Order flow trading is a method of trading that goes back to the early 1900s. The “tapereading strategy” required some effort to master it. It provides what traders call “market-generated information.” Information that is both precise and predictive and transparent to 100. ATAS can put this information directly into the chart and filter it.
The “Big Money”
“Big Money” / “Smart Money” are relative terms that depend on the traded market and instrument. Big money includes: governments, commercial traders, institutions, banks, commercial banks and hedge funds. Essentially, “big money” is a trading measure that can create a market imbalance. By tracking down legal insider transactions through volume, you can detect trades and trends before the crowd does.
ATAS helps them to identify high interest from buyers and sellers at various price levels. Furthermore, these price levels serve as entry, support and resistance zones that lead to a significantly better “opportunity risk ratio” and minimize the initial risk of each trade. This information helps traders to define risk and liquidity on the basis of the same level of transparency that was previously only available at institutional level.
All indicators including candlestick charts (yes, the candlestick is an indicator) are a derivative of the order flow. Day trading based on traditional indicators will therefore always lead to late “after-the-fact” trends that require larger stops and give you less consistency in your trading; This is why professional traders trade with the order flow, or at least a combination of both with our trading software.