My DeepCharts Order Flow Setup (Full Walkthrough) — Transcript

Full transcript

1. 0:00What's up? It's Thrax. If you've been
2. 0:01watching me for a while, you've probably
3. 0:03noticed that on stream and in the videos
4. 0:06that I'm not really using at ATAS
5. 0:08anymore and I've moved over to deep
6. 0:09charts. I've been setting up my
7. 0:11workspace and transferring everything
8. 0:12over to deep charts and showing it on
9. 0:14stream for maybe the past 3 to 4 weeks.
10. 0:16A lot of you guys have been asking for
11. 0:18that workspace or asking for the
12. 0:20templates that I have. So, I built this
13. 0:22workspace from scratch and it's what I
14. 0:25look at every single day when I'm
15. 0:26getting ready to trade. So, in this
16. 0:28video, I'm going to walk through all of
17. 0:29it. Every chart that's on my screen, why
18. 0:32I look at it, what it is, how I use it.
19. 0:35We'll start at the top with how I frame
20. 0:36the auction and where I'm watching value
21. 0:38migrate to. Then come down to the
22. 0:40execution side and look at these
23. 0:42specific charts that I'm watching to
24. 0:44then execute on trades. These are the
25. 0:46same charts or the same setup or
26. 0:48workspace that you see me trade with
27. 0:50live every single day. And each of these
28. 0:52charts is answering a question. And I'll
29. 0:55tell you what that question is as we go
30. 0:58along. So let's actually start at the
31. 1:00top. So here we are. And I want to talk
32. 1:03about two charts first. And what this is
33. 1:05is it's a 60-minute chart where I remove
34. 1:08the candles. And I just want to see how
35. 1:10value has been migrating over the past 6
36. 1:12to 7 days. Now what these are is this is
37. 1:15the regular trading hours and the hollow
38. 1:18one is the extended trading hours. And
39. 1:20these are volume profiles that are
40. 1:22showing me how value has been migrating
41. 1:24over the past week or so. And I'm trying
42. 1:26to look to understand where have we
43. 1:27actually been doing business. Is value
44. 1:29migrating higher? Are we migrating
45. 1:32lower? Are we moving sideways and
46. 1:34potentially consolidating? Are we having
47. 1:36value areas that are stacking on top of
48. 1:38each other? And so every morning heading
49. 1:40into the open, well, I want to look at
50. 1:42this and I want to see exactly what's
51. 1:44been happening. What's been happening
52. 1:45during the overnight? Where is value
53. 1:47area low, value area high? the P of
54. 1:50prior sessions. So, that's what this
55. 1:52chart is, but I want to show you the
56. 1:54other chart and then I'm going to show
57. 1:55you exactly how I mapped out a level
58. 1:58today using both of these. Now, I want
59. 2:00to take a quick break to talk about the
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88. 3:01below. Now, let's get back into the
89. 3:02video. Now, on this second chart, what
90. 3:04this chart is is it's actually built off
91. 3:07of the auction framing template that
92. 3:09Deep Charts actually provides. And what
93. 3:12we have on here is we have a few
94. 3:14different things. The first thing that
95. 3:16you may notice is this large profile on
96. 3:18the right. It's anchored to the right.
97. 3:20Now, what this is is this is the
98. 3:21composite profile. So, we have the
99. 3:24composite value area. We understand
100. 3:26where the composite PC is sitting. Now,
101. 3:28we also have these white profiles as
102. 3:31well. What these are are these are
103. 3:33weekly volume profiles and these smaller
104. 3:35profiles are the RTH and ETH volume
105. 3:39profiles and we're watching how value is
106. 3:41essentially migrating over not only the
107. 3:43session not only the week but over a
108. 3:46larger broader view. Now if you notice
109. 3:49on the right side this chart is zoomed
110. 3:52out a lot. This is essentially the
111. 3:54highest time frame or broader picture of
112. 3:56what I'm looking at in the morning. Now,
113. 3:59here's how I use this, and I want to
114. 4:02explain how I actually mapped out a
115. 4:04level this morning. In the daily outlook
116. 4:06that we created, what I mentioned this
117. 4:08morning is that to the upside, we're
118. 4:10watching a level between 29,217
119. 4:14and 29,177.
