x33
on the ask side whale sell market orders enter the market.
with a valid upthrust /liquidity move confirmed on the
delta and volume, see example.

106
Also we see that the COT changed “the Commitment Of
Traders” the numbers are getting higher on the sell side
the demand side.
Buyers are getting exhausted and most of the buy orders
are running out.

Price does not break the highest level and reject hard.

Within such a price range we also find the micro zones,

these are often from my own testing and interpretation
the continuation zones within a larger macro price range
and or Supply and Demand levels.

As said micro zones are usually the m1 m5 m15 etc.

And are located within such a large macro price area.
These zones are characterized by a hard move away or a

107
good legout the first candle from the base, often with a
nice match at an imbalance level within this price area.
We see of course the larger moves but also the smaller
pullback this will be repeated until there is another good
level work hit for a possible shift in price on a valid area
low or high as an example.

We do one last example within this chapter on the 6b

GBPUSD we have then completely explained 3 different
assets in depth.

On this example we see 6b on an equal high and a value

area high match on the hour timeframe.

108
Characterized as an absolute high with a high and extreme
imbalance on the footprint 0x6 0x41 on the ask side / sell
side.

Where price then aggressively trades away and comes

back again for a final test where again we can see sellers
on the ask with a 0x31 ask sell side worth many millions of
contracts on the GBP.
Now is the time to strike the sell orders that hit the market.
We have a high volume and negative delta.

Again this is a perfect example of how price gives

extremely high imbalance and a tank of whale orders on
edges.

109
Thus an important one to wait and see how price reacts
from tick to tick to the lower timeframes on edges like this.
1m and m5 are fine here in micro timeframes to give you a
perfect picture when a big whale enters the market.
Or when price might break or gives a continuation in price
ranges.

Note: “ Psychological price levels, equal lows/highs, and

value areas are important concepts in trading.
Psychological price levels refer to round numbers, such as
$50 or $100, that have a psychological significance to
market participants. Traders may use psychological price
levels to make informed trading decisions, as these levels
can influence market sentiment and drive prices in a
specific direction.

110
Equal lows and highs refer to levels at which a security has
reached the same price on two or more occasions.
The value area is a range of prices in which a security
traded at an equal volume during a specific time frame.
In trading, psychological price levels, equal lows/highs, and
value areas are important considerations that can provide
valuable insight into market activity and help traders make
informed decisions.”

111
The COT.

I am not discussing the report released by the CFTC that

shows the distribution of open positions in futures
markets.
That report serves a different purpose.
However, when using charts for order flow analysis, each
bar includes information on the Commitment of Traders
(COT).
The COT represents the price level within the bar where
the most trading activity occurred from both buyers and
sellers, and it is a measure of the amount of trades
committed within the bar.
Keep in mind that order flow analysis focuses on the
details within each bar, and this information is not visible
on regular bar or candlestick charts.

112
Do you see the black box inside each candle? We call that
the COT.

I will also include an example of the COT of the cluster

delta chart.

113
We can also see the COT very nicely in the cluster delta
chart.
Just don't forget to set this to true when you open the
footprint chart.

The Commitment of Traders (COT) allows you to identify

where the most trading activity occurred within a bar,
whether it was at the top, middle, or bottom.

This information is crucial because it provides insights into

the market dynamics within the bar.
The COT can reveal where demand exceeded supply or
vice versa, as one side will be more prominent.
The COT provides information that traditional bar or
candlestick charts cannot, by giving you a quick idea of
where the most activity occurred, which can hint at any
unusual activity.

114
In the chart in the picture before, the Commitment of
Traders (COT) is located at the bottom of the bar, which
closed near its high.
When the majority of trading activity occurs near the
bottom of a bar that closes higher, it typically indicates
that there are strong passive buyers present.

This particular chart shows evidence of both strong

passive buying as well as buyers who are willing to
purchase all the supply offered by other sellers.

Usually throughout the day we usually see the COT slightly

in the middle of a candle. When this is completely or
almost above or below in a Supply or Demand zone, this
can give you an extra indication for a good trade.

115
In the example , at point 1, the Commitment of Traders
(COT) is located near the top of the bar and the bar closed
lower.

This suggests that there were buyers interested in buying

near the high, but they were met with an equal number of
sellers, which caused the market to move lower.

When the COT is near or at the bottom of a bar that closed

on its lows, it is typically a sign that the market is going
lower as there were active sellers to move prices lower.
In general, when the COT is in the middle of a bar, it is
considered market neutral.

If it appears at the top of a bar and the bar closed lower, it

is considered bearish, as a lot of trading activity occurred
at the high but the market could not trade higher.
If the COT appears at the bottom of the bar and the bar
closed higher, it is generally considered bullish, as all the
selling pressure was met with buyers.
There are many different combinations of COT locations
and each one can give a different sign of market sentiment.

116
In the example we see the market is not showing any clear
trend or direction.
It goes up a few points then comes down a few points.
The Commitment of Traders (COT) are mostly appearing in
the middle of the bars.
However, at point 1, there is a sudden appearance of large
new passive buyers that put in bids at the 1.06720, which
were sell off, but the market could not go lower and
actually closed higher with a few buying imbalances near
the high of the bar.

The COT is near the bottom of the bar, yet the bar closed
higher, which is an indication that the market is likely to
move higher, which it does.

The COT itself is not an indicator, but it can be used to

confirm a move.
When uncertain about the direction of the market, the
COT location in a bar can be useful for identifying potential
direction. If the market is in a range-bound state, the COT
can be used to look for signs of the direction or potential
direction of the market.

Note: “ COT (Commitment of Traders) reports provide

information on the size and direction of positions held by
different groups of traders, including commercial traders,
non-commercial traders and swap dealers in futures
markets. This information can help traders to identify
market sentiment and potential market trends. The COT
reports are released by the CFTC (Commodity Futures
Trading Commission) on a weekly basis and are based on
the previous Tuesday's open interest positions.

117
Institutional whale orders explained.

Institutional whale orders refer to large trades placed by

institutional investors, such as hedge funds, mutual funds,
and pension funds.
These large trades, also known as "block trades," can have
a significant impact on the market due to the size of the
orders.

Institutional investors have access to a wide range of tools

and resources that allow them to conduct extensive
research and analysis before placing a trade.

This allows them to identify market trends and

opportunities that may not be visible to retail traders.
Additionally, institutional investors often have access to a
large amount of capital, which allows them to place large
trades without significantly impacting their overall
portfolio.

When institutional investors place large trades, it can

indicate a change in market sentiment or a shift in strategy.

For example, if a large institutional investor buys a

significant amount of a particular stock, it may signal that
the investor believes the stock is undervalued and has
potential for future growth.
On the other hand, if a large institutional investor sells a
significant amount of a stock, it may signal that the

118
investor believes the stock is overvalued and has reached
its peak.

It's important to note that institutional whale orders can

move the market significantly and retail traders should be
cautious when trying to trade on the same direction of
these large players.

It is also important to keep in mind that these large trades

can be done for a number of reasons and it is not always
clear what the underlying motive behind them is.

In conclusion, institutional whale orders refer to large

trades placed by institutional investors that can have a
significant impact on the market.

These trades can provide insight into market sentiment

and investor strategies, but it is important to be cautious
when trying to trade in the same direction as these large
players.

Now in this chapter I will give a few clear examples and

explanations of how exactly we can recognize these large
"whale orders" and know where they are.

We know that we can see and predict a lot with the

Orderflow tools.

For example with the Footprint we can see the large

Market orders at the tops or the bottoms.

Unfortunately we do not see the limit orders that are used

by the large whales.
But how can we see it then?

119
We can often find that in the DOM or we see a very high
volume in the delta.
Which can also tell us that there are large whales present.

120
In the previous image we see a candlestick chart with a
Supply zone drawn in it.
But that is also all we see because of course we cannot
look into the candles to see what exactly is happening
there. In the next image I include the Footprint chart.
And then you can see what I mean.

121
Do you see the high numbers that formed the Supply zone?
I think we can assume a Whale Zone here.

This area is interesting for a possible trade if price returns

here.

So: Zone is created with a 0x15 0x6 and 2 times a 0x2

Large orders are hidden here. And then I'll tell you that on
oil these aren't even very big numbers.

Then we see that the price comes back here with even
higher numbers 0x32 and the 0x19 which are already quite
high and can therefore mean a nice sell entry.

After all, we want to sail with the big whales.

But what else do we see?

Also take a good look at delta.
Do you see the volume getting a hell of a lot higher as
price gets to that area?
That is also a good sign that the whales have their orders
there.
Normally I will also take a look at the DOM, but
unfortunately this is not on the picture.
But what you see very often is that high limit orders are
waiting around that zone.
(often) it doesn't always have to be that way, but please
pay attention to that!

Sometimes there may be a piece above a large limit order

where price will go first. Or a large buy limit order a bit
below the zone, which eventually pushes the price back up
there. So always keep an eye on that.

122
123
124
The outcome

Okay on the previous pages we see the following whale

order.
As we can see, the price is even higher here especially
when we look into the candle.

Many of you probably wouldn't even have taken the trade

if we were just going by the technicals.
I mean it doesn't look its best does it?

125
But if we look further into the footprint chart, we see very
nice high imbalances (The Whale Order).
Like the 0x8 and the 0x25 which form the Supply zone and
then price comes back with a 0x30 and a 0x12. And oh yes,
don't forget that beautiful red delta.

126
In the example before we see the Crude oil chart with a
Demand zone drawn on it.
We see a clear and large legout and it just looks like a very
good Demand level don't you think?

But unfortunately we can't see anything in the candle now

and we look kind of blind.

