We would be introducing new Orderflow charts in the trading room tomorrow.
The basic structure for the OrderFlow remains the same.
1) Two OrderFlow set-ups for the longer time frame and the day time frame- the longer time frmae will be represented by blue-red and the smaller by green pink
2) The value areas will be represented as before by brown dotted lines and appear as VAH-POC-VAL on screen
3) The Initial balance or the first 60 minutes of trades will be represented by the darker gray region
4) The previous day’s highs and lows would be the same as before- green dotted lines
5) The VWAP continues to be the orange dotted line
Amongst the changes, we have made :
a) The Initial Balance range extension will now be represented by yellow lines on charts
b) The OrderFlow change of color will have signals indicating buy or sell and the actual price at which the signal occurred. A stop loss of 25 points needs to be maintained on an average for a new signal to work in your direction.
c) The developing point of control is represented by a thick bluish line in all charts
d) We have introduced “Power Levels” as booking/ initiation points for the signals generated by OrderFlow. The power Levels will be represented as PR3, PR2, PR1, PP0, PS1, PS2, PS3. These would work like Pivot points where PR3 is the highest resistance and PS3 the biggest support. The Only difference is that in calculating these levels, we have taken volumes at crucial points during the day and not just open, high, low, close. We believe that this will be a more accurate representation of buy/ sell activity of the markets.
I’ll elaborate on Power Levels in a separate post tomorrow.
