Daemon Goldsmith Order Flow Trading For Fun And Profitpdf High Quality Jun 2026

Traditional technical analysis assumes that past price patterns repeat themselves because of human psychology. Order flow trading operates on a more direct premise: price moves because of order execution. By observing the immediate supply and demand, traders attempt to position themselves on the side of the dominant market participants. The Role of Market Participants

Absorption occurs when aggressive market orders attempt to push the price through a level, but a massive wall of passive limit orders absorbs all the volume without letting the price advance. For example, if market buyers purchase 5,000 contracts at $100.00, but a passive seller keeps replenishing the ask, the buying power is absorbed. When the buyers exhaust their capital, the price typically reverses downward. Aggression and Momentum daemon goldsmith order flow trading for fun and profitpdf

Before looking at footprints, identify major daily or hourly support and resistance zones using Volume Profile. Look for where price likes to accept, and Low Volume Nodes (LVN) where price rejects quickly. Step 2: Hunt for the Liquidity Pools The Role of Market Participants Absorption occurs when