From TradingView · · 1m 20s
Two ways to trade ETH order flow
A perpetuals trader lays out how CVD and volume delta point to the next ETH move, and where liquidations wait.
In brief
A perpetuals trader lays out how CVD and volume delta point to the next ETH move, and where liquidations wait. Order flow gives you two entries: ride the dominant direction, or wait at a key zone and let the reaction tell you what to do. Originally reported by TradingView.
Reading ETH by flow
The setup is a long on ETHUSDT perpetuals, built from cumulative volume delta and volume delta rather than price patterns alone.
“An analysis of CVD and volume delta.”
Zones plus flows
Combining price zones with the direction money is actually moving is what turns raw delta data into something a retail trader can act on.
“By assessing price zones and the direction of market flows, a trading strategy can be developed for practical use by retail traders.”
Strategy one, follow the flow
Open in the direction of the dominant flow. Decide where price is likely headed, then size and place the entry around that read.
“The first strategy is to open a position in the direction of the dominant flows”
Always mark the liquidation
The flow trade is only half done without mapping the potential liquidation zone first. That zone is where a right idea still kills the position.
“while necessarily assessing the potential liquidation zone”
Strategy two, wait and watch
Let a key price zone get reached and executed, then judge the reaction through the order book and algorithmic volume analysis before committing.
“then evaluate the price reaction through order-book analysis and algorithmic volume analysis”
Target reached
The idea was posted around the 2608 to 2657 area and updated hours later as closed at target, so the flow read played out on this one.
“Trade closed: target reached”
The short version
Order flow gives you two entries: ride the dominant direction, or wait at a key zone and let the reaction tell you what to do.
