Order flow, how important is it

More on order flow please traderAllen, so I can get my microscope out make the simple complex :-)
Back in work, so had to print out the charts after my 12 hour shift and scroll through the chat. That news trade at 10.00 was absolutely spot on, but I don't know if I would have had the faith to step in even knowing it was past resistance from 06.00 and strong support from the London opening hour.

Today I took an RB short. see below. I'm as close as possible to certain that it was a valid FPAS RB. I exited the trade with a 7 pip loss. Now, I'm ok with the trade. As winning and losing is all part of the probability of trading. Allen criticized the trade saying that I should have laid off because there was no order flow. He says that his winning percentage is higher than Bob's because he only takes RBs such as this one that have order flow. 



I'm copying Allen's comments in the chatroom because I want to ask some questions. (I edited it a little bit to make it more readable. I hope you dont mind). I added my comments in red.


allenbary: When you're watching for a breakout these are the steps that you take:



1) Once you've identified your range, mark it with a rectangle on your chart.
I always do that.

2) As the price approaches your expected breakout direction for high probability, it's time to get ready.


3) You already have your range marked, so you don't need to focus too much on your chart. Drag your time and sales window right up to the current couple of candles on your chart. it doesn't matter if you block some of them. You only need to see the current few. Now you should be able to focus on the current breakout candle and on the time and sales.
Although I dont hover it over the chart, I always have my Time & Sales chart next to it. Its not hard for me to see it at all times and its something that I always watch.

4) As price approaches the breakout be ready with your mouse over the buy or sell button.
 I always do that.

5) If price is approaching the breakout you're watching the candle but you should be able to see the time and sales clicking away. If the pace is not picking up, you wait as it will likely reverse on low orders


6) If the pace of time and sales starts picking up as you reach the breakout point be ready. As soon as price breaks out, the pace should be faster. Don't just slap the mouse button. There's typically a slight pause. As orders are absorbed the price will pull back up slightly. That's your moment to get in on a good fill
.

Allen: You mention that the pace 'picks up' and is 'faster'. In the trade I made today, and for that matter in almost any FPAS setup, the break out had a fast paced time and sales. Its too vague for me to understand how you determine that the T&S is fast paced. I'm thinking that you have 10+ years experience with it and I can't expect to be able to see the subtle differences in it at this early in my trading career. If thats the case, I totally understand. But if you're telling me its not that subtle, then I need more explantion. Because, like I said, its rare that the T&S doesnt move quick on the breakout of a nice squeeze. Then I'll find myself in the trade and you tell me that there was no order flow?


allenbary: The breakout is exactly described in FPAS. The only difference between me and Bob is I take only the ones that have lots of participation. That's what gives me a higher win percentage than Bob.


allenbary: Remember your a scalper, you make money off the order flow of other participants, it is there orders that push yours to profit. If there orders are not there, there is nothing to push your order to a profit. That time and sales window is your moneymaker keep it close to the price action on your chart.


THANKS FOR YOUR HELP. ITS ALWAYS APPRECIATED!!