Our basis for measuring supply and demand in the market place is to see where the market participants themselves, are making buying and selling decisions at the intra day and swing trade levels.
Market participants cover the entire gamut of traders from retail to institutions.
It makes an awful lot of sense to me to buy when there are more buyers than sellers in the market place and sell when there are more sellers than buyers.
Accordingly the Orderflow turns red when we have more sellers in the market and blue when we have more buyers.At such points, a mental note of the levels at which the seller appears or the buyer is showing up, makes a lot of sense.
Here is the OrderFlow from today;
The most unique part of these charts is that it puts you on the right part as far as your bias is concerned.
A further confirmation is from our unique pivot point system which we call Prime levels.This is the Pivot point system, re-invented, where instead of the traditional use of price, we use a mixture of price + volume to get our levels right. These are represented on charts as PR3 to PS3 with day PP0 deciding the bias for the day.A market is strong above PP0 and weak below it.
Order flow always tells you the buying/ selling of the market.
Trade the Flow !