Before you dive into these lessons, take a look through the topics and the descriptions. It should be fairly easy for you to figure out which ones make most sense for you.
New to Jigsaw Tools?
This video is for people new to the tools and wanting to learn how to get the most from them. We don’t cover order flow theory here, we cover the steps you need to take to get the most from the tools.
Order Flow Foundation Course
We are proud to bring you the Jigsaw Trading Order Flow Foundation Course. This is the most comprehensive course in Order Flow available anywhere on the internet. Not only is this the most comprehensive course on the internet, professional traders are telling us it surpasses the depth of education they received in order flow courses their employers paid for. A number of prop shop interns have called us and told us their prop shop is pointing them towards our videos too. Not only that but other trading educators/trading room hosts are pointing their customers here to get specific information on Order Flow.
There is over 5 hours of educational material here. Don’t attempt to do it all in one sitting. Don’t think that every piece of information in here is essential for your trading. We cover a broad range of topics here and that doesn’t mean you need to hang on to every word.
I – Introduction to Order Flow
In these lessons, we discuss order flow discuss the theory behind Order Flow and how all Order Flow tools are basically a variation on a common theme. Topics include: Potential benefits of using Order Flow. Core liquidity concepts and mechanics of price movement. A walkthrough of the most commonly used order flow tools, the benefits and drawbacks. Liquidity vacuums occurrence and opportunity. Elements of a reversal. Second entries and how to trade them.
|Part 1 – 1hr 44 mins
||Part 2 – 22 mins
II – Practical Application of Order Flow
In these lessons, we discuss a number of ways Order Flow information can be applied. We then take an intensive look at the Order Book, how it’s used and the process for learning how to use it. We look at both the teaching methods emploed by proprietary trading firms and Jigsaws own recommendations for home traders for learning how to use the Order Book. Topics: The liquidity/price action relationship. Reading the Order Book – A look at the philosophy most successful order flow traders adopt. The role of intuition and discretion. We will look at the use of the order book in prop shops and how prop shops teach their traders how to read order flow. We will look at the drills they use as well as how you can put together your own plan to learn to read order flow. Reversals – Thickening up (aborption), Momentum, Spoofing – We revisit reversals and discuss the importance of being able to spot momentum, absorption and the significance of spoofing. Thin vs Thick – A review of the differences between applying order flow on thick and thin markets
|Part 1 – 1hr 11 mins
||Part 2 – 1 hr 4 mins
III – Introducing Order Flow to Your Trading
In parts I & II, we discussed a number of ways that Order Flow information can be used. That doesn’t mean you need to do all of these things at once. In fact, you’d be taking on way too much by trying to implement all of these things. So you need to make a plan. Tackle this in bite sized chunks.
In this video, we make some suggestions on how to assess which is the best way forward for you. First of all, an assessment of where you are with your trading today. We give suggestions of ways to start – from just using Order Flow to confirm trades after you enter, to having a strategy completely based on short term trading Order flow signals.
We discuss how to implement these changes in such a way that you can track their effectiveness. We consider ‘gameplay’, how certain areas are gamed by larger players to put you offside. We take a look at the ‘Flip’ and how to recognize if a flip is being executed. You may not want to join these games but you do want to know when one is being set up against you. We take a look at the difference in Order Flow activity in ‘crowded’ and ‘uncrowded’ areas and how you might need to adjust strategy from an Order Flow perspective in these areas. We also take a look at a slightly different way of thinking about stops in a ‘real world’ market perspective as well as how stops gather vertically and diagonally and how that can impact Order Flow.
|Part 1 – 1hr 25 mins|
IV – Day Trading Without Charts
is discussed quite often on Trading Forums. Most of the discussions are based around whether day trading without charts is even possible. It’s as if you were discussing “trading blindfolded” or “juggling while riding a unicycle”.
People aren’t discussing the merits of one type of analysis over another, they have already decided that this chartless trading must be something really, really difficult or just downright impossible.
In these videos we look at using the intraday volume profile to find good locations to enter trades. What we will be doing is boiling trading down to a few fairly simple concepts. Who is long? Who is short? Where are traders trapped? Where can we get into the market with minimal risk and good potential reward? Rinse and repeat.
This is not terribly complicated or difficult, it just requires you to think about the market in a certain way. This doesn’t mean you need to throw away charts either. You can incorporate this sort of analysis into your chart based trading too. It’s just another way of looking at the action.
|Part 1 – 59 mins
||Part 2 – 19 mins
V – Post Entry Trade Management
Up to now, you could be forgiven for thinking that reading Order Flow is all about getting into trades. It isn’t. Why stay in a trade if the Order Flow is obviously against you? Why exit a trade if price moves against you but the Order Flow is weak? I am not suggesting that you need to watch every tick. In fact, the way I trade is that I ‘micro-manage’ the early part of the trade and then let the trade run once I have taken some profits. In this lesson , we talk about how to manage trades in real time.
In the 2013 version, we then take 2 live random trades (yes, just total pot-shots) and discuss the action we see after entering and what that means in terms of cutting the trades or giving them room to run. Obviously, this is just 2 trades on a live market, so it doesn’t cover every possible scenario but it’s the concepts that count. Every trade is different after all.
Note that the 2014 version, we take a lot more trades and talk through much more market action. It’s probably better to start on the 2014 version.
|2013 Version – 57 mins
||2014 Version – 1hr 7 mins
VI – Trading Slow Choppy Markets (aka “The Summer Time Chop”)
At certain times of the year, the volume and volatility of the markets drop drastically. Most notably this occurs during the US Summer Time and the Christmas to New Year Holiday period.
Volatility is never constant and it has a tendency to slow down intermittently throughout the year. When this happens, many traders step back not really having any way to approach the new “personality” of their markets.
