Hey Trader,
Finding Strength and Inspiration in Trading
I hope you're doing well. As we navigate the ups and downs of the trading world, it's important to find moments of inspiration and strength.
Today, I wanted to share a verse that has been particularly uplifting for me:
"Praise the Lord, my soul; all my inmost being, praise his holy name." - Psalm 103:1
In the fast-paced environment of trading, it’s easy to get caught up in the daily grind and the fluctuations of the market.
This verse reminds us to take a step back and appreciate the blessings we have, finding peace and strength in our faith.
Let this serve as a reminder to stay grounded and positive, no matter how the markets move.
By focusing on the bigger picture and maintaining a grateful heart, we can approach each trading day with renewed energy and confidence.
Wishing you a successful trading and peace in all you do!
Be Relentless In Pursuit Of The Will
Which God Has Set Upon Your Heart,
Anthony Speciale
By Request: What Does My OrderFlow Setup Entail . . .
Welcome, traders! I'm Anthony Speciale, here to delve into some of the essential order flow tools I utilize in my trading arsenal.
Today’s session is designed to give you an in-depth understanding of how professional-grade tools can elevate your trading strategy. Let’s get started!
The Naked Chart Approach
First off, let's talk about my trading philosophy.
I trade using what’s called a "naked chart," which essentially means the chart shows nothing but price and volume.
No traditional indicators clutter my view.
While I do maintain a reference screen for my clients that includes momentum indicators and potential trading areas, my primary trading is raw—focused on volume and price action - I strongly recommend a minimalistic trading chart for every trader.
Volume Profile and Delta
I integrate several key components:
Volume Profile: This shows the volume of trades at each price level.
Delta: Measures the difference between buying and selling pressure.
Cumulative Delta: Aggregates the Delta over a period, offering insights into market sentiment.
The Role of Order Flow Tools
This chart displays bid and ask fills at each price point, highlighting actual filled orders.
It’s crucial to understand the basics of price and volume BEFORE diving into order flow; otherwise, the complexity of order flow can be overwhelming and misleading.
Key Order Flow Components
Here’s a quick rundown of what’s displayed on my screen:
Footprint Chart: Shows bid and ask fills at each price point.
Time and Sales Tape: Indicates the speed and order size at various prices.
Volume Profile: Displays traded volume at each price point for the session.
Delta Volume Profile: Highlights buying and selling imbalances.
Bookmap: Visualizes resting passive orders and liquidity in the market.
Speed Gauges: Measure the rate of incoming orders.
Footprint Charts: The Heart of Order Flow Analysis
Footprint charts are instrumental in my analysis, but they must be used correctly.
You first need to identify key market levels where support or resistance is likely.
Simply relying on trapped buyers or sellers WILL lead to incorrect trading decisions.
Identifying Key Levels
Before looking at the order flow, I perform basic analysis to identify potential support and resistance areas.
For instance, I recently identified 81.73 as a key resistance level.
As the market approached this level, the footprint chart showed aggressive buying, but the price failed to break through, indicating a potential reversal.
Practical Application
Understanding order flow helps confirm your trading strategy.
For example, at 81.73, aggressive buyers were trapped, confirming my resistance level.
The market subsequently sold off, validating the analysis.
However, these insights are ONLY valuable if you can FIRST identify these KEY levels through TRADITIONAL technical analysis.
Integration and Patience
To effectively integrate order flow into your trading:
Develop a Solid Trade Plan: Ensure you can identify key levels of support and resistance.
Use Order Flow to Confirm Analysis: Look for clues in the order flow that support your trade plan.
Practice Patience: Order flow analysis requires time and dedication to master.
Order flow tools offer significant advantages, but only if you have a solid foundation in basic market analysis, understanding of volume and price action + a profitable trading edge.
Do NOT rush into using these advanced tools until you’ve proven yourself consistently profitable with much more simple trading methods FIRST.
Once ready, dedicate several months to integrating and understanding these tools within your existing strategy - prove them to be useful through journaling FIRST.
Remember, the goal is to enhance your trading edge, not to overcomplicate your approach.
Thank you for reading, and I look forward to seeing you in our next session!
God bless, and have a wonderful day!
If you have any questions or need further guidance, feel free to reach out. info@specialeanalysis.com May the markets be ever in your favor!
Happy Trading,
Speciale Analysis
About the Author:
Anthony Speciale is a seasoned market analyst with over 13 years of experience trading. Through his platform, Speciale Analysis, he offers in-depth market analysis, interpretation, and expectations designed to help all types of traders, at every skill levels reach their full potential.
Analysis, Interpretation & Expectations
Day, Swing & Position Trade Analysis
Daily LIVE Market & Orderflow Analysis
NOTE: Trading involves significant risk, and it's essential to approach it with a well-defined strategy and a disciplined mindset. This blog post is intended for educational purposes and should not be considered financial advice. Always conduct your own research and consult with a professional before making an financial decisions. For further risk related information, please refer to: www.specialeanalysis.com/disclaimer
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