127
Yes and price just breaks through.
Okay yes that can happen I mean we win but also lose
sometimes.
But should we also have taken this loss if we had used the
order flow tools?
Let's take a closer look at this.

128
Well I think by now you can make a story with what you've
already learned in this book and the videos. So here comes
the big question: Could you have avoided this loss?

The answer is of course YES!

And I think most probably saw this already, but let me
explain again why this wasn't and hasn't been a nice BUY.
First we see that Demand zone has been created very
nicely with very nice and high numbers on the footprint
and a clear green delta on the Demand level which are all
signs that price is going up.
Then we will of course wait for price to return to the
Demand for a nice Buy entry.

But the moment price returns to the Demand level, we see

very clearly that the Delta remains very negative, let's say
fire red!
That is of course not a good sign.
Then price crashes through the Demand.
Which is not necessarily a bad thing, but also does not
leave high imbalances at the bottom.
These are actually all signs not to take the trade!

With this one we may also see it a bit technical that it is

not a very nice buy entry, but it now also shows very well
what you can see with the Orderflow tools and not with
the candlestick charts!

I just want to say with the order flow tools you are always
a few steps ahead of the rest!

129
Well the last one then.
Where is the Whale Order located?

130
131
Well I think you know where the whale order was?
And all signs were correct in this example to be able to
take a nice trade.
Now this is what we call an Iron Demand zone. The
footprint was right there with the delta.
The only thing we couldn't see in this example was the
DOM.
But I think this one would have looked perfect too!

Summery:

Whale orders in trading refer to large buy or sell orders

placed in the financial markets by individuals or entities
with significant financial resources, such as hedge funds,
pension funds, or wealthy individuals.
These large orders can significantly affect market prices
and liquidity, and are often watched closely by traders and
investors. Whales are considered to have a large impact
on the market, as they can move prices and cause sudden
spikes or drops in demand for a particular asset.
However, the motivations and strategies behind whale
orders can vary, and may not always be predictable.

What have we learned in this chapter?

We know how to recognize and review Whale orders often

with the OrderFlow tools.
We know when we have a good trade or when it is better
to let trade pass us by.
We know what an Iron zone is and how to find/recognize it.
(described in previous threads).
In short, we know what we have to do to be able to sail
with the Whale Orders.

132
Market profile and POC.

In this chapter we will talk about the Market Profile and

the POC.
Most of you who may have known me for some time
already know that I use these tools a lot in my trading.
And I mainly use it to validate my Supply and Demand
levels, but also to determine any SL or TP levels.

I'll start by explaining what the market profile and the POC
are exactly so that you know how to use it and what it is
exactly.

Volume Profile is an advanced charting study that displays

trading activity over a specified time period at specified
price levels. The study (accounting for user defined
parameters such as number of rows and time period) plots
a histogram on the chart meant to reveal dominant and/or
significant price levels based on volume. Essentially,
Volume Profile takes the total volume traded at a specific
price level during the specified time period and divides the
total volume into either buy volume or sell volume and
then makes that information easily visible to the trader.

 POC
POC Point Of Control.
It refers to the area in the chart with the most traded
volume activity. This is by far the most relevant area you
want to monitor as it can help to define the placement of
your stops or the areas in the chart where you might find

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entry levels. The highest concentrated area of volume for
a particular period of time we will call it POC.
 High Volume Nodes (HVN)
Sub-sequences in the chart with high volume activity.
While not as powerful nor symbolic as the PoC, the HVN is
also a powerful area as it also represents increased trading
activity.
 Value Area (VA)
The range of price levels in which a specified percentage of
all volume was traded.

High Volume Nodes (HVN) are peaks in volume at or

around a price level.
HVN can be seen as an indicator of a period of
consolidation.

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Usually there is a great deal of activity on both the buy and
sell side and the market stays at that price level for a great
deal of time compared to other levels in the profile. This
can imply a “fair value area” for the asset. When price
approaches a previous HVN (or fair value area) a sustained
period of sideways movement is expected. The market is
less likely immediately break through that price.

Low Volume Nodes (LVN) are the opposite.

They are drops in volume at or around a price level.
Low Volume Nodes are usually a result of a breakout rally
or a breakdown.
During a rally or a breakdown, there will typically be an
initial burst of volume and then a significant drop off.
The drop off can imply an “unfair value area” for the asset.
When price approaches a previous LVN (or unfair value
area), the market is much more likely to rally through or
bounce off of that price level.
Because it is seen as an unfair value area, the market will
not spend as much time there compared to some other
levels in the profile.

So now we know Market profile is a method of showing

market activity and how it develops over time.
Let me also be clear right away and tell you that the
Market profile is not a trading method, but definitely only
a tool.

We cannot blindly use this tool in our trading, but see it as

a roadmap.
Think of it as a tool that can show you exactly where you
are in the market.

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Here we see the Market profile on ATAS.

And above we see an example of the Market profile with

cluster delta on MT4.
I will now use 2 examples, but both come down to the
same thing and both do the same, so it does not matter at
all which software you use.

Okay then I'm going to explain to you how I use the

market profile myself.

136
I mainly use the market profile to see if they match my
Supply and Demand zones because I know if they match
together my Supply and Demand zones are much stronger
and price will respect them much faster.
Just look at the example above on the mt4 chart. There we
see the perfect example of the Market Profile that
matches the Supply zones. So here we see Iron zones
again!

But of course this is not the only way I use the Market
profile. You can often also very well determine your Take
Profit or your Stop Lose with the Market profile. For
example, by always placing your SL above or below the
Market Profile or by taking your Take profit around the
Market profile.

In the image you can see an example of a Buy trade that I

had taken.

137
But when the price arrived at the POC the red lines in the
Market Profile I decided to take my profits and I'll show
you why in the next image.

Study the image very carefully and you will probably see
why I decided to take my profits here.

Just when price arrived at the POC level, we saw really

extremely high imbalances even the 0x838 what is
extremely high in the footprint, which again indicated to

138
me that I had to get out quickly and could probably take a
very nice Sell entry.
Do you see what I mean?

So this combination can also be real gold if you know how

to use it all together!

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140
Note: “ Market Profile is a technical analysis tool that
displays price and time information as a histogram
organized by price levels and time periods.
It provides an overview of market activity, including the
most traded price levels and the distribution of volume
throughout the day.
The Point of Control (POC) is a key concept in Market
Profile, representing the price level at which the most
trades have taken place in a given period.
The POC is considered a significant price level as it can
indicate potential Supply and Demand levels and market
sentiment.
Traders use POC as a reference point in their analysis,
making decisions on entries, exits, and risk management
strategies. Market Profile and POC are valuable tools for
traders to gain insights into market behavior and improve
their decision-making process.”

141
The DOM.
In this chapter, I'm going to explain a bit more about the
DOM and how we use it in trading.
As examples I will use the Smart DOM from the atas
platform.
Why is the DOM such an important tool? Well simply
because it shows the actions and intentions of the market
players.

Actions are the traded volume and intentions are limit

orders at each price level.
Limit orders provide the market liquidity.

We know that the sale only takes place when the Sell
market order meets the sell limit order.
And for the buy, of course, the exact opposite is true, so
the buy takes place when the buy market order meets the
sell limit order.

It is also often said that we can see more aggression in the

market orders and more impatient traders. You can of
course also explain that because the market orders are
immediately executed and you have to be much more
patient for a limit order.
But despite the aggression and pressure behind the
market order, they cannot compete with limit orders and
often cannot break the price levels where large numbers
of limit orders await.

That is precisely the reason to use the DOM in addition to

142
trading with the footprint, because we mainly see the
market orders in the footprint. But of course we want a
complete picture and must therefore also be able to view
the limit orders in order to be able to trade even more
accurately.

I will now show you an example of what the DOM looks

like exactly and what it all means.

Okay, I can imagine that you don't understand very much

about the image above. Therefore, I will now explain to
you what it all means.

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1. The price: You can see every price tick in the DOM.
That is why the daily range can look different for
everything and it will never be the same.

2. The volume.

3. Bid: These are limit buy orders. And the sell orders in
the market took over.

4. Orders: This column shows your limit orders. And if

there are also prices of your already opened orders, this
will have a dark color.

5. Queue: In this column you can see whether your order

will be executed and when this will happen.

6 & 7. Bid trades and Ask trades: Bid trades are market
sells and ask trades are markets buys.

8. Ask: These are limit sell orders. And the sell orders in
the market took over.

I hope it's a bit clearer to you now how to read the DOM a
bit.
Before I tell you how we can best read the DOM, I would
like to tell you why it is so important that we use the DOM
and what it can help and recognize us all with.

What can we better recognize with the use of the DOM?

1. Absorption.
2. Impulse.
3. Large orders.
I will explain this to you even better. Why this is so.

144
Absorbtion.
We have all experienced, I mean if you have been trading
order flow for some time and with the footprint that the
trade still kind of turns against you.
While everything is correct, your entire analysis is correct,
but you still hit your Stoploss.
I recognize it and I think several with me.
But the explanation here is very simple, we simply could
not see the limit orders that are waiting around those
price levels with the footprint alone.
Okay, so we can see with the DOM how market orders
cannot break the limit orders that are lined up at different
levels.
In this case we see the traded volume increase and the
volume of the limit orders decrease. (Unless it is an
iceberg order of course!) We also often see that the
market profile increases at such levels. We can also see
absorption in the charts, but this is often more difficult to
see and recognize, especially for novice traders.

For traders who do not yet know what iceberg orders are:
An iceberg is a hidden limit order that is placed in several
pieces and not in one go.
Often these orders are placed because they do not want
to scare them from placing 1 large order in the market at
once and instead place smaller orders in close succession.
We can therefore only see these iceberg orders in the
smart DOM.
You could also use certain indicators, but they often show
the iceberg orders after they have taken place.