120. 4:16Okay. So, why did I use that? And why
121. 4:20did I have that as my morning ceiling
122. 4:23essentially in the sense where if we
123. 4:25watch buyers push up into it and fail,
124. 4:28then we're failing to auction higher,
125. 4:29maybe we rotate sideways or even mean
126. 4:32revert back. Or if we're able to
127. 4:34actually accept past that ceiling, then
128. 4:36it can open up the door to a potential
129. 4:38expansion back towards prior value
130. 4:40areas. Now, what was actually sitting
131. 4:42there if we were to be before the
132. 4:45regular trading hours, before this
133. 4:46actually started to develop was we had
134. 4:49the prior RTH value area high. Not only
135. 4:52was there the prior value area for the
136. 4:55regular trading hours, but prior to this
137. 4:57session, we also had value area low of
138. 5:00the composite profile. So because
139. 5:02they're basically right next to each
140. 5:03other which now obviously as today the
141. 5:06auction has been forming and value area
142. 5:08has shifted in terms of value area low
143. 5:10for the composite profile it's no longer
144. 5:12in the same spot but in the morning what
145. 5:15we were looking at is we were
146. 5:16essentially looking at an area between
147. 5:18that 29,177
148. 5:21to 29,27.
149. 5:23The idea for this as we were heading
150. 5:25into the morning is if we are able to
151. 5:28actually accept past this area basing it
152. 5:31off of the composite profile as well as
153. 5:34the prior RTH profile. Now, if we were
154. 5:37actually able to accept above here,
155. 5:39which looks like we've been struggling
156. 5:40here this morning, then it would open up
157. 5:43the door to potentially looking for
158. 5:44value higher somewhere in this area. In
159. 5:47the event that we push up into this
160. 5:49being that we're treating this
161. 5:50essentially as are we going to be able
162. 5:53to accept back into the composite value
163. 5:55area or back above prior RTH value area
164. 5:59high. And if we fail to do so, then
165. 6:01chances are we may fall back as we're
166. 6:04potentially doing right now heading into
167. 6:06the PM session back towards where we
168. 6:08were building value the prior RTH and
169. 6:10where we were building value during the
170. 6:12ETH last night. So, I'm using these
171. 6:14volume profiles to map out a lot of the
172. 6:17key levels for my morning when I'm
173. 6:19deciding where I would like to see a
174. 6:21decision be made, whether it's
175. 6:23acceptance or rejection. Now, I'm not
176. 6:26going to walk through every single
177. 6:28setting on these charts just because if
178. 6:31you really want the settings, um you can
179. 6:34just go ahead and use the template. You
180. 6:35can download it and then apply it to
181. 6:37your own deep charts. The settings that
182. 6:39I am going to talk about is going to be
183. 6:42when we actually get towards the
184. 6:43execution charts. Now once we actually
185. 6:46determine levels and we look at how the
186. 6:48auction is forming day over day, week
187. 6:50over week and even over a broader period
188. 6:52of time once we map these levels of
189. 6:55location and we want to watch for what's
190. 6:57happening once we actually get into
191. 6:58them. That's where the smaller time
192. 7:00frame charts actually come into play. So
193. 7:03let's take a look at them. Now, here are
194. 7:05the first two charts that I'm typically
195. 7:07looking at. And this screen is usually
196. 7:10where I'm executing my actual trades.
197. 7:12Let's start with them one at a time.
