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Price Ladder Trading: Using Order flow to Stay in a Trade

DAX Trigger Point and Passive LVN 28 April 2018

Once a trade is in play, a trader has multiple options on how to execute that trade. In this case the trade was a break back through the opening price to target previous day’s low – a repeat of a trade pattern from earlier in the week.

In terms of execution, the trade is confirmed below 11843 however a sell through the last candle’s low at 11851 (see chart) provides a trigger point to enter before 11843 with a target of 11806. Once in the trade, order flow plays a big part in deciding how and whether to stay in, it can also enable size to be increased by using reference points created by the increased velocity of trade and volume. These areas are not observable from a candlestick, yet provide very clear points to add onto or enter a trade if the initial move has been missed.

This live AXIA daily debrief focuses on the price action observed on the ladder which firstly, confirms the move through 11843 but also provides a Passive LVN continuation trade – this order flow activity enables a trader to confidently place a stop above 11835 in order to stay in for the full target of 11806. Furthermore, understanding this strategy opens up an entry if the initial move has been missed or an opportunity to add on to an existing short from the 11851/43 area.

If you are looking to develop a career as a trader within a professional and successful environment, then the Axia Futures 8-week Intensive Trader ​Training is the most comprehensive in the industry based​ ​upon​ ​skill​ ​development​ ​within​ ​the​ ​proprietary​ ​futures​ ​trading​ ​environment.

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