Order Flow

[LordJay]

When I am looking at the time and sales data and the market absorbs limit orders at a certain level it seems like when an influx of bids come in the market will move down and vice versa with the offers. Are these the sellers hitting into the bid? I used to think that was a buy signal but I have learned thats not the case.

 

[JJayFX]

When I am looking at the time and sales data and the market absorbs limit orders at a certain level it seems like when an influx of bids come in the market will move down and vice versa with the offers. Are these the sellers hitting into the bid? I used to think that was a buy signal but I have learned thats not the case.

Hey LordJay,

I've just signed up and i'll soon start a trading journal of some sort because I trade using orderflow. Just that I don't look at it from such a specific point of view.
Here's an example of how i view the landscape:

http://gyazo.com/e5861009ada3ebd0131ae2b298303f2b

Basically the reversal back below this week's highs (flip level) and the continued negative chatter from the RBA has shifted short term sentiment and forced out all the traders compounding from further down the ladder.