Learn to trade order flow with Jigsaw Tools

Learn to trade order flow with Jigsaw Tools

In this video, I’d like to talk about getting started with Jigsaw Tools.

Part of the focus will be on traders that do not currently use order flow at all. Those that need to learn the tools and learn to trader order flow. For traders moving from a product like XTrader, it will probably take just a few hours to get up and running with Jigsaw Depth & Sales.

We will also discuss some of the tools uniqe to Jigsaw such as the reconstructed tape and power meters.

For traders with no experience with order flow, there are 2 separate skills you need to acquire

1 — Reading the order flow
2 — Using order flow to make a trading decision

It would be a mistake to attempt to try to do both at the same time.

You need to first focus on reading the order flow. Being able to actually read and absorb the information that is being shown.

You need to set aside specific time to doing this and we will explain how shortly.

What you should not do is to run the tools and immediately use to compliment your trading. You should also not try to scalp the market on SIM.

You need to be focused only on reading the DOM. If you have charts up, or other screens that you currently use, your focus will gravitate towards them. It’s more comfortable to look at the things you currently use than this new set of tools.

If you enter SIM trades, you will suddenly have a bias and you initially need to do this without bias.

Later on, when you get past the “learning to read it” stage, it is a good idea to have a bias and a good idea to SIM trade.

Thick markets and thin markets do move differently.

Thin markets are markets like Crude, DOW, Gold that usually have less than 100 contracts at each level on the market depth.

Thicker markets are those like the E-mini S&P 500 futures, Eurostoxx 50, US Treasuries that have 100’s or 1000’s at each level on the DOM

There is certainly an argument that says for trade confirmation, the Depth and Sales is more useful for thick markets than thin markets. Areas tend to hold to the tick and you aren’t looking at action that occurs over so many prices.

Similarly, you could argue that the Tape tools and power meters are more useful on thinner markets. They have less trades going through overall and the changes in pace and exceptional size is easier to see.

With this in mind, we have Crude traders using just depth & sales and we have emini S&P500 traders using just the power meters and the reconstructed Tape.

The fact is that some tools suit some people and that will be a major factor in which you get the most use from.

So, for now, just keep an open mind.

First Steps…

The first thing you need to do is relax.

Look at this as something fun you are about to start.
Do not put pressure on yourself by trying to SIM trade or live trade as you go through this process. That will make it a frustrating activity and not a fun activity.
You are going to make progress that can be measured in hours — following this plan you are going to start seeing things in the first few days.

Allocate no more than 60-90 minutes per session to this. Any more and you will lose focus.
One or 2 times per day only.
Focus on one market or spend a few days at the start to select a market — just go through a few, pull up Depth & Sales, see if one seems to make more sense.
Do this at peak times, not when the market is dead but also not during crazy times like news announcements.


• 2 Columns only — current trades
— Size executing at each level
— Size executing at bid vs offer
— Changes in size
— Changes in the speed it ticks up/down
— How ‘easy’ it ticks up down
— Prices it seems to stick at
— Prices it seems to gravitate back to
— Prices no-one wants to trade
• And that is all.
— Ignore the depth, it is secondary

— Right now, you may have a perception that people that read this are looking at all of the numbers all of the time and so the numbers concern you.
— This is not true — we look at other information there sometimes but a lot of reading order flow is just the way price moves up and down and the numbers themselves are secondary.
— Don’t try to do math in your head, trying to tally up total trades either side as it moves. The difference will be obvious or it wont be important.
— After about 5 or 6 of these 60-90 minute sessions, you will start to see things occurring

More tutorials here: http://www.jigsawtrading.com/learn-to-trade/free-order-flow-analysis-lessons/


  1. MrKirin12 on October 10, 2022 at 3:18 am

    Thank you Peter. This is a good guide to starting with order flow. 

  2. gurdjieff46 on October 10, 2022 at 3:23 am

    It would be great if you could add those tutorial links to the description info.

  3. Jacob Rainer on October 10, 2022 at 3:24 am

    what are the commissions for making one trade, and what ar account deposit minimums?

  4. msr on October 10, 2022 at 3:33 am

    Hi sir,sathish 4m india.after watching u’r videos most of my doubts r clarifing.SImply one is in indian trading platform after crossover happened orde need to be placed .all inducator s fallows price but price never fallow any indicatornaa.but there is no option is here.i m really vexed up with these guys.would u solve my problem.My problem is i jusy want to use ninja8 whenevet order is place on it is to be placed my indian platform.plsssss reply me.

  5. ttraderjim on October 10, 2022 at 3:33 am

    Helpful, thanks!

  6. gurdjieff46 on October 10, 2022 at 3:36 am

    Very helpful!

  7. Pablo Gaby on October 10, 2022 at 3:48 am

    What is the black line that moves with prices? Sorry, but I can’t figure out.

  8. Dion Roy on October 10, 2022 at 3:51 am

    Welly’s FIO account is cancelled? Anyone know his Youtube video name?

  9. E L on October 10, 2022 at 4:03 am

    Wow this is the introductory video? My head was swimming by the 6:00 mark… Anyone doing this profitably is likely smarter than me!