However, most of these trades are driven purely by emotion, with no concrete reasoning behind the decision. Entries are often made based on feeling rather than objective evidence.
By using Order Flow Presentation v2, we can read the smallest movements within the market and identify classic, high-quality reversal points.
So how should Order Flow Presentation v2 be used effectively?
1. The three core components
Order Flow Presentation v2 focuses on three key elements:
- Volume at the upper area of the candle
- Volume at the lower area of the candle
- The closing price of the candle
By applying this concept, we rely only on extremely simple but highly meaningful information to identify exhaustion and effort from both buyers and sellers.
Bullish and bearish reversals – What to focus on
For bullish reversal, our attention is always on:
Sell volume at the upper and lower areas of the candle
→ Low sell volume indicates that sellers are exhausted and no longer able to push price lower.
Buy volume at the upper and lower areas of the candle
→ Strong buy volume shows that buyers are stepping back in and beginning to push price upward.
→ When the candle closes within an area of strong buy volume, it confirms that buyers have taken control.
Bearish reversal context
For bearish reversals, the same logic applies – we analyze buy and sell volume at both the upper and lower parts of the candle.
Buy volume at the upper and lower areas
→ Large buy volume at the upper area shows buyers attempting to push price higher.
→ Weak buy volume at the lower area suggests buyers are no longer willing to continue driving price upward.
Sell volume at the upper and lower areas
→ Sell volume appearing at both the upper and lower areas of the candle signals increasing downside pressure and a strong bearish effort.
2. Real market example
Let’s break down why price reversed at this specific area:
First candle
- Very large sell volume at the lower area of the candle
- The candle closes near its low
→ Strong selling pressure dominates the market.
Second candle
- Low sell volume at the lower area
- Price moves higher, forming a long lower wick, and closes well away from the low
- Buy volume begins to appear at both the lower and upper areas of the candle
→ Buyers are stepping back into the market.
Third Candle
- Strong buy volume throughout the entire candle
- Price closes near the high
→ Buyers clearly take control.
→ The market reverses.
Victor Dan / Trader at ninZa.co
Order Flow Presentation v2: Order Flow Presentation v2: Order Flow NinjaTrader 8 (No Tick Replay)
