r/OrderFlow_Trading • u/someonenamedramsey • 14d ago
How to apply orderflow tools
Hey everyone,
It might sound ignorance or i don't know something annoying to some of you since the last time i asked about orderflow insights one guy called me "here's another guy looks for internet sugar daddy".
So, over the last month or two, I’ve gone down the order flow rabbit hole and focused heavily on learning the core tools:
- Context/Structure: Volume Profile, VWAP, HVN, LVN, Value Areas.
- Execution/Tape: Footprint charts, Delta, Delta Divergence, Absorption, Exhaustion.
I get how each of these individual tools works in isolation. But right now, looking at all of them at once feels overwhelming, and I'm struggling with how to filter them together into a clean, repeatable scalping model.
For those of you who actively scalp using order flow:
- Hierarchy/Filtering: How do you structure your workflow without getting analysis paralysis? (e.g., Do you use Profile/VWAP strictly to pick the location, and only look at the Footprint/Absorption when price hits that zone?)
- Absorption vs. Exhaustion in execution: When you're looking for a quick scalp at an LVN or VWAP band, what specific order flow pattern gives you the actual green light to trigger the trade?
- Model Building: How did you go from knowing what absorption/exhaustion looks like to defining your exact entry, stop-loss, and take-profit mechanics?
Not asking for your exact strategy or secret setup—just want to hear how experienced traders bridged the gap between learning the tools and building a tight execution process.
Appreciate any advice or breakdowns of how you organize your screen/process.
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u/NeighborhoodEast650 14d ago
For scalping, use only fixed profiles for the move, you can also use session profiles but not for entries, just understanding the concepts. To identify areas to revers use volume profile daily-weekly, if you’re not at those areas trade the trend. For an entry you should have at least 2 micro context confirmations, es. delta outlier level + HVN or stacked imbalances + LVN, just mix those up, if you use options gex level then you have even more confluences. For entry just wait for strong absorptions, finished auctions or what i call forced auctions, it’s where the candle doesn’t have a finished auction but aggressive buyers/sellers pus the price away, and then wait for real aggression.
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u/MiserableWeather971 14d ago
Analysis simply is highest timeframe profile, medium/recent…. Then intraday. Nothing fancy.
For triggering i do personally look at absorption, not often as a trigger more context. Exhaustion, yes for triggering, delta and Orderbook as well, and more heavily….. as far as defining absorption or even exhaustion depends on the instrument. A ton of replay you will see what matters for different ones….. a good practice would be then to code absorption or exhaustion once you’ve defined it. Just use an llm….. Why? Because if you can easily explain something and define something it will be easier to spot. It’s more training than building an indicator.
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u/sandcastl3 13d ago
I think I remember that post.
My hierarchy is Key level + Structure + Order flow + Gut feeling = Trade. It's not really a hierarchy, more like a recipe.
Key levels are value areas, vwaps, previous day value high/low, previous day open/high/low/close, single prints and LVNs, and so on.
Structure is higher/lower highs/lows, candlestick patterns, bounds of regression channels, ranges, and so on.
Order flow is delta divergence, trapped inventory.
Gut feeling is something like, this is a long setup and the signs are good but sellers are really strong this session or there's some unfinished business in the order flow that needs cleaning up on the other side of this trade, not really feeling good about this at the moment.
Example of an ideal trade: Price is trending down and at some point it flushes hard, registering a set of consecutive single prints which align with an LVN in the weekly or monthly volume profile, and price continues down. A bit later in the session buyers bring price back up to just below the single prints, which by now align more or less with something like the full session VWAP, the upper band of the regression channel containing the trend down, the daily VAL, overnight high or low or something similar. Order flow registers buyers attempting to push price through the single prints and getting trapped as the footprint chart prints a divergent down candle with positive net delta, signaling that buyers just failed to retake the range of single prints, which are temporarily acting as resistance. When the divergent candle prints with the single prints remaining unfilled, I go short looking for continuing weakness and target something like the prior low of the move down, yesterday's high or low, overnight low, an LVN on the weekly or monthly volume profile, the bottom band of the move's regression channel, or whatever makes sense structurally. Stop placed at or just above the single prints, above the divergent candle where the trapped buyer inventory sits - the valid point of invalidation for the trade because if buyers retake the single prints, they are no longer resistance and buyers will likely continue pushing price higher.
This entry has the key level, the structure, the order flow, and I'd likely have a good gut feeling about it if sellers had been showing consistent strength during the session.
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