145
Impulse.
Sharp focused movements can be seen very clearly in the
DOM. These traces are left behind when the price moves
very sharply in 1 direction. If the price moves up/down,
the traded volume will have gaps or empty cells and there
will be less filled cells.

Large Orders:
Large orders can be seen in the traded volume column.
We can see large orders much better in the smart tape,
which you can also find in the Atas charts.

In the image above you can see the arrows on the BID
trades and the ASK trades.

146
If you suddenly see a very high number on 1 of these sides,
let's say a 100, in this case it will mean that a very large
order is coming in here.
This is of course different with everything you trade and I
will certainly advise you to compare this for yourself with
each instrument to see what really high numbers are.

There are many ways you can use the DOM in your trading.
There are even traders who swear by the DOM and only
take their trades from there. And don't even look at the
"technicals" anymore.

Before I go into exactly how I use the DOM and what I look
for in my trading, it's good to understand that limit orders
come and go. If you pay attention and put it aside for a
while, you can see that sometimes very large limit orders
are placed at a certain level, but a little later you see those
large limit orders disappear and then reappear at another
level.
So with this in mind you can use the DOM very well for
extra confimation.

How i use the smart DOM.

For the example here I use the smart DOM I have the DOM
in my chart so that it can be seen quickly and clearly for
me.
As you already know, I start my morning by drawing out
my Supply and Demand zones and I will mark all high
imbalances at the tops and bottoms.

147
148
Here we see 2 examples of the 6B chart (GBP). First we see
the candlestick chart where we see the dom on the right.
We see a high imbalance on the left, which could form a
nice trade if price comes back there with another high
imbalance.

149
Below I have the same chart on the 1m on the footprint
where we can see the nice high imbalance.
So suppose that price now returns to that Supply level
with a very nice high imbalance.
Then that could be a very nice sell trade.
Often this also plays out very nicely.
But without the DOM we can also go very wrong.
Because then we are purely based on the market orders.
So what should you look for when price comes back with a
high imbalance? What we have to pay attention to are the
limit orders at that moment in that level! Especially since
the limit orders are usually many times larger than the
market orders. And in the end often also be able to knock
out the market orders.

150
I've made another example above of the 6E Chart de Euro
on the 15m time frame.
Here we see that the price has made very nice and high
imbalances.
For example, we see the 0x26 and the 0x17 at the top of
the peaks.
And also right there are many limit orders waiting at the
moment.
Of course we know that these also change over time, but
suppose that price would now return to the Supply zone
with these many limit orders and, for example, a high
Imbalance in the tops, this could mean a very nice Sell
posistion.

151
So just a short summary: When price returns to a fresh
Supply level with nice imbalances on the left side and price
prints another nice imbalance there or perhaps an
extreme imbalance, this could be a nice sell entry.
But... we also have to look at the DOM, are there many
limit orders waiting for that level?
Or are they above this level? This also gives us additional
clarity on where the price could ultimately move with a
high probability.

Okay, a little later we see that the price comes back in this
Supply zone.
We could now look at a nice sell entry?
But is this already the right time?
What do you think?

152
Yes, I hope this was already in your expectation?
Price breaks hard through the Supply!
And how could we have already carefully anticipated this
or perhaps better said that we should not have done
anything here yet?
Let's first take a look at the footprint. Were there high or
extreme imbalances visible? Oh no?
And did we perhaps see a lot of limit orders on the DOM?
No neither!

We also see a little later that many limit orders are waiting
higher, which can also be an indication that price will
break through the Supply and will certainly move towards
the Limit orders.

I personally think this is a very nice and clear tool to use

with order flow trading.
Also do i think that without the DOM a less clear view of
the market you have because who would not want to see
the Limit orders.

153
Note: “ The DOM (Depth of Market) is a trading tool that
displays the number of buy and sell orders waiting to be
executed at different price levels for a specific financial
instrument. It provides a real-time snapshot of market
liquidity and helps traders to understand the supply and
demand dynamics of a market. The DOM can be used to
assess market sentiment, determine the best prices to
execute trades and make informed decisions on entries,
exits and risk management strategies. In electronic trading,
the DOM updates in real-time, allowing traders to react
quickly to changes in market conditions. It is a valuable
tool for both day traders and position traders as it provides
a clear picture of market activity and helps to identify
potential trading opportunities.”

154
Iceberg Orders.

Traders often use a technique called iceberg ordering to

conceal their true intentions in the market.
An iceberg order is a large order that is divided into
smaller parts, so that only a portion of the order is visible
at a time.

For example, a trader may want to buy 500 lots of corn,

but will enter an order for only 50 lots at a time, with the
rest of the order being revealed gradually as the initial 50
lots are filled.
This allows traders to avoid moving the market with their
large orders.
Iceberg orders are commonly used in nearly all markets
these days, even thinly traded ones.

However, it can be difficult to spot them as they don't

have a special designation in the ticker.
They are most obvious when watching the bid/ask and
buying the offer, but every time you buy the offer it
refreshes the quantity and doesn't break through the level.

Institutional traders often use icebergs on orders that are

over 50 lots as it is a normal practice to iceberg orders that
they need to get done immediately. However, the
significance of iceberg orders can vary greatly and can be
irrelevant in some cases and significant in others.
It is important to take them in the context of the market.
Icebergs can be used to hold up or hold down a market,
usually at long term macro levels or psychological levels.

155
In these cases, the volume keeps refreshing when it trades
a certain quantity, and when these icebergs are taken out,
the market can move quickly in that direction.

However, a single iceberg order will not stop a trend, as

aggressive participants will tend to come in and take out
levels.

So in conclusion, finding iceberg orders can be difficult and

may not add much value in making a trading decision.
The traded volume from iceberg orders will show up in the
order flow chart, and it is understandable that institutional
traders want to conceal their true intentions in the market,
but it is not always easy to spot them.

Example: A large institutional trader, like a hedge fund,

wants to buy 200,000 shares of a stock (Company 1) but
the average daily trading volume of the stock is only

156
35,000 shares.
A single order of 200,000 shares would attract attention
and potentially drive up the price due to other traders
front-running or sellers asking for a higher price.
To avoid this, the hedge fund uses an iceberg order.
This order breaks the 200,000 shares into smaller
increments of 5,000 shares, allowing the hedge fund to
buy the stock discreetly over a period of time and at or
near its desired price of $35 a share.

Note: “Iceberg orders are a way for large traders to hide

the volume of their trades and avoid affecting the market
price. By dividing a big trade into smaller pieces, the
traders can execute their desired quantity of buys or sells
without attracting attention and causing a sudden
increase or decrease in demand, which can impact the
stock price.
This way, they aim to achieve their desired price and avoid
paying more or receiving less than they intended.
Iceberg orders help institutional traders keep their
intentions hidden from other market participants and
execute their trades more discreetly.”

157
Story of indices.
As you all know i am a big fan of trading indices besides FX
and Gold.

Indices are a big part of my succes.

The price ranges are great and move perfectly during the
New York session yes my focus for indices is mainly on the
New York session.

Why because the big 30 (US30) Dow Jones NAS100 the

100 largest American companies and us500 the 500 largest
giants consider themselves active on it.

The history of indices in trading can be traced back to the

late 1800s, when Charles Dow and Edward Jones created
the Dow Jones Industrial Average (DJIA) in 1896.
The DJIA was the first stock market index and it tracked
the performance of 12 industrial stocks.
Over the next few decades, other indices were created to
track the performance of different markets and sectors.
For example, in 1923, Standard & Poor's (S&P) created the
S&P 90, which tracked the performance of 90 stocks.
In 1957, the S&P 500 was created, which tracked the
performance of 500 stocks and is still widely used today as
a benchmark for the overall performance of the US stock
market.
In the 1970s, index funds and exchange-traded funds (ETFs)
were created, which allowed investors to gain exposure to
a particular index and track its performance.

158
This made it easier for investors to invest in a particular
market or sector and reduced the need for them to select
individual stocks.

As technology advanced, so did the way indices were

constructed and calculated.
Nowadays, most indices are calculated using market
capitalization, which takes into account the total value of a
company's outstanding shares.
This means that companies with a higher market
capitalization have a greater weight in the index.
Indices have also expanded to cover various sectors and
regions, providing a benchmark for performance of
markets and sectors worldwide.

Nowadays, there are indices that track the performance of

different sectors, such as the S&P 500 Information
Technology index or the MSCI Emerging Markets index,
that provide a benchmark of the performance of a
particular sector or region.

In conclusion, Indices have been a fundamental tool in

trading since the late 1800s, they have evolved to become
more sophisticated, providing a benchmark for the
performance of a wide range of markets and sectors
worldwide.
The creation of index funds and ETFs have made it easier
for investors to gain exposure to a particular index and
track its performance.
Indices have become a fundamental tool for traders and
investors to gain a better understanding of the overall
performance of a market or sector and make informed
investment decisions.

159
It's important to note that indices are not perfect
indicators of market performance, as they only track a
specific group of stocks and may not accurately represent
the overall performance of a market or sector.

Traders should also consider other factors such as

economic indicators and company-specific information
before making investment decisions.
In conclusion, Indices are a useful tool for traders and
investors to measure the performance of a group of stocks
and make informed investment decisions. While they
provide a good benchmark for market performance,
traders should also consider other factors when making
investment decisions.

