Thin Stripes - Entering A Trend
How To Use Thin Stripes of Order Flow Coloring To Enter A Trend
For the purpose of entering a trend, or the beginning of a trend, using thin strips of color within the WOW Index, we will use examples where we are looking to enter an uptrend that will be defined by Higher Lows and enter a downtrend that will be defined as Lower Highs.
There are other ways to define a trend, but for our purposes of entering smartly using easy to visualize strips of color on an Order Flow Heat Map, this approach seems to be simple to express and simple for users to implement.
Entering an Uptrend
To enter either a new uptrend or an existing uptrend, you will first need to see Green WOW Index dominance accompanied by Higher Lows. If the market does not resume its uptrend, remove the Buy Stop.
If the Green uptrend is interrupted by a thin stripe of Red that is accompanied by a Higher Low, enter either on the resumption of the Green Order Flow, or place a Buy Stop one tick above the most recent pivot for your entry.
Entering a Downtrend
To enter either a new downtrend or an existing downtrend, you will first need to see Red WOW Index dominance accompanied by Lower Highs.
If the Red downtrend is interrupted by a thin stripe of Green which is accompanied by a Lower High, enter either on the resumption of the Red Order Flow, or place a Sell Stop one tick below the most recent pivot and enter there. If the market does not resume its downtrend, remove the Sell Stop.
These graphic examples below should help you get a feel for what this setup looks like. It is quite easy to trade and occurs quite frequently.
Hope that this works for you.