Quantum Flo Bias (QFB) Indicator

The Quantum-Flo Bias (QFB) indicator is a tool intended to help you follow intraday flow. It consists of a series of dotted lines which represent the likely clustering of orders throughout the day. Whether the market behavior favors this as support, or as resistance, is indicated by the colorization. Click to watch a short instructional video.

Green colored dotted lines imply support, Red colored dotted lines imply resistance. The goal of trading with the system is to trade with these levels of likely participant behavior behind you, rather than immediately ahead. Ideally, you also want to enter trades as close as possible to these levels, where your odds of a strong “push” in the favored direction are the best. To help indicate this, QFB will display shaded ‘safety zones’ in Green or Red, to suggest when the market is at a place where you can optimally enter.

Put very simply, the objective of the system is to Buy/Go Long inside of Green shaded zones, and to Sell/Go Short inside of Red shaded zones. As shown below:

There are, of course, times and places where the market is choppy. The tighter the market, the more ideal it is to place your entries at, or very close to, the nearest levels of support provided by QFB:

QFB will also provide numerous, very optimized entries into large trends. If there is a concern about “where support might be”, or whether the trend has totally outrun your available entries, QFB can provide what it sees as the safest places to get in:

Since QFB is intended to focus heavily on intraday flow, it tends toward being optimal on smaller timeframes. This is not to say it cannot provide insight slightly higher up, or that it requires full Globex session data to function:

Combining the QFB indicator with the Market State Indicator can provide a holistic view of both the broader trend, regime, and what the market appears to be doing at the immediate moment:

With these two tools, you should have the ability to visualize the direction and flow of the market. Simply being patient and waiting for an optimal entry inside the shaded regions, and/or using the growth and development of the levels to confirm what the Market State Indicator is telling you, can give you a significant edge.

A few key things to look for:

1. Uptrends/Downtrends that offer numerous re-entries. As long as this is happening, the market is re-confirming the trend. Building support from QFB can keep you in the trade, or offer another shot to enter. 
2. Wide ranges that offer limit levels within the shaded QFB regions - it is often possible to beautifully catch a top or a bottom in this fashion (though we advise against trying to do this too constantly).
3. Major moves into the Uptrend or Downtrend limit/target level, where you would expect a reversal. Oftentimes the market may consolidate at these places. By waiting for QFB to print some decent support for your reversal thesis, you can often wait for the market to “base build” and avoid the stress of blindly trying to catch the top or bottom.
4. Choppy zones that oscillate back and forth on QFB. All markets will eventually chop. The best way to use QFB is to zoom out slightly and to ask “What is the market trying to do right now?” If you see a region where we are varying back and forth between Red/Green, it’s often the case where we are midrange on the Market State Indicator, or we are in a very tight consolidation zone. Rather than continually trying to catch the very first sign of a break in the chop, waiting for the market to leave, and then rebuild new safety zones, or to retrace to an existing one, can offer a much more favorable entry.