So now that you understand what indices mean and why

do you now also understand that these companies and
these big players who trade money here and then with the
core focus on wall street and other big investors make a
lot of money with this and that a huge amount is traded
every day.
Companies such as apple Mac Donalds, Coca Cola Walt
Disney etc convert billions every day.
And we see this trade happening before our very eyes.

I think we can say that this is the reason why an example

like the US30 or the nas100 have so many and such large
price ranges.

During the New York open as explained in the videos we

sometimes see 500 to 1000 point ranges being filled in a
session a powerful move sometimes.
It fills candles from the opening in just 3 hours.

160
You understand the reason for this now that there are
gigantic whales behind that have to fulfill these orders in
these price ranges mostly in and from value area lows and
highs to the absolute edges.

Within these price ranges we find the iron zones

something we have discussed earlier in the chapters on
US30 I find these zones mainly around the m5 m10 and
m15 and often also on the m30 of course.

Are the criteria that match a zone on multiple timeframes

make them stronger.

161
Keep in mind the value area lows and highs equal lows and
highs especially indices tend to react very hard and
aggressively to this.
Think of the weekly lows and highs this is where the
volume hits the market and where the big whales usually
bring in new volume we also see the bigger reversals
starting here for the on to next week or weeks.

Between these levels we find our iron zones and during

the opening we really see that the liquidity is brought in
here with a path of persecution I am of course referring to
the indices videos, the beautiful pullbacks around the
opening and the absoluty newyork dumps.

Below is a short example of such an opening plus dump

with a huge price range that is filled.

162
This is what i mean by the New York open dump if you get
4/5 sessions back from say Tuesday to Friday you will see
the pattern in this how this happens over and over again
with the same pattern.

So if you are an indices trader, this is where you want to

be because this is where the big money is moved and the
whale orders flow in here.

It is important to understand where and how this money is

moved the liquidity pushes are key here the deep spikes
against fresh iron zones because these iron zones are
often filled with fresh new orders and limit orders all
around on the in Depth Of Market (DOM)

We often see these iron zones being created a session

before if your focus is on the New York opening it is best
to look for these levels around this opening that means
Asia and or London, these are the most recent and fresh
zones.

The London session is usually a small correction in price

and the New York session the dump so the real move.

163
Apply in real markets.

We have already discussed a lot of topics about the order

flow tools.
But how do you put all this together with taking a final
trade?
Of course you will find a lot in all the videos that I have
recorded for you next to this book.
But of course I also want to explain a number of trades to
you step by step in this book.

164
165
166
In the previous images you can see a nice trade on crude
oil.
Why is this a good trade?

It was a relatively late entry but too good to pass up.

On the footprint we see very nice and high imblances in
the Demand zone. A 21x0 an 18x0 and that in a Demand
zone where there are also very high imbalances on the left.

That gives a good indication for a buy entry.

If we then also look at the delta, we see that the delta

makes a switch from negative to positive, which also
shows us that this can be a good buy entry.

We no longer see high limit orders around it, which means

that we can take the trade.

And of course we see the outcome in the last image.

167
Here we see an example of the EURUSD the price shot up
so fast that I didn't have time for a good screenshot.

On the technicals we can see why I took this trade, but

what about the footprint charts?

168
Do you see all these high imbalances in the demand?
So that gave a very good indication for buys.
The delta is still quite negative, but it also changed as
the price went up.
And because of the high imbalances I decided to take
the trade.

Because also look at the volume.

We also do not see high limit orders around the
Demand here.

Which makes this a very nice trade for me.

Of course I can show many more examples, but I think

you understand the most important thing now and
understand that there are a few important rules when
applying the Orderflow tools.

Rules for a good Supply/Demand Zone

✓ First, look for a supply or demand zone with a nice

indecisive candle and a nice legout.

✓ See if this zone was formed by a higher imbalance on

the footprint chart.
And by that I mainly mean a 15x0 or preferably even
higher. The higher the better.

✓ And preferably the zone is also formed with a higher

volume.

169
Rules for taking an entry.

✓ The price must come back with 1 or higher

imbalances on the footprint on a Supply or Demand
level which is formed by a higher imbalance on the
footprint.

✓ Pay close attention to the delta.

We prefer to see a positive delta if we want to take
buys and a negative delta if we want to take sells.
But remember that there are situations where this can
be different.

✓ Pay attention to equal highs and lows, this can also

be a good indication of the trend switching.
And in combination with imbalnces on the footprint.

✓ Pay attention to the DOM and also pay close

attention to whether there are any high limit orders
around the level of your entry.

Rules for exiting a trade.

✓ Look for nice imbalance levels to take on TP.

✓ Also pay attention to any POC level or Value areas

for taking any TP.

170
✓ During your trade, also pay attention to whether
high imbalances appear on the footprint for a possible
earlier exit.

✓ And of course always pay attention to higher limit

orders that can just push the price in the other
direction.

171
Targets.

In this chapter we will talk about targets. Because how do

we determine a target and how do we know if we have to
exit a trade sooner?

I think everyone has experienced this you have opened a

good trade and price is moving towards your TP of let's say
20 PIPS.
You think that price can easily reach your TP, but just
before your TP at 17 Pips, the price reverses and then goes
up again.
After which you will eventually reach your TP after a long
time or in the worst case you will reach your Stoploss.
Then of course we would have wanted to get out of the
trade sooner, wouldn't we?

With the footprint charts we can often see this coming

because, for example, the candle shows a higher
imbalance on the candle at the bottom.
Which in turn can give us an indication that the price will
go up again.
I also often use the imbalances of the candle to determine
a nice TP.

Sometimes these imbalances are not there and I assume

POC levels or a High or a Low. Of course you also have to
take into account the time frame you are anticipating on, I
mean on a 5m chart your profit range is smaller than on an
h1 chart.

172
And where do we put our stop loss?
It is best to place a stop loss above or below a Supply or
Demand level.
Or above or below a possible POC level.
We also have to take into account a Stoploss with a High
or a Low.
I therefore think that your SL can always look different.

And will be tighter one time than the other time.

Sometimes you would also have to let go of a trade simply
because the SL would not be worth it.
Because we have to remain realistic and the SL has to
make sense, right?

Personally, I am therefore not a big fan of the fixed SL and

TP.
Because it will not always work out exactly that way and
we have to take into account to move with the big Whales
and honestly this can always be different.
Therefore, pay close attention to the footprint, delta and
DOM at all times.

And learn to track the Whales.

Never risk too much in relation to what you can earn.

If necessary, you let the trade go, something else will

probably come along.
Don't be tempted by the FOMO.

I will now give an example of a trade on crude oil. All

criteria are described, we just don't see the TP and SL in
this example, but the SL is about 10 pips above the Supply
zone and the TP was slightly below the LOWS. Why? I will
explain everything

173
Here is an example on a trade on Crude Oil.

Here we see the chart of oil.

We see a Supply zone with very high imbalances and I am
talking about really high imbalances on oil which also form
the Supply zone.
Namely the 0x48 and the 0x65.
My first thoughts, of course, was that I should wait for
price to come back into the Supply zone.

174
This Supply zone was also technically correct. (Iron zone)
Do you see what I mean?

Price came back in the Supply zone first time but without
leaving high imbalances you can see that in the next image.
So I decided to let the trade go for what it was.

Then the price returns to the Supply zone again.

Let's look at the next image what happened next!

175
So price returns to the Supply zone and again and I wait to
see if the price leaves a nice high imbalance.
And then I see that price is printing a high imbalance at
the top of the zone.
It went from a 0x36 to a 0x76 in 5 minutes and eventually
became a 0x375.

Which of course is an extremely high imbalance.

That can only cause the price to come down.
We also saw that the delta was especially positive when
price moved into the Supply in this case it meant that the
Buyers gave the final push into the zone.
And this slowly turned to delta negative.
Which meant a nice sell entry for me.

176
Oh yes, what is also important to say that the moment the
price printed the high imbalance at the top of the zone, it
also became a maximum level on the POC.

177
In this image we see the final outcome of the trade.
But where did I take my profits do you think? I took my
profit slightly past the Lows.
Usually with my TP I take into account imbalances at the
bottom or a possible Demand, but because it was not
there in this case I set my targets on the LOWS.

178
Note: ” In order flow trading, a target is a specific price
level at which a trader aims to exit a trade and take profits.
A target is set based on an analysis of market conditions,
technical indicators, and other relevant factors.
It is an important component of a trader's risk
management strategy as it provides a defined exit point
for a trade.

Traders use targets to maximize their profits and minimize

their risk.
By setting a target, traders can determine the potential
profit for a trade and allocate their capital accordingly.
Once the target is hit, the trader can close the trade and
realize the profits, regardless of any future market
movements.
There are several methods for setting targets in order flow
trading.
Some traders may also use a combination of methods to
determine their target.
In addition to setting a profit target, it is also important for
traders to set a stop loss, which is a predetermined price
level at which a trade will be closed to limit losses. The
combination of a profit target and stop loss forms the
basis of a trader's risk management strategy, helping to
ensure that they remain disciplined and avoid emotional
decision-making.
In conclusion, targets play a crucial role in order flow
trading as they help traders to maximize profits and
minimize risk. By setting a target and using it as part of a
well-defined risk management strategy, traders can
increase their chances of success in the markets.”

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Summary Institutional Order Flow.

Order flow analysis is a straightforward and intuitive

method for reading charts and understanding market
behavior.
It is also known as supply and demand analysis, as it
focuses on identifying imbalances in order flow.

The core of order flow trading is identifying major price

movements and decisions in the market, which are easily
recognizable by large price swings on the charts.
The method involves looking at the history of charts to
understand the balance of buyers and sellers in the market.

