Reading Order Flow & Studying Delta
I am no longer trading Forex in the spot FX market. I am now in the futures market and only trading the S&P E-mini (ES). I made the switch because the futures market is more transparent, it has a clearing house to transact all trades. Through having a centralized exchange and clearing benefits it can track and record volume especially tracking whether trades were executed on the Bid or Ask. The natural next level of my knowledge growth is to add order flow to my trading. Order flow needs both volume and Bid / Ask assignment of each trade. I am learning and studying volume, the relationship of trades through Bid / Ask and Delta.
My trading analysis is through a technical break down of price. From the charts, I begin with a very simple concept of drawing horizontal lines at both extreme and other obvious turning points. These levels can be called support and resistance zones. I call these lines structure level. If price is above, it serves as support. When price is below, it serves as resistance. ….
In addition to support and resistance levels, I draw Fibonacci retracement and expansion points then look for where the levels align with each other. For Fibonacci retracements, I mostly use .618 and .382 points. For Fibonacci expansion, I use the 1.414, 1.272 and 1.618 levels.
I further look for AB and CD moves. The AB=CD moves work well with identifying where the higher highs/higher lows, and lower lows/lower highs are.
Everything I learn and write here does not mean anything unless I practice it and do it live
I prefer to use price action to explain the results of economic data and market news instead of economic data and market news to explain price action.