Order Flow
Reading the tape: footprint, delta, absorption and the mechanics behind them. Articles in this category deal with how orders actually reach the book, not with indicator settings.
by Phil Wasmuth6 min readWhat Is Order Flow Trading? A Guide for ES and NQOrder flow trading explained for ES and NQ futures: aggressive vs. passive orders, the tape, DOM, footprint and delta, and how traders read them in context.
by Phil Wasmuth5 min readCumulative Volume Delta (CVD) ExplainedCumulative volume delta explained: how CVD is calculated from bid and ask volume, when to reset it, and how to read CVD divergence on ES and NQ futures charts.
by Phil Wasmuth5 min readDelta Divergence: Reading Absorption in Order FlowDelta divergence explained: why heavy selling without lower prices signals absorption, how to spot it on footprint and CVD, and how to confirm it at key levels.
by Phil Wasmuth7 min readFootprint Charts Explained: Bid/Ask and ImbalancesFootprint charts explained: how to read bid x ask numbers, delta and volume modes, diagonal and stacked imbalances, and unfinished auctions on futures charts.
by Phil Wasmuth5 min readAbsorption vs. Exhaustion in Order FlowAbsorption vs. exhaustion in order flow: how heavy volume without progress differs from a move that runs out of buyers or sellers, with footprint signatures.
by Phil Wasmuth5 min readVolume Profile, POC and Value Area for FuturesVolume profile explained for futures traders: point of control, value area high and low, high and low volume nodes, and session vs. composite profiles.
by Phil Wasmuth5 min readVWAP for Futures Day Trading: Session VWAP and BandsVWAP for futures day trading: how session VWAP is calculated, Globex vs. RTH anchoring, standard deviation bands and anchored VWAP for ES and NQ traders.