1. Determine the correct zones with Orderflow tools.

Order Flow tools are essential for determining the correct

zones in the financial markets.
These tools analyze historical price data and market
behavior to identify areas of significant change and
decision-making in the market.
This information is used to create zones of supply and
demand, where prices are likely to change direction.
We can use order flow tools to identify key levels in the
market, such as previous highs and lows and significant
price movements.
Order flow tools also provide us with an in-depth
understanding of market behavior, allowing us to make
informed decisions about our trades.

180
So we learned how to draw the correct zones using the
Orderflow tools.
And we know what to look for in order to draw the best
zones.

2. Determine your entry with Orderflow tools.

Order flow trading allows you to gain a competitive

advantage in the financial markets by focusing on the flow
of orders and analyzing historical levels.
By knowing the levels you are targeting, you increase your
chances of buying low and selling high.
This approach also allows you to plan ahead, as you can
set orders in advance to be executed when the price
reaches your desired level, reducing the need for constant
monitoring and freeing up time for analysis and
preparation.
The result is a more relaxed and efficient trading process.

We have gone through how you can determine the best

entry and which criteria are important when opening a
trade.
You know how to use the footprint charts and how to look
at the delta when opening a possible trade. The more you
apply this, the more you will notice how "relaxed" trading
can actually be!

3. Determine your exit with Orderflow tools.

Order flow analysis is not only important for determining
entry points into a trade, but it also helps determine when
to exit.
By analyzing past market activity, we can identify
significant price levels where changes have occurred in the

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past, and use this information to plan our exit strategy.
By setting limit orders at these levels, we can exit ouir
positions when the price reaches the desired level,
ensuring a safe and profitable exit.
This method allows us to create a complete trade cycle
and execute our strategy with confidence, knowing they
are taking advantage of historical price patterns.

We talked about when it is best to take your Take profit

and what we should pay attention to if, for example, we
have to exit a trade early.
We know how to read this on the footprint charts and
what criteria to follow to be most successful with our
trade.

Order Flow trading provides us with a significant

advantage in the financial markets.
It is a simple and effective method that offers a high risk-
to-reward ratio and precise entry and exit signals.
Order flow analysis can be applied to a variety of assets
with high liquidity, such as Forex, stocks, commodities,
indices, and futures, and works well with any timeframe.

It is also a complementary technique that can be used

alongside other trading methods.
The order flow approach is particularly well suited for a
"set and forget" style of trading, where we can set limit
orders at predefined price levels.
This approach allows us to relax and focus on other tasks,
as the trade is executed automatically when the desired
price level is reached.

Different types of traders.

182
The futures market involves different types of traders with
varying motivations.
While the majority of traders participate in the market to
make a profit, there are also those who use futures as a
form of hedging.
This type of trading, known as hedging, involves taking a
futures position to offset the price risk of an underlying
commodity that they hold.

For example, farmers may sell futures contracts to protect

against potential price decreases of their crops.
Hedging traders are less concerned about the profit or loss
of their futures position as their main objective is to
reduce their overall risk exposure.
Understanding the different motivations and strategies of
various types of traders can help inform and enhance a
trader's approach to the market.

Trading in the futures market is not always driven by the

sole goal of making money.
Other motivations and strategies exist, such as statistical
arbitrage, where traders seek to profit from small price
discrepancies between different markets.
Additionally, traders may engage in spread trading, where
they take positions in correlated markets to take
advantage of price differences.
These and other motivations help to explain why markets
can have active trading on both buying and selling sides
without significant price changes.
Understanding these factors can provide a more nuanced
view of market dynamics and inform a trader's approach
to the market.

To put it differently, there are various categories of buyers

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and sellers in the market.
Being able to differentiate between them helps you grasp
the market's direction.
An aggressive buyer is someone who buys the offered
price, meaning they pay the market rate to enter or exit a
position.

An aggressive seller, on the other hand, is someone who

sells into the bidding price, meaning they sell at the
market rate to enter or exit a position.

Passive buyers, on the other hand, purchase at the bidding

price, meaning they were sold to by an aggressive seller.
And passive sellers, in turn, sell at the offered price,
meaning they were bought by an aggressive buyer.

Aggressive buyers and sellers are individuals who rapidly

enter the market, usually due to pressing circumstances.
This behavior can result in market imbalances and be an
indication of an impending price movement.

Meanwhile, passive buyers and sellers play a crucial role in

the market by providing stability through their support
and resistance.
These individuals tend to buy at low prices and sell at high
prices, and if the market is unable to surpass a large
number of passive buyers, it may signal a potential change
in direction.

184
Chapter 3
Trading psychology.

185
186
Mental state of mind.
It is not a rocket science that you have to be mentally
strong in order to trade successfully.
Successful trading is like running a successful business,
building a routine and continuing to work on it in order to
improve.

There are 3 important elements.

1. Be mentally strong.

2. Build a routine and stick to it.

3. Strong discipline and not letting anyone or anything

distract you.

If we go deeper into a strong mental aspect you must be

able to be emotionless in whatever you do.
So the output must be substantiated by a routine this
routine allows you to perform something daily.
But only once or twice a day and be successful in that.

It is well known that humans can successfully make one to

two mental emotional decisions per day.

And trading is definitely an emotional decision making and

therefore you need to be mentally strong.
And you have to realize that you are limited to a maximum
of up to 2 trades per day.

187
In fact you don't need more if you can substantiate this
routine in what you do and do the same kind of executing
daily or at least a few times a week or per month?

This of course depends entirely on your own plan of action.

Only realize yourself that after those two emotional

decisions whether it is a win or a loss a kind of eurofi
feeling arises because you have performed something.
You have won or lost it.
The losing aspects can give a kind of revenge feeling and
the winning feeling gives a kind of powerful feeling kind of
divine invincible feeling.
We have to counter this, by sticking to a maximum of 2
trades with one or two trading sessions you can
completely eliminate this mental aspect and you will
therefore not end up in that circle of doom.

Where emotions can take over you and you can therefore
work as a kind of robot machine.
Because you completely eliminate these eurofi feelings
yourself, you are the boss both mentally and
psychologically

When I write about the psychic feeling I have this

completely under my control I don't make more than 1 to
3 trading decisions per day usually it's really a maximum of
2 trades max and sometimes one in a session.

I understand when the whales are active and that's where

we want to be.
We discussed this earlier in the book we travel and flow
with the orders from A to B from Supply to Demand from
imbalance to imbalance.

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Everything out there is distraction forget this and realize
you need to keep your mind healthy.

It is you vs you every day.

I have been running a very large community for many
years.
But also with a group/a community can be very valuable to
many if you can interpret it the right way.
And use it purely as a source of knowledge instead of
blindly follow what everyone says.
There is a large piece of pyschology involved, because it is
about your decisions and not those of the trader across
the street.

Absorb knowledge and apply it in your own interpretation

your own plan your own session and asset where you feel
comfortable with.

For example when i trade a session it is either London or

New york because i travel a lot.
And travel through many continents and thus also trade
through different time zones.
Trading is a lifestyle it belongs to me it is my job i get
satisfaction from it.
It is just like a baker who bakes bread every day and a
fisherman who goes fishing it’s a passion.
That's how i trade the market and this is how I buy real
estate to rent it out and keep it in my portfolio for the
length and days.

To come back to the timezones if i am a europe it is useful

to focus from the London to the New York overlap, and if i

189
am in North America timezone i will probably miss the
London session.
And so i have to focus on a part of New York.
I will also have a focus on another asset, think of this for
the London session as a GBP pair such as the Pound
GBPUSD EURUSD the Euro is in it and the GBP.
For the New York session I have a choice of a wide scale
because then I can trade both markets.

I am telling you this piece because this is part of my

routine.
A session one to two assets and execute it with a high
dose of discipline.
Tip: Make sure you have these elements on point and it
provides a great deal of peace of mindand it makes you
eventually mentally strong.

I am a man of routine my day is often built up in routine it

gives me peace and i know exactly where i stand.

''The great routine''

I start my day at 7:00 in the morning.

Between 7 and half past 9 I do all my obligations regarding
the family youngest child to school etc.

Provided I have no appointments, of course related to the

real estate business, from 9:30 am I trade until 11:30 am
12 Europe timezone.

When this routine is completed I do a bit of gym strength

training and fitness mind soul and body control.

190
This is followed by a moment of rest nutrition etc
and then I continue the day with other activities, this is
often a routine of 5 to 6 days a week.
By means of this short example I know exactly where I
stand and I can basically make no mistakes trading wise.
The discipline level is again very high.

Furthermore i don't care what anyone else does or says i

see people and people's perspective more as a source of
knowledge that i apply in my daily life.
I have been able to gain a lot of knowledge about order
flow from two good friends of mine.
But see it as a source of knowledge and above all no
distractions.

I realized a long time ago that trading groups as said

should be a source of knowledge and not distractions.
If this is the case i strongly advise you to leave all the
groups you are in so start focusing on yourself.
I mean where do you want to be and what do you want to
achieve are questions you should ask yourself.

I am convinced that this book and these modules contain a

source of knowledge for you that will make you successfull.
Both as a trading person and as a human being, and if you
are already successful in any form then i hope this book
will help you grow to unprecedented heights.
And it has opened more growth in many doors because for
me it has done this.

Probably after reading these pages you also realize that

your pyschology is the most important thing to keep under
control.

191
A piece of risk management is also psychologically a large
part of the plan.
By keeping this on point you have the opportunity to keep
it up in the long run.
Whether you trade a large capital of 20 million or a capital
of 20,000.

Risk management in the base by keeping it on point you

will also last in the long run instead of 2 weeks.