In this video we look at this sort of slow, choppy, range bound action. The benefits and drawbacks of this sort of action, how to define market entry and exit points and how to manage the trades. The bottom line is that this is a set of very specific market conditions and you can use the specific characteristics of these choppy markets to your advantage if you understand how they work.
VII – Anatomy of a Reversal
There’s a school of thought that says those that got into the market at the high or the low of the day are the best of professional traders that paid “wholesale prices”. That everyone else paid “retail prices” and are mere amateurs. Yet sometimes there’s just a handful of contracts traded at the extremes, so are we to believe that 20 contracts of professional trading turned the market around?
It’s great to buy the low of the day unless it’s the fourth time you tried it and the market ran through you on the first three attempts. At Jigsaw Trading, we have a name for those that look for longs when the market moves down (and vice-versa for shorts), we call them “permafaders”.
You can’t ignore major intraday reversals as a day trader but taking a shot at every support/resistance level doesn’t work. Trending markets tend to move, range, more, range and so on. Each time the market goes into a temporary range, there are traders jumping in thinking it’s reversed.
In this webinar, we look at ways to avoid getting caught by these “fake reversals” and how to distinguish between them and an actual turn in the market. Once you understand the anatomy of a reversal, it becomes much easier to stay on the right side of the market.
So How Long Does It Take To Learn How To Trade?
Every new trader wants to know this and there’s 2 ‘most common’ answers to this question. On internet trading forums, they’ll tell you 10,000 hours. Which is 5 years work full time. If that was right, prop shop employees would be there for 5 years before making any money for the firm and themselves. These people would not be in business if the 10,000 hours rule was true. On the other hand, many trading educators will tell you “it’ll take as long as it takes” or “it depends how much effort you put in”. Both are correct to an extent but both completely manage to avoid giving you any sort of real answer.
There’s 2 aspects to how long it takes to learn. First – how focused you are (i.e. not jumping from technique to technique). Second – whether you are following a path that breaks things down for you so you can bite off a chunk at a time. Many people say to us “your 14 day money back guarantee is too short because I’ll never learn it all in that time”. I agree – but the point is not for you to learn it all, it’s enough time for you to make significant progress. That progress is enough for you to see what we see and get a good understanding of why this works. It is not long enough to turn you into a superstar trader.
This video discusses the learning curve and is very relevant to people new to both trading AND order flow.
So you will absolutely gain some excellent skills with 20 hours or practice. In fact, you will see improvements at 6 hours IF you follow our “New To Jigsaw Tools” video below. Traders that have followed this approach have been trading live profitably in 12-14 weeks. Some take longer. Some keep looking for magic bullets and never get there.
This video is for those of you totally new to trading and those that feel they are ‘spinning the wheels’ – working at it but not getting anywhere. This video discusses what might be driving your approach to trading and some alternatives you may not have considered. We go back to the very basics of considering “What is trading, anyway?” and give some food for thought that might lead you down a different path.
Tape Reading/Order Book Analysis with Jigsaw
This is our original course from 2011 where you get the theory, the “why” and not the “what”.
These ten lessons are an introduction to both Tape Reading and the Jigsaw Tools. Tape Reading/Order Book Analysis is not a “quick fix”, rather it is a method of reading a market that takes time to learn. Unlike a mechanical setup, Tape Reading isn’t something that will one day stop working. As a method of reading a market, Tape Reading will allow you to adapt to changes in the market as they occur over time.
The bottom line is this: A change in order flow comes BEFORE a change in price.
- Lesson 1 – The Basics
- Lesson 2 – The Benefits – Lowering Your Risk
- Lesson 3 – Learning Curve
- Lesson 4 – Tape Reader Setup
- Lesson 5 – Summary Tape
- Lesson 6 – Reconstructed Tape
- Lesson 7 – Depth & Sales
- Lesson 8 – Practical Use Of Cumulative Delta Charts
- Lesson 9 – Order Flow Setup
- Lesson 10 – Iceberg Orders
- Lesson 11 – Now that you can read it… (with Bonus video from L2ST)
If you have any questions – feel free to contact us on firstname.lastname@example.org
I get a lot of messages from customers, this one is from Paulo Braga and it really struck a chord with me. Paulo is just starting out with his understanding of liquidity and order flow. I think Paulo describes it best: Message from Paulo
Guy Bower Propex Australia Training Videos
Guy Bower is a trader, author and trainer of the interns at Propex, an Australian Prop Firm (also with offices in Singapore). Guys YouTube page has a mixture of educational and live trading videos.
This content also covers trading thinner markets in Asia. This will be especially interesting to those of you trading Gold, Crude, YM futures as well as those in Asia trading markets like SPI.
Webinar – Proprietary Day Trading – The ‘No BS Way’
Jigsaw and John Grady of “No BS Day Trading” gave this webinar to the NinjaTrader community on the 11th July, 2012. In this webinar, John gave an overview of how proprietary trading firms trade US Treasuries. John traded professionally in a proprietary trading firm and now trades his own account. This is an excellent insight into the inside of the industry and professional traders actually operate.
Order Flow Analysis on Thinner Markets
As well as the videos from Guy Bower above, we also have a video from a Jigsaw user on trading thinner markets. I met this trader doing a combine with TopStep Trader, which he passed with flying colors. To cut a long story short, we got chatting and he agreed to do a video for Jigsaw to help people with the thinner markets. We have many Crude traders using Jigsaw as well as people trading the thinner Asian markets. This is for you.
Excerpt From “The ES – When To Enter”
This is a mixed lesson in trade location and order flow. I am making this available for free as it deals with slow churny days on the ES that lots of people seem to be struggling with: