The shorter term orderflow in the form of the green pink line works in all kinds of markets whether they are trending or range bound.
Generally speaking the idea would be to take a long when the Order Flow is green and short when it is pink.
The whole concept behind it is that the limit orders are passive and if they add up then the market can rise or fall and thus we take trades along side. The signals are modified with a Moving average to smooth-en them out and this puts a small lag in the signal. However even then if followed can produce good trades.
Here is a playback video of today’s BNF chart :
https://www.dropbox.com/s/leg2l6w8891emwk/BNF%20OrderFlow.MP4?dl=0
For the newcomers some feedback on how to use these signals. Some details are also available in the must read section here.
To add :
1) Start trading only with one side of the market- Stay with the pink if the market is below vwap or green if the market is above vwap. However if green starts below vwap and crosses vwap then enter the green trade above vwap.
2) Avoid a new signal if it is parallel to the Vwap line ( the market is flat and the signal can whipsaw) . The best signals are when the green pink starts curving up or down.
For more details including working – refer to the must tread section.