Now you also understand the order flow aspects better

when how and where the price moves.
When it moves you also understand the logic after each
price movement.
The why and how is missing in many retail strategies it
remains a kind of guess game where you can certainly
make a profit and success but also in the long run?
The market moves on an algorithm, being able to interpret
it in the right way and making decisions and executing
them with logic is the most important thing there is as far
as I'm concerned.

Being able to actually explain the trade to yourself seeing

the order flow coming in being able to substantiate it to
yourself is the formula for success.

-In other words, act trade with surgical precision.

192
Routine and Clarity.

Routine and clarity are essential for successful trading.

A consistent routine can helps us to stay focused and
disciplined, while clarity in our trading plan and goals can
help us make more informed decisions.

Creating a consistent routine is important for us traders

because it allows us to establish a set of habits and rituals
that helps us stay focused and disciplined.
This could include things like setting aside a specific time
each day to review the markets and plan our trades, as
well as taking regular breaks to avoid burnout.

Having a clear trading plan and goals is also very important

for us traders.

A trading plan should include things like risk management

strategy, entry and exit criteria, and a plan for managing
our emotions.
Setting clear and realistic goals can help us stay motivated
and focused on our trading objectives.
Clarity in the trading plan also means being aware of the
market conditions and adapting the plan accordingly.

We as traders should have a clear understanding of our

risk tolerance, and how to manage our emotions during
the trading process.

193
In summary, creating a consistent routine and having a
clear trading plan and goals can help us stay focused,
disciplined, and make more informed decisions.

By having a clear understanding of the market conditions,

we can adapt our plan and make adjustments when
needed.

How to make a trading plan?

Writing a trading plan is an essential step for any trader

looking to achieve consistent success in the markets.
A trading plan acts as a roadmap for your trading activities,
helping you stay focused and disciplined, and making it
easier to make informed decisions.
Here are some key elements to include when writing a
trading plan:

1.Market analysis: Your trading plan should include a

comprehensive analysis of the markets you plan to trade.
This should include an overview of the current market
conditions, any trends or patterns you've identified, and
your overall market outlook.

2.Trading strategy: Your trading plan should include a

clear and concise description of your trading strategy.
This should include your entry and exit criteria, position
sizing, and risk management strategy.

3.Goals: Your trading plan should include specific,

measurable, and realistic goals.
These goals should be aligned with your overall trading
strategy and should be reviewed and updated regularly.

194
4.Risk management: Your trading plan should include a
detailed risk management strategy.
This should include things like stop-loss levels, profit
targets, and position sizing.
It's important to have a plan in place to manage your risk
and protect your capital.

5.Psychology: Traders should include a section on how to

handle emotions, and how to avoid common psychological
pitfalls.

6.Review and adjustment: A trading plan is a living

document, and it should be reviewed and adjusted as
necessary. You should constantly monitor it performance,
and make adjustments to your plan as needed.

In summary, a trading plan is an essential tool for any

trader looking to achieve consistent success in the markets.
It should include a comprehensive market analysis, a clear
and concise trading strategy, specific and realistic goals, a
detailed risk management strategy, and a section on how
to handle emotions.
A trading plan should be reviewed and adjusted as
necessary.

195
Trading Psyche.

Trading psyche refers to the mental and emotional state of

a trader when making trading decisions.
It encompasses a wide range of factors, including the
trader's emotions, beliefs, and attitudes, and can have a
significant impact on the success of their trading.

One of the most important aspects of trading psyche is the

ability to manage emotions.
Trading can be an emotional rollercoaster, and it is
essential for us traders to be able to stay calm and
composed in the face of market volatility and unexpected
events.

This requires a certain level of emotional intelligence and

self-awareness, as well as the ability to manage stress and
anxiety.

Another key aspect of trading psyche is the ability to

maintain a rational and objective mindset.

This is particularly important when it comes to decision

making, as we need to be able to evaluate different
scenarios and options in a logical and unbiased way.
This requires a level of detachment from the outcome of
the trade and the ability to think critically and analytically.

We also need to have a clear understanding of our own

beliefs and biases, as these can have a significant impact
on our trading.

196
I mean for example, if a trader has a strong belief that a
particular asset is going to rise, they may be more inclined
to hold on to the asset even when it starts to decline.

This can lead to emotional trading and can impede the

trader's ability to make objective decisions.
The trading psyche is a complex and multifaceted concept
that can be influenced by a wide range of factors,
including personal experiences, emotions, and beliefs.

It is essential forus to develop a strong trading psyche to

be able to manage the emotional and psychological
aspects of trading and make objective and profitable
decisions.

In conclusion, trading psyche refers to the mental and

emotional state of a trader when making trading decisions.
It encompasses a wide range of factors, including the
trader's emotions, beliefs, and attitudes, and can have a
significant impact on the success of their trading.

To develop a strong trading psyche, traders need to be

able to manage emotions, maintain a rational and
objective mindset, and have a clear understanding of their
own beliefs and biases.

197
The most common pitfalls and how can
you eliminate them?
Every day I speak to many traders and I also hear many
"problems" and what people have the most difficulty with.
Of course, we all know that a good strategy and good risk
management alone are not enough.
Because you also have to be able to stick to your own rules
and that is where things can go wrong for many.
Let's start with the first point which I hear very often.
That is because ′′ Revenge trading ′′.
You've probably had to deal with it yourself or are you still
struggling with this.

1. Revenge Trading.

Most and I dare to say all of us traders have experienced

this more than once.
You are in a good trade, everything is correct according to
your criteria, but the trade eventually turns against you
and you get SL.
At this point, your emotion takes over and the emotion
makes you prone to making stupid choices.
For example, because you want to recoup your loss, you
no longer fully adhere to your plan and more SL will follow.
In some cases this can be so bad that you can blow your
entire account through it.
This is of course just a small example, but there can be
several situations in which you could revenge trade.

198
I cannot tell you how you can completely prevent this, but
I can tell you how you can protect yourself from losing too
much money to revenge trading.
And you should include all of this in your trading plan.
So that you can save yourself from stupid mistakes.
For example, you could say after a losing trade the trading
day ends.
So that you can face another trading day with fresh
courage the next day.
And I especially recommend this to traders who have a lot
of trouble with Revenge trading and keep making the
same mistake over and over again.
Protect yourself against that and make a strict rule.
For some traders it can also sometimes help to, for
example, draw up a rule in the plan that no more than 3
trades are taken per day, for example.
This plan could also help with revenge trading.
And this way you can of course come up with even more
plans that can help you stop or limit the losses you can
make in revenge trading.
And especially print it out and hang it in front of you or
make sure it is always in your sight!

2. Greed.

Greed is also a common one.

Let me give you an example.
Of course, many traders have also experienced this and I
bet that many still struggle with it every day.
Okay let's say we see the perfect setup and we take the
trade we put our SL and of course our TP.
The trade is going well, but in the end we choose to
increase our TP slightly because "we think" yes indeed we
think we can really get more profit from the price.

199
We forget our entire trading plan for a moment and go
completely against it because we "think" that this is
correct.
Then price comes at the original Take Profit or perhaps at
the 20 pip target you set in your trading plan but you don't
take any profit there.
Then the price moves against you again and you then hit
your Stop Loss.
And all this because you suffered from your own greed.

I also often hear and see this from members who do this
because they have made a losing trade for this and want
to "make up" for this loss and preferably also want to get a
little profit from it.
Again, here again all emotions run away with you.

And this often results in an even greater loss than you

already had.
But how can you prevent this?
Well here too I can be short and clear about it put it in
your plan. And do you find it difficult to stick to your plan?
Print it out in large letters and make sure you can look at it
and always keep it in sight!

3. Overtrading.

Overtrading is a common problem among us traders, and

it refers to the act of placing too many trades in the
market.
It can be caused by a variety of factors, including
overconfidence, lack of patience, and the desire to make
quick profits.
Overtrading can lead to a number of problems for traders,

200
including:

Excessive losses: When we overtrade, we tend to make

more trades than we should, which increases the chances
of making losing trades.

Reduced profits: Overtrading can lead to missing out on

profitable trades because you are too focused on making
quick profits.

Burnout: Overtrading can lead to becoming mentally and

emotionally exhausted, which can negatively impact your
trading performance.

So to avoid overtrading, you should establish a clear

trading plan and stick to it. (See example in previous
chapter).
This includes setting clear and realistic goals, and having a
well-defined risk management strategy.
You should also be patient and avoid making impulsive
decisions.
Taking breaks when needed and having a healthy work-life
balance can also help prevent overtrading.

Another way to avoid overtrading is to set a maximum

number of trades per day or per week, and stick to it.
Also, it's important to take the time to analyze the markets,
and only trade when there is a high-probability setup.

201
4. FOMO (Fear Of Missing Out).

FOMO, or Fear of Missing Out, is a common psychological

phenomenon that can have a negative impact.
It refers to the feeling of anxiety or regret that one
experiences when you believe you are missing out on an
opportunity, such as a profitable trade.

FOMO can lead us to make impulsive and emotional

decisions, such as entering a trade without proper analysis
or overtrading in an attempt to make up for missed
opportunities.
This can lead to excessive losses and reduced profits.
To avoid FOMO, you (again) should have a well-defined
trading plan and stick to it.

This includes setting clear and realistic goals, and having a

well-defined risk management strategy.
You should also be patient and avoid making impulsive
decisions.
It's important to remember that not every trade is going to
be a winner, and it's better to wait for high-probability
setups.

Another way to avoid FOMO is to set a maximum number

of trades per day or per week, and stick to it.

Also, it's important to take the time to analyze the markets,

and only trade when there is a high-probability setup.

It's also important to remember that FOMO is a part of

human nature and it's something that every trader will
face at some point.

