ROFPAF(Reading Order Flow with Price Action Footprint:it

is a proprietary product/concept which you will not find it

elsewhere, although in one way or another, similar concept
might be represented in different way. For many years, I mainly
share about ROFPAF at conceptual level to help traders who are
interested to pursue the understanding of the market through the
lens of order flow dynamics. I think it is very important
regardless what trading methodology a trader wishes to pursue.
Below is an example of application.
When price has moved away from a pin bar, we know even
without reading the actual order flow data, that:
1) there is a build-up of limit order at the head of pin bar.
2) more build-up of limit order at the close of pin bar.
3) immediate presence of stop order at the tail of pin bar, and etc
Above is the example of illustration for a pin bar. Heaps of order
flow information can be extracted from a different bar, a small
group of bars, and a large group of bars, etc. When certain
information is selectively picked up according to what are
needed for a strategy, high probability setup can be formed.
Unfortunately, there is a limitation of what I can share here due
to several reasons. I would hope my sharing in this group can be
a door and lead you to a great journey of your own. So far, I am
happy that it has helped some.
Picture 1:
Red highlight: A typical swing down (aka ABCD / drop-base-
drop, or whatever it can be called using term from different
school of thought).
Yellow highlight: A double top (aka two attempt rule) in bar by
bar context.
Green highlight: completion of two attempt rule with a great
candlestick which acts as a great entry point. There are a lot
more about two attempt rule and how order flow behind it can
make it one of the best setups in trading but I will not lengthen
the explanation here.
Picture 2:
The red, yellow and green highlights represent the same things
as in picture 1.
The setup is similar to picture 1 but it is not to be taken. One of
the strong factors is that the origin of the swing is void.
Void? But the bearish pin bar at the origin is not broken!
Yes, it is void because the order flow cluster (aka supply &
demand zone) is cleared, at least for once. this will causes the
swing to lose its steam. Further explanation with order flow
might be required to explain the substantiation.
Picture 3:
The red, yellow and green highlights represent the same things
as in picture 1.
All things seems to work as good as in picture 1, but you have to
know where/when to exit.
The blue highlight: price came back to hunt your entry. Order
flow can explain why.
Entering on M15 and letting it run for long term can hardly work
out, unless you consider the bigger context.