OrderFlow 10/05/2012

Following many requests to post the OrderFlow charts daily, I will start posting these everyday in this section. The Profile charts we would move to the main blog till we find a better way of doing this

 

I'll also try to share one important aspect of the charts everyday.

 

Nfof 3 Orderflow 10/05/2012

 

Bnof 1 Orderflow 10/05/2012

 

The Nifty chart of today again shows the importance of the VWAP/ DPOC which I stress every morning.

 

In the first hour one should try to see if the market is trying to stay above vwap/ dpoc or below.

 

This morning it was staying above, so an inference could be drawn that a failure to stay above it would call on more selling, which is precisely what happened.

 

Notice how sellers come in once vwap/ dpoc breaks.

 

Another important thing is that if you are trying to trade intraday one must remember that it is difficult to get all the trades right. You have to accept failure as part of the game as every set up will not give you a 100 % result all the time.

 

Vwap/ DPOC trades may not give you 10/10 trades all the time, but they are the first and most important things to look at once considering a trading decision for intra day.

 

Any question on today's trades, if you have traded can be =in this section below,.