Apr. 17 at 5:04 PM
How To Validate Breakouts With Order Flow
When price is breaking above previous highs with strong buy volume imbalances, it is a sign that this price movement is being strongly supported, so ride that trend until you see a major sell volume imbalance come in.
You can also verify the retest by watching the order flow trend compared to price action for divergence like what happened today after the breakout.
Price went to retest the previous highs after the breakout, and then wicked below that previous low but order flow was staying strong and trending up.
That is a perfect entry signal and the move to follow was a beautiful trade.
Similar patterns happened multiple times today on this major uptrend we have been seeing on
$ES.
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