Mike Valtos of www.orderflows.com has applied his 20 years of institutional futures trading and order flow analysis to a new set of indicators that make it possible for someone who has never used an order flow traded volume chart in their life to be able to start using order flow in their trading by removing the part of order flow analysis that stymies most new order flow traders – the order flow traded volume chart! This new set of indicators – the Valtos Indicator Suite – is now available for users of Sierra Chart and comprises:
- The Valtos U-Turn: designed for short term to swing traders and looks for potential reversal points in the market based on price action and order flow analysis. This indicator highlights the areas where there have been strong hidden support or resistance in the market that area impossible to see on a bar chart but can be seen on an order flow chart.
- The Valtos Transition: designed for short term traders and looks for shifts in supply and demand – the areas where the market changes from a demand-driven market to a supply-driven market or vice versa. When a market is putting in a bottom or a top it exhibits certain characteristics which can be seen in the order flow. When a bottom is being made the selling decreases and you see buying start to pick up and conversely when a high or swing high is being made you see buying decrease and selling start to pick up before the market falls over. Without looking at the order flow it will be very difficult to pick that up, in fact you would just be guessing.
- The Valtos Flip: designed for scalpers but also used by short term traders. This indicator looks for areas where there is a sudden shift in buying or selling activity. This is done by reading the order flow and what has been traded on the bid versus what was traded on the offer and highlights the spots where sellers have taken command of the market or buyers have taken control of the market. These are the spots where a big buyer or seller comes into the market and just dominates the trading. With a normal bar chart you would just see a normal up or down bar.