198. 7:14Now, this chart here is a five-minute
199. 7:17time frame. Now, the purpose of this
200. 7:19chart using these delta profiles within
201. 7:22every single 5-minute candle is to look
202. 7:24at the participation and look at the
203. 7:25aggression from the participants and
204. 7:28understand whether it's getting rewarded
205. 7:29with price progression or not. So every
206. 7:32single candle is going to have its own
207. 7:34fiveinut delta profile. And what I'm
208. 7:37looking for in situations like this is
209. 7:39I'm looking for delta to be clustering
210. 7:42at the extremes of these candles. You'll
211. 7:45notice that I use delta profiles a lot.
212. 7:47Actually, I like to identify absorption
213. 7:50by watching the actual candles
214. 7:52themselves, watching the delta, watching
215. 7:54where the volume and the delta is
216. 7:56actually building to then use that to
217. 7:58make decisions when it comes to
218. 8:00absorption. So on this chart, besides
219. 8:03the fiveminute delta profiles, we also
220. 8:06have big trades. Now if we go look at
221. 8:09this, I'm using big trades. Now on the
222. 8:12big trades, everyone wants to always
223. 8:14know the settings for the big trades.
224. 8:16Now, this is something important to note
225. 8:18about these settings. When I'm looking
226. 8:20at order flow, when I'm trading, I
227. 8:22actually look at micro and Q. People
228. 8:25always ask me why. They say, "You
229. 8:27shouldn't do that. You should be looking
230. 8:28at the minis." I understand. I I totally
231. 8:32understand what you guys are saying, but
232. 8:34at the same time, I have literally
233. 8:36stared at micro NASDAQ and the tape on
234. 8:39the micros every single day for
235. 8:43thousands of hours for years. And I am
236. 8:46very comfortable and very used to the
237. 8:48numbers. I've been able to build a
238. 8:50filter to filter out noise over time.
239. 8:53And so I like looking at the micros.
240. 8:55Okay, we'll just get that out the way.
241. 8:58These settings for the big trades, they
242. 9:01are for MNQ. If you decide to use this
243. 9:04and you're looking at NQ, well, big
244. 9:07trades are not going to fire off. Why?
245. 9:10because I have a minimum filter here of
246. 9:13looking for big trades that are 250
247. 9:15contracts or above specifically for this
248. 9:18chart. So then let's say you go to NQ.
249. 9:20Okay, you're on NQ and you're only
250. 9:22looking for 250 contracts and above for
251. 9:25NQ. Well, you're probably not going to
252. 9:27see a lot of big trades unless a massive
253. 9:29order comes in on MNQ. At a 250 filter
254. 9:33minimum, you are going to see them
255. 9:34appear more often on the chart. So with
256. 9:37a combination of looking at the big
257. 9:41trades and looking at delta, I'm trying
258. 9:44to identify where participants are just
259. 9:46getting aggressive and is that actually
260. 9:49resulting in price progression. And if
261. 9:51it's not, then we can potentially use
262. 9:53that as information. If they are, then
263. 9:55again, we can potentially use that for
264. 9:58information. Now, how we do that is for
265. 10:00a separate video. We're just going over
266. 10:02my setup. But again looking at delta
267. 10:05profiles 5 minutes it has big trades. We
268. 10:09also are looking at the volume profiles
269. 10:13that are anchored to the right for the
270. 10:15extended trading hours and for the
271. 10:18regular trading hours. Now let's move on
272. 10:20to the next chart. Now this chart is the
273. 10:22actual chart where I typically execute
274. 10:24on. There are two versions of this
275. 10:27chart. One of them I'm experimenting
276. 10:28with right now but I'll talk about the
277. 10:31first one. It's a very similar thing
278. 10:33when it comes to what I'm looking at
279. 10:34here, except this is on a one minute
280. 10:36chart. Now, on the one minute chart,
281. 10:38what I have is also volume profile for
282. 10:41the current RTH session as well as the
283. 10:45previous ETH session. It also has VWAP
284. 10:49on here as well as the deviations away
285. 10:52from VWAP. And what I'm looking at in
286. 10:54these one minute candles is I have the
287. 10:57bid and the ask, but I'm also again
288. 10:59looking at a delta profile. And within
289. 11:02this, I am also using big trades. Now,
290. 11:05the thing about this chart is my big
291. 11:08trades filter is actually much lower.
