Transcription
Bookmap, TPO, VWOP. That's all you need. Orderflow does not have to be complicated. Let me show you an example.
Price pushes in this case into the plus two standard deviation on VWOP. That's our point of interest. Most traders simply try to guess here, but I wait. Let's switch over to Bookmap. As price approaches the level, we can see that stops are getting triggered on the stop volume profile. As soon as we hit our level, then we see aggressive sellers stepping in in the form of a large hidden iceberg order of 493 contracts. That's the confirmation move. Buyers are getting stopped out at the top and from there price rotates straight back down.
All right, so we got standard deviation on VWAP and order flow. Now, Trading View doesn't have order flow. It uses tick data. That doesn't mean we can't replicate an indicator similar to what he's got going on here using that tick and volume data. So what I'm going to do is go over to luxo.com/quant. We're going to build the indicator there.
Okay. So I was very descriptive on what I wanted. I said I want a VWAP with standard deviations of two. And I said I know Trading View doesn't have orderflow, but we want to use the tick and volume data to create something that may replicate or understand order flow. And then the biggest thing was marking out the very key highs and lows of a current session because that's where the majority of stops would probably sit. As you can see right now, we have a very cool volume profile and then very clearly marked pivotal highs and lows to help us determine where those stops might be.
So now I want to bring that code over to Trading View and look for some setups. I'm just going to go over to Trading View, Pine Editor, New Indicator, and then we're just going to paste this in and then add it to our chart. But if you look, we have our VWAP at our two plus deviations. We have our pivotal highs and lows. When a higher low is broken, you can see we get a dot that forms saying that was swept. We could indicate that might be a stop area. But what's very unique is the volume profile. You can see there's these golden bars in this volume profile. This says 1.8x 1.6. This is indicating higher than average volume at that particular level in the current session. So what we should look for based on his ideology is an extension to the standard deviation, a potential stop run, and then higher than average volume. As you can see right here, we pushed the bands down. We had a nice engulfing candle on the 5-minute with higher than average volume.
So, we're back on another day here. You can see we took out several lows. But, I think I want to add on the volume profile buyers versus sellers volume so we can understand when one is greater than the other. So, what I said is on the volume profile, I want to add buyer versus sellers volume and identify which one would be greater. So, you can see here we have a green B at these levels or a red S and that'll just tell us if it's greater on buyers or sellers. So, if you go back to today's extension when it took out the low of day, you can see we had a very strong B and five times 5x volume. So, it was a very good trigger for this to make a nice rally back to VWAP and higher.
Now, this indicator is not going to be as good as real order flow cuz Trading View doesn't offer order flow. But if you want the source code to this indicator completely free, just comment the word flow and I'll send you a link.