Video Transcript:
Order Flow can be very noisy if you look at every single trade in the market. So, in this video, I’ll show you how to filter out that noise and focus only on the big orders, the places where the big players are active. I’ll demonstrate it on my own Order Flow software, but you can apply the same idea on other platforms too. It may be called differently, and it may look different visually, but the logic is the same. After that, I’ll show you a simple setup for trading from those big orders. So, let’s get to it. What the trade filter does is it shows only the big orders, the big guys, the institutions. It filters out the noise of the market, filters out all those small numbers and all those small contracts jumping in. It shows only the big guys. Let me switch over to the chart and show you how you can set it up. So, this is the chart which I was showing you before, EUR/USD. We are on a five-minute time frame. I right-click the chart, go to Data Series, and in here, you adjust the minimal trade size. So, let me go, for example, to 10, which means that it will show only trades bigger than 10 lots. Right? As you can see, there are still a lot of those. So, you need to use a bigger filter. Let’s try 50. Every market is a bit different. So, you need to adjust this trade filter to the market which you are trading. All right. So, now, as you can see, it filtered out all the noise except for one huge order of 293 lots. So, this is definitely a big trading institution stepping in. By the way, you can change the look of this a little bit because this way, it looks a bit weird, at least to me. What I like to do is switch the mode to candle. Then it will look like this. All right. But when the market is not giving you enough signals, you want to lower the minimal trade size. All right? So, as you can see, we used 50 on EUR/USD, which is clearly too much. It filtered out too many trades. So, let’s set it to 30. Let’s take a look at the same period. Yeah, in this case, 30 looks ideal. Maybe you may want to go to 35 or 40 to filter out more trades. Yeah, that’s too much. That was too much. 35 it is. The good thing is that you do this only once with each market you want to trade, right? Each market is a bit different. Usually, there are different volumes traded in each market. So, that’s why you need to set this trade filter, or minimal trade size, however you want to call it, differently for each market. So, this is how I would set it for EUR/USD. But let’s get back to the presentation because I want to show you a setup which is based on those filtered trades. So, this is how the setup works. All right, you set the trade filter as I just showed you, and you look for those trades that are left in the market, the footprints of big institutions placing huge orders. So, for example, in here, it means one trade, one single trade, 31 contracts, 31 lots. All right. So, you want to see this, and any number will do, but you need to filter out the noise. So, you need to be pretty much certain that this is somebody big. All right. Then, you want to see the price move away from that place and make a pullback. Then, you trade from there. All right. If the price moved upwards from that level, then when the pullback occurs, you want to go long. But the price needs to move away from the big order. That’s important. And then, it needs to make the pullback. All right. Here are more examples of this. Right there, a big trade. The price moves downwards from it. So, you’re getting ready for a short. Boom. That’s the reaction. Another one was in here. So, you wait for a pullback. Boom. Short from there. Again, I’m using a 30-minute time frame for this. Right. This is my preferred time frame for this setup. Another example. There was a huge order traded in here. You wait for a pullback and go long from there. By the way, there was also one more in here, but the price turned one tick before the level. Tough luck. One thing which I haven’t mentioned yet is that it doesn’t really matter if the number occurs on the bid or on the ask. All right, it doesn’t matter. This number was on the bid, this one on the ask, but in this case, I don’t really care. Also, if you are trading Forex, then all those will show on the bid by default just because it’s Forex, but it doesn’t matter. So, don’t worry about it. All right, another example. A huge trade was traded in here. You wait for a pullback. You need at least two whole footprints formed below it, and then boom. That’s what you want to see, and that’s what you want to trade.
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