292. 11:11So, if we go look at it, let's go to big
293. 11:13trades. I'm filtering for 150 contracts
294. 11:16on this chart specifically. And the
295. 11:19reason for that is because when I'm
296. 11:21executing trades, I'm looking for a
297. 11:23little bit more granularity or smaller
298. 11:27microaggressions
299. 11:28when I'm looking to actually execute on
300. 11:31the smaller time frames. And it's a
301. 11:33little bit different than the previous
302. 11:34chart where we're looking at a 5m minute
303. 11:36and we have a 250 minimum volume or
304. 11:39filter for the big trades. So a lot of
305. 11:42the times when I'm executing, I am
306. 11:44looking at this chart. I'm looking at
307. 11:46the one minute. I'm looking at where the
308. 11:48volume has been building and I identify
309. 11:50that through the PC of every single one
310. 11:52minute candle, but also I'm watching the
311. 11:55delta profile. So, here we are on this
312. 11:58chart. This is typically how my screen's
313. 12:00going to be set up. I'm usually watching
314. 12:02the 1 minute and I'm watching the 5m
315. 12:05minute here. Now, of course, I have
316. 12:06trading view up. I have my other chart
317. 12:08I'm about to show you on my other
318. 12:10screen. But once we actually enter into
319. 12:12location, let's say for today, because
320. 12:15we had that area sitting here between
321. 12:1820,000 between 29,220
322. 12:21and 29,177.
323. 12:23Essentially, when we get into this area,
324. 12:26I'm paying very close attention. And
325. 12:29what I'm paying attention to is I want
326. 12:32to see if we're going to, of course,
327. 12:34either accept above the the ceiling that
328. 12:36we have for the morning or if we're
329. 12:38going to reject out of it. So then what
330. 12:40am I looking at? Well, I'm looking at
331. 12:42the aggression of buyers. They're
332. 12:44rallying up into this area. We see this
333. 12:47move pushing up. And once we actually
334. 12:49get into this area, well, what do we
335. 12:51start to see? We start to see big trades
336. 12:53coming in from the buyers. We start to
337. 12:55see delta building at the extremes here,
338. 12:58but it's not resulting in any type of
339. 13:01price progression. And then we end up
340. 13:03seeing sellers stepping in. We see a lot
341. 13:05of aggression in terms of negative delta
342. 13:07showing up in this delta profile pushing
343. 13:10us out of this area, out of location.
344. 13:12This is the confirmation for me to look
345. 13:14for shores. This is actually a trade I
346. 13:16took today on this evaluation account
347. 13:19where we approached location that was
348. 13:22determined through the composite profile
349. 13:24as well as where the RTH value ceiling
350. 13:27was sitting from yesterday. We're
351. 13:28watching buyers come into this area,
352. 13:30buyers get aggressive, buyers not being
353. 13:33able to actually accept past this area,
354. 13:36and then the dominance shifting back
355. 13:38towards the sellers. And we see that
356. 13:40aggression, we see that follow through
357. 13:42from the sellers, and that is our
358. 13:43confirmation coming out of location. And
359. 13:47also being that this is also premium to
360. 13:49then look for a potential short
361. 13:51opportunity. And the way that I actually
362. 13:53do that is as I'm watching this, well,
363. 13:55I'm dropping down to this lower time
364. 13:57frame and I'm paying attention to the
365. 14:00one minute and I'm looking for the entry
366. 14:04models that I typically use when it
367. 14:06comes to entering into the trade, which
368. 14:09again is a whole separate video. I'm
369. 14:11just explaining the deep charts
370. 14:13workspace that I currently have. So, now
371. 14:16let's talk about the last chart that I
372. 14:18actually have up on my screen and it's
373. 14:20the chart that you guys typically see
374. 14:21when I'm live streaming. Now, this chart
375. 14:24is usually up on the other screen. Now,
376. 14:27what is this chart and what am I looking
377. 14:29at? Now, this is a five-minute chart.