202
Developing a mindset that allows you to handle emotions,
and not letting them to cloud your judgement is key to
overcome FOMO.
In summary, FOMO, or Fear of Missing Out, is a common
psychological phenomenon that can lead traders to make
impulsive and emotional decisions and can negatively
impact their trading results. Having a well-defined trading
plan, being patient, and avoiding impulsive decisions can
help you avoid FOMO.
Setting a maximum number of trades and taking the time
to analyze the markets can also help prevent FOMO.

5. Overleveraged.

Overleveraging refers to using too much leverage in

trading.
We all know leverage is the use of borrowed money to
increase the potential return of an investment, but it also
increases the potential risk.
When traders use too much leverage, they are essentially
taking on more risk than they can handle.
Overleveraging can lead to a number of problems for
traders, including:

Excessive losses: When traders overleverage, they are at a

higher risk of losing their entire trading account, as a small
market move can wipe out all their capital.

Reduced profits: Overleveraging can lead to traders

missing out on profitable trades because they are too
focused on trying to make big returns with leverage.

203
Stress: Overleveraging can lead to traders becoming
mentally and emotionally stressed, which can negatively
impact their trading performance.

To avoid overleveraging, you should have a well-defined

risk management strategy that includes setting stop-loss
levels, and position sizing.
You should also be aware of the amount of leverage you
are using and avoid using too much.
It's also important to remember that leverage is a double-
edged sword, and it should be used cautiously.

Another way to avoid overleveraging is to only use

leverage when there is a high-probability setup, and to use
it in small amounts.

In summary, overleveraging is a common problem among

traders that can lead to excessive losses, reduced profits,
and stress.

Summary:

Trading psychology is an essential aspect of successful

trading.
It refers to the mental and emotional state of a trader and
how it can impact their decision making.
A trader’s psyche can be affected by various factors such
as fear, greed, and emotions.
Fear can cause traders to avoid taking risks, causing them
to miss out on potential profits.
Greed can lead to overtrading and impulsive decision
making.
Emotions such as anger and frustration can cloud
judgement and lead to poor decision making.

204
To overcome these negative emotions, we can use
techniques such as mindfulness, visualization, and
journaling.

Mindfulness helps us stay present in the moment and

avoid getting caught up in past or future thoughts.
Visualization allows traders to see themselves making
successful trades and can help build confidence.

Journaling can help traders reflect on their emotions and

identify patterns in their thinking.
In addition to these techniques, having a well-defined
trading plan, setting realistic goals, and risk management
are also important for maintaining a healthy trading
psyche.

Ultimately, a trader’s psyche is a constant work in progress

and requires ongoing attention.
By understanding and managing our emotions, we can
increase our chances of succes in the market.

Mindfulness and trading.

Mindfulness and trading can be a powerful combination.

Mindfulness, the practice of being present and fully
engaged in the current moment, can help you as a trader
make better decisions, reduce stress, and improve overall
well-being.
Trading can be a highly stressful and emotional activity,
and mindfulness can help us to stay focused and calm in
the face of market volatility and uncertainty.

By practicing mindfulness, you can develop a better

understanding of your emotions and reactions to market

205
events, allowing them to make more rational and
informed decisions.
Mindfulness can also help you to develop a better
understanding of the market and your own trading
strategies.
By being present and fully engaged in the current moment,
you can identify patterns and trends that may not be
apparent when they are focused on the past or the future.

There are several mindfulness exercises that you can

practice to improve your trading performance.

I will give a few examples of exercises you could use:

Mindful Breathing: Taking a few deep breaths and paying

attention to the sensation of the breath as it enters and
exits the body can help you to stay calm and focused in
high-stress situations.

Body scan: Body scan is a technique where you focus your

attention on different parts of your body, starting from the
top of your head and moving down to your toes.
This can help you to become more aware of any tension or
discomfort in your body and release it.

Mindful walking: Walking can also be a form of

mindfulness practice.
By paying attention to the sensation of the feet touching
the ground, the movement of the arms and the sensation
of the wind on the skin, you can stay grounded and
focused.

206
Mindful reading: Reading market analysis and news in a
mindful way can help you to understand the information
more deeply and make more informed decisions.

Self-reflection: You can use mindfulness to reflect on your

own performance, emotions, and reactions to market
events.
This can help you to identify patterns and improve your
trading strategies.

It's important to remember that mindfulness is a skill that

can be developed through regular practice. You should
always start small and gradually increase the time and
frequency of your practice.
It's also important to be patient with yourself and not to
get discouraged if you find your mind wandering.
With regular practice, mindfulness can help you to
improve your performance and overall well-being.

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The checklist / trading pyschology

A good clear checklist that measures your criteria is key in

my view a perfect trade does not exist in my opinion.

There is the possibility to greatly increase your chances of

winning, especially with the order flow tools.

That's why I advise everyone to keep a journal with a

checklist attached, basically something you will find in all
my videos in the online modules, it's a checklist that I go
through time and time again video after video.

You can imagine that this helps me a lot within my trading

pyschology it helps me to stick to a strict set of rules and
to follow them, we can operate flawlessly whether it is a
win or a loss.

Compare it to a surgeon who does a brain operation

several times a week, each operation remains unique but
he follows his plan to perform it as successfully as possible.

It is of course an ultimate comparison but if you take

trading as seriously as a surgeon you can perform under
high pressure and you are able to make good and correct
emotional decisions, again this is crucial to have a healthy
and clear trading pyschology and keep it on point.

And set of rules from my checklist can be found next.

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My order flow checklist.

✓Are we at an equal high or low?

✓Is there a clear Supply or Demand that we can identify

horizontally on the footprint with an imbalance in it?

✓Can we also see vertical order flow entering this zone in

terms of high numbers on the bid or ask?

✓What does the COT tell me Commitments Of Traders?

✓Has a level been tested on a lower timeframe m1 m5

and do we see buyers or sellers coming in in multiple
clusters, so multiple sides ask on a Supply and multiple
sides bid on a Demand level?

✓Does the stops and the tp make sense to me? And can I
target it to a value area low or high?

✓Does it have enough volume does the delta also show

me enough negative or positive volume?

The 7 questions I always ask myself.

If these criteria meet, there is a trade.

Furthermore it is of course important to trade your asset

one or two assets is often enough to be able to trade
successfully, and to choose the right session where a set of
rules are required in your operation for about 2 to 3 hours
a day.

This way the base stays healthy and so does your

pyschology and mindset.

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You will have soaked up my routine from the videos how i
can explain each trade to myself.
If I can't do this it is not worth taking a trade for me we
traded not based on hope but based on rules logic and the
execution of this must be refined and clear to our selves.
I trade large sums of money in the market so i need this
logic.

Trading pyschology is, besides being able to explain the

trade to yourself, the most important thing, the logic gives
you the opportunity to build a correct routine and to
continue to follow this day in and day out and to perform
at a high level.

Trading wise there is a lot of emotion involved and also

through this routine and logic you are able to keep this
emotion under control.
People are often very emotional by nature and can only
make a few emotional decisions a day then we will come
back at the story routine and logic it has been scientifically
proven that we can not make more than 2 emotional
decisions a day, if we do this more than the chance of
success is less our brains are not made for this and so it
becomes more difficult.

By studying yourself you can find out what works for you i
have been studying myself for years i know to what extent.
I can perform and at what level have you studied yourself?
Possibly yes and do you know your positive and negative
sides many questions are best answered yourself.

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Trade and Money management.

What is also very important to be able to trade

successfully is trade and money management. And I think
even 1 of the most important aspects in trading.

Trade management is an essential but often overlooked

aspect of trading.

While it is important to manage financial risks by setting

limits on the amount of money to be invested in each
trade, it is also crucial to know when to enter and exit a
trade to maximize profits and minimize losses.

Professional traders understand that even with a sound

strategy and good market analysis, trades may not always
work out as planned.
They accept that market conditions are constantly
changing and that some trades will be successful while
others will not.
To increase the chances of success, traders should
establish a set of rules that give them an edge in the
market. These rules should be strictly followed, and if they
are not met, the trader should not enter the trade.
Bending the rules can lead to losses.
An effective trade management strategy involves carefully
selecting the right opportunities to enter and exit trades.
Ideally, traders should aim to enter trades at "sweet
spots" where the market is favorable and the potential for
profit is high.

This can help to reduce the impact of market movements

that may go against the trader's position.

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Proper trade management involves making informed
decisions about when to exit a trade, in order to minimize
losses and maximize profits.
This includes recognizing changes in market conditions or
trends, and taking a reasonable profit when necessary.
It also includes being aware of the actions of other traders
and identifying when the market is reaching a saturation
point.
Effective trade and money management is a key aspect of
successful trading, as it allows traders to stay disciplined
and adhere to their trading plan and exit strategy.

Additionally, it's important to keep in mind that there are

only five possible outcomes to any trade and by avoiding
repeated large losses a trader can increase their chances
of making a significant profit.

Managing trades effectively is essential to successful

trading.
This includes not only setting proper monetary risk per
trade, but also having the ability to adjust and exit trades
as needed.

One strategy for managing trades is to use stop-losses to

minimize losses, but also to consider scaling out of
positions in order to capture some profit instead of losing
it all.
It's also important to constantly monitor trades and be
aware of changes in market conditions, adjusting your
strategy as necessary.
In some cases, it may be wise to cut your losses and take
profits instead of holding out for the full potential gain.

Successful traders understand the importance of sound

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trade and money management in order to maximize wins
and minimize losses.

Managing losses is an important aspect of trading.

It is essential to keep losses small and manageable in order
to avoid being knocked out of the trading game.