378. 14:32Instead of there being delta profiles
379. 14:34inside of every single 5minute candle,
380. 14:36we're looking at volume profiles. I want
381. 14:39to see where volume is building. And
382. 14:41when I'm watching this, I'm looking for
383. 14:43volume to be building in the extremes of
384. 14:46the candles. I'm looking for P-shaped
385. 14:47profiles or B-shaped profiles or even
386. 14:50low volume nodes within these candles
387. 14:52themselves. And then of course, that's
388. 14:54when I go look at the delta profiles and
389. 14:56I look to see who was it. Was it buyers?
390. 14:59Was it sellers? And was it actual
391. 15:02absorption or was it not? And on the
392. 15:05right side, on this side, I have the
393. 15:07weekly volume profile. So instead of the
394. 15:10other charts where I'm looking at the
395. 15:13session profiles for the ETH and the RTH
396. 15:16on this main chart, the one that I'm
397. 15:18typically showing on stream, I'm looking
398. 15:20at the weekly profile. Not only am I
399. 15:22looking at the weekly profile, but I
400. 15:24also have the DOM expressed as levels
401. 15:26sitting on the right side. And the
402. 15:29purpose of this is I'm watching where
403. 15:31orders are actually clustering as the
404. 15:34auction is progressing throughout the
405. 15:35day. So, for example, right now we can
406. 15:37see a large order or orders sitting here
407. 15:40at 29,100.
408. 15:42Now, it may get removed, it may get
409. 15:44pulled, it may actually be there to get
410. 15:47filled. So, I'm paying attention to
411. 15:49where these orders are actually
412. 15:51clustering and where the liquidity is
413. 15:53actually resting. It's very similar to
414. 15:56looking at a heat map except the visual
415. 15:58representation of it is just a little
416. 16:00different. I'm not looking at bands
417. 16:02necessarily. I'm just looking for these
418. 16:04spikes of where liquidity is actually
419. 16:06resting, where it's beginning to cluster
420. 16:09or where we have a large amount of
421. 16:11orders sitting and how these orders are
422. 16:13building as price is moving back and
423. 16:15forth. Below here down here, I have
424. 16:18statistics and what these statistics are
425. 16:21is I'm looking at volume per five minute
426. 16:24candle and I'm also looking at the delta
427. 16:27per 5minut candle. So when I'm watching
428. 16:30the five minute, well, I want to make
429. 16:32sure that there's enough participation
430. 16:33happening where it makes sense for me to
431. 16:35actually engage in a trade. So, a simple
432. 16:39rule for me is when I start seeing this
433. 16:41number drop below 20,000, that's kind of
434. 16:44my threshold to say, you know, volume is
435. 16:47drying up a little bit because for micro
436. 16:50NASDAQ, anything below 20,000 contracts
437. 16:52on a 5minute candle is a little bit of
438. 16:54lower participation and typically not a
439. 16:57condition that I would usually want to
440. 16:58trade. So, as volume tapers off
441. 17:01throughout the day and we get closer to
442. 17:03where we start seeing every 5minute
443. 17:05candle be 11,000 contracts, 17,000,
444. 17:0810,000, 13,000, 18,000, it's kind of my
445. 17:12signal to myself that the day is
446. 17:15basically over. You know, of course,
447. 17:17right now we're coming out of the lunch
448. 17:19hour, so it makes sense on why it's
449. 17:21doing that. But then I'm also looking at
450. 17:22delta. I'm looking for potential
451. 17:24exhaustion. I'm looking for delta flips
452. 17:26in location where it actually makes
453. 17:28sense. And I'm keeping track of the
454. 17:31aggression of the buyers or sellers when
455. 17:33we're in location. I don't really look
456. 17:35at the delta on the statistics when
457. 17:38we're kind of in the middle of nowhere
458. 17:40or we're chopping because you're going
459. 17:41to see delta flips all over the place.
460. 17:43It's not very good information to try
461. 17:46and make decisions off of terms of using
462. 17:49a delta flip and chop because you're
463. 17:51just going to get destroyed. But I do
464. 17:52pay attention to this as well. So
465. 17:54there's five charts here and the main
466. 17:56thing that I'm really looking at when it
467. 17:57comes down to all of this is a few
468. 17:59different things. Okay, it's really just
469. 18:01a couple things on the main charts that
470. 18:03I showed in the beginning. I really just
471. 18:05want to understand where value is
472. 18:07migrating session over session, day over
473. 18:10day, week over week, and on the broader
474. 18:12picture of what's been happening with
475. 18:15the market. We're looking to see if
476. 18:17we're searching for new value, if we're
477. 18:20coming back and accepting back into
478. 18:22prior value, or even if we're trying to
479. 18:25get back into prior value and failing
480. 18:27and we're continuing a value down
481. 18:30structure, a value up structure, or if
482. 18:33we're potentially consolidating and
483. 18:35watching value areas overlap with each
484. 18:37other. We're looking at some of these
485. 18:39levels to determine location to prepare
486. 18:42for our day when we're doing the
487. 18:43outlook. And then once we actually start
488. 18:45trading, we start looking at these
489. 18:47charts where we start looking for
490. 18:50potential entry confirmations in
491. 18:52location to actually take a trade. Those
492. 18:54first few charts that I showed you, the
493. 18:57question is is where are we doing
494. 19:00business? How is value actually
495. 19:02migrating? And those charts are giving
496. 19:04me the answer and giving me the tools
497. 19:07that I need to understand where I should
498. 19:09be looking for a trade in terms of
499. 19:11location. These charts are asking the
500. 19:14question of are we accepting or
501. 19:17rejecting this location that I have
502. 19:21mapped out. Are we going to reject out
503. 19:22of it? Are we going to accept past it?
504. 19:25And so what do we look at? Well, we look
505. 19:27at the aggression or we're paying
506. 19:29attention to effort versus result inside
507. 19:32of location. And I'm using these charts
508. 19:34to determine that. And this chart here
509. 19:36is to understand where the volume is
510. 19:39actually being concentrated within each
511. 19:41of these five-minute candles, what the
512. 19:44weekly volume profile is looking like
513. 19:46and where orders are actually clustering
514. 19:48or resting liquidity is actually
515. 19:50clustering on the depth of market. So,
516. 19:53I'm using these charts in combination to
517. 19:56go from creating my daily outlook to
518. 19:59finding the levels I'm looking for
519. 20:01throughout the day to then once we
520. 20:03actually get into those levels,
521. 20:05determining whether or not it makes
522. 20:06sense to even take the trade in the
523. 20:08first place. And when context and
524. 20:11location and confirmation all come into
525. 20:14play, well, then that's when I go and I
526. 20:16take a trade. If you guys have any
527. 20:19questions about the way that I'm looking
528. 20:21at my charts, please feel free to ask in
529. 20:23the comment section down below. I'll try
530. 20:25and answer the ones that I can. And then
531. 20:27if you guys want to download these
532. 20:29templates, well, they are free. I will
533. 20:31give them to you. And the way that you
534. 20:33actually get it is you go down in the
535. 20:35description below. You go and join the
536. 20:38free community on and you can go
537. 20:40into the FAQs. It'll be a question like,
538. 20:43"What are the deep chart settings?" And
539. 20:45then you can download the workspace and
540. 20:47the templates for you guys to use. I
541. 20:48just wanted to make a quick video about
542. 20:50this because tons of people ask me for
543. 20:52my templates or my workspace or what it
544. 20:55is that I'm looking at. So, I hope that
545. 20:58that helps out a little bit. Let me know
546. 21:00in the comment section down below and I
547. 21:01will catch you guys next time I make a
548. 21:03video. Peace.