Effective risk management is crucial for traders to make

money despite having more losing trades than winning
trades.

A good trader looks for quality trades and aims to make

money often and in substantial amounts.
It is not always necessary to aim for the big homerun trade,
but rather to spot quality trades and take them.

So i think the key to success in trading is consistency.

By maintaining a consistent approach, you can avoid losing
too much of your capital and be ready to capitalize on big
opportunities when they arise.

Instead of focusing on trying to predict large market

moves, it is more effective to look for low-risk, high-
probability trades that offer an edge.

The strategies outlined in this book may not always result

in very large profits, but they can help you earn good
profits or avoid losses.

Additionally, it is important to consider your own

emotional threshold for losses and how it may affect your
trading decisions.
Understanding your pain threshold and setting
appropriate stop loss levels can help you make more

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rational decisions and improve your overall success as a
trader.

It's important to not let your personal desires influence

your trading decisions.
The market operates independently and won't conform to
your wishes.
If you realize you're wrong, it's best to exit the trade.
Instead, determine a specific entry point and price, and
don't chase after missed trades as it can decrease
potential profits and the market may have already
changed.
Remember, there are always more opportunities to trade
in the future.

It's important to avoid getting caught in a trade that is not

performing as expected.
If the market does not react in the way that was
anticipated based on a certain set of criteria, it's a sign to
exit the trade or reduce the size of the position to
minimize risk.
Waiting for a breakout that is not happening is a common
mistake.
Instead, you should exit the trade and look for the next
opportunity rather than holding on to a trade that is not
showing any signs of improvement.

In trading, it's important to know when to cut your losses

and move on from a trade that isn't developing as planned.
Holding on to a trade that isn't showing signs of progress
can cause you to miss out on other potential trades that
may be setting up.

One way to avoid getting stuck in a stagnant trade is to

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use a time stop, which is a stop loss based on the amount
of time a trade has been open, rather than a specific price
point.

When a trade has been open for a prolonged period of

time without significant movement, it's likely that the
reasons for entering the trade in the first place have
changed and it's best to exit the position and reassess the
market.
Additionally, trading also involves some luck and
unexpected events can always occur.

It's important to keep in mind that trading is unpredictable,

and anything can happen on any given day.
There will be times when you make the right trade, but
the market doesn't move in your favor.

And there will be times when everything seems perfect,

but you still miss your target.
There's nothing you can do to control this.

Before entering a trade, it's crucial to consider the

potential risks involved.
Novice traders may believe that placing stop-loss orders
can effectively manage their risks, but in reality, the
market can move beyond these levels, resulting in an exit
at an undesirable price.
Therefore, utilizing stops alone does not constitute proper
risk management.
When it comes to setting stop loss points, one should
approach the task with a clear understanding that the best
stop loss point is the one that would indicate the trade
setup is no longer valid.

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It is important to have a stop loss point as part of a trading
plan and decided upon before entering a trade.

Additionally, you should be willing to exit a trade when the

reasons for entering the trade are no longer valid.
It is not always necessary to use a fixed stop loss point of
10 points on every trade, as the market conditions may
change and require a different approach.
The key is to choose a stop loss level that would indicate
that the original trade setup has become invalid.

When it comes to determining where to place your stop

loss, it's important to avoid setting them too close to your
entry point.

This increases the risk of getting stopped out too

frequently and can make you think you're being a cautious
trader, but in reality, you're increasing your chances of
losing money.
Instead, it's better to look for structural reasons to place
your stop, such as Supply or Demand levels. If you find
yourself constantly getting stopped out, it could be a sign
that you still have much to learn about trading.
It's important to make decisions and exit trades under
your own power, not just because you hit your stop loss.

When I first started trading, I used to think I had a sixth

sense for getting out of trades at the right time, but now I
use order flow footprint charts to determine better stop
loss locations.

It's important to remember that not every trade will be

successful.
While the chances are in favor of a successful outcome,

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there is still a small probability that the trade may not
work out.
This doesn't mean that the initial analysis was incorrect, it
could be due to a change in market sentiment since the
trade was established.

By using order flow analysis, traders can detect these

changes and exit the trade accordingly.

Think of it like a boxer - a boxer cannot win a fight unless

he can take hits and come back to fight.
Just because a boxer is getting punched, it doesn't mean
he will lose the fight.
It's his ability to absorb the hits and come back to punch
back at the right time that determines if he will win or lose.

It is not wise to always move your stop loss to break-even

as soon as a trade starts to move in your favor, as market
conditions can change.
It's important to give your trades a chance to reach your
targeted level, rather than prematurely closing them.
It's essential to have confidence in your trading method
and not leave potential profits on the table.

It's better to let your trades develop and reach their full
potential, rather than consistently taking small profits,
which can lead to ultimate losses.

When you have a better understanding of the direction

the market is moving in, or a more favorable entry point or
timing, you don't have to be as concerned about your
stops being triggered.
Instead of relying on traditional technical analysis, you
should focus on market structure.

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This will give you a better sense of when it's time to exit a
position.
Remember, the decision to exit a trade should be based
on the fact that market conditions have changed and the
original reason for entering the trade no longer applies.
If you continue to hold a position without a valid reason,
you're likely to lose money.

When making the decision to exit a trade, it's important to

not try and pick a specific price level to exit at.
Instead, it's best to simply exit the trade and then
reevaluate the market conditions.
Attempting to save a few extra ticks by trying to pick a
specific exit level can often backfire and result in a larger
loss. Exiting a trade is just as important as entering one, as
it determines the overall profitability of the trade.

Many traders tend to focus more on entering trades

rather than exiting them, but it's important to give equal
attention to both.

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My last words.

We have already arrived at the last part of the book.

Here are my last words to you.

When you trade, it's important to understand that there

are certain basic principles that will determine if you make
money or lose money.

Some people may promise you an easy way to be

successful in trading, but there is no magic formula.
The markets are always changing and it takes time,
patience, and practice to become a good trader.
To be successful, it's important to study the way orders
are moving in the market and look for patterns that repeat.
The overall trend of the market will be either up or down,
and it's best to go with the trend.
If the trend starts to change, it's important to get out of
the trade and prepare for the next one.
Trying to go against the trend is like trying to swim
upstream.

When you start to learn how to understand what the

market is telling you, you can start to see patterns.
But most of the time, the market doesn't have a clear
pattern.

Sometimes, the market is just working as it should.

But remember, nothing is certain when it comes to trading.
Different factors such as changes in the economy,
company performance, and even what people are saying,
can all affect the market.
By using order flow analysis, you can see what is

219
happening in real time and make decisions based on that
information.

Trading is not easy and there's no guaranteed way to

make money.
But, if you learn how to read what the market is doing, you
can make better decisions and make more profits.
It takes practice and time to get good at it.
Even though you might feel confident after reading a book
on trading, it's important to practice before putting real
money on the line.
The more you practice, the better you will become at
making quick decisions and understanding what the
market is doing in real time.

Entering a trade into a trading system may seem

unimportant, but it is easy to make a mistake by clicking
on the wrong price or quantity.
It's important to get practice entering orders yourself to
avoid mistakes that can cost you money.
The only way to develop intuition in trading is by
practicing and watching real-time charts.
This book will give you knowledge about order flow
trading and how i trade, but you need to gain experience
using that knowledge through actual trades.

In order to be a successful trader, you need to understand

the basics of the markets and how they work.

There's no easy way to make money by trading, but with

time, patience, and practice, you can become a profitable
trader. The key is to learn how to read the market and
look for patterns that can help you make better trades.

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It's important to remember that nothing is certain in
trading and that the market is constantly changing.
With order flow analysis, you can see what is happening in
real time and react to it.
The key is to practice, practice, practice.
Watch the charts and learn from them, but also make sure
to practice entering trades and not make mistakes.
Remember that in the market, when demand goes up,
prices go up and when supply goes up, prices go down.
Reading this book is just the beginning of your journey in
order flow trading.
You need to apply what you have learned and practice to
become a successful trader.
Everyone has their own unique way of trading and you
should find what works best for you.

Remember everyone has their own way of trading the

markets and that's what makes it interesting.
I would also like to thank you for all the trust and I wish
you all the best and success in your trading career!
And I'm sure The Whale Order will help you achieve great
success in the market!

I want to express my gratitude for the trust and support

you all have shown me.

Together, we can accomplish great things and make a

positive impact in the world.
I promise to always do my best and work tirelessly to
repay your trust.

Thank you again for all and for the trust you have placed in
me.

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My last tips for you:

Becoming a great trader requires dedication, patience, and

a strong understanding of the markets.
Here are some steps you can take to improve your trading
skills:

✓ Develop a solid trading plan - this should include your

strategy, risk management, and goals.

✓ Study the markets - stay informed on the latest

economic and geopolitical events that can affect the
markets.

✓ Practice with a demo account - this allows you to test

your strategies and get a feel for the markets without
risking real money.

✓ Manage your emotions - emotions such as fear and

greed can lead to poor decision making.
Stay calm and make rational decisions.

✓ Keep a trading journal - record your trades, what

worked and what didn’t, and use this information to
continually improve your trading.

✓Stay disciplined and stick to your trading plan. Don’t

deviate from your strategy in the face of losses or
temptations of quick gains.

✓Remain flexible and open to learning new things. The

markets are always changing, so it is important to stay
updated and adapt to new market conditions.

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By following these steps and continually striving for
improvement, you can become a great trader and achieve
all the success in the markets!

“Wishing you all the best on your endeavors.

May your hard work and determination lead to success,
and may happiness and prosperity follow you wherever
you go. Keep up the great work, and never stop striving
for your dreams."

Peace,

Kev.

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