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Orderflow

CL / Crude Oil ShortContext: • Monthly: First signs of bearish orderflow. Bearish FVG in the making • Weekly: Bearish FVGs getting respeced • Daily: Rejection and break below prev. day low. Caution because of two bullish FVGs Idea: • 1h-4h Mitigation Block with 1h close below prev day low. • Respecting 1h FVgs • Inside current 1h candle on 15min closed last 15min bullish FVG • Potentially building a balanced price range on 15min → Long around prev. day low about 77.88 Target: • 1st would be currend day low • 2nd: Upper limit of daily FVG at 77.22 Entry / Stop: • Reversal Setup with stop above the entry signal • Or at 77.88 with stop about 78.05 Signal invalidated: • breaking lower withoug looking back • Prive going above 78.05 I want the current 15min-Candle to close inside the range of the previous 15min candle. Be careful about News in about 30minutes! Please feel free to comment
NYMEX:CL1!Short
by MichaelBw
EUR/CHF ShortContext: • Monthly Rejection confirmed • Weekly build a RBD with FVGs • Daily consolidated for 3 days below Swing Low and left that base Idea: • Short on 4h-Supply Entry Area: • 0.9642 - 0.9670 Entry Signal: Two options • LMT on 4h Supply • Reversal on lower timeframe like 1h Stop: • Above Supply or entry setup Target: • 0.9565 (last bullish montly candle low) Scenario invalidated: • Bullish Reversal into breakout-Range, i.e. above 0.967 • If we build up momentum and create another base → would be new scneraio Please feel free to comment!
Short
by MichaelBw
Notcoin is Bullish or Bearish ?The chart is for the cryptocurrency pair BINANCE:NOTUSDT NOT/USDT from Binance , analyzed on a daily timeframe. Here is a breakdown of the analysis presented: 1. **Current Price**: The current price is approximately 0.015983 USDT. 2. **Price Zones**: - **Fair Value Gaps (FVG)**: Two Fair Value Gaps are highlighted on the chart, indicating areas where price movement was rapid and may return to fill these gaps. - The first FVG is around the 0.017000 USDT level. - The second FVG is around the 0.013500 USDT level. 3. **Order Blocks (OB)**: These are areas of high buying or selling interest, often leading to price reversals. - Two OB+ (Order Block) areas are noted, correlating with the FVGs. 4. **Liquidity Zones**: - **Buyside Liquidity**: This is marked at a higher level, indicating an area where there may be a significant amount of buy orders. The specific levels are marked at 0.029300 USDT and 0.037000 USDT. 5. **Price Projections**: - **Bullish Scenario**: If the price moves upward, it could aim for the buyside liquidity zones at 0.029300 USDT and then 0.037000 USDT. - **Bearish Scenario**: If the price declines, it might target the lower OB and FVG areas around 0.013500 USDT. 6. **Volume Analysis**: The volume bars at the bottom indicate trading activity, with a notable increase during the recent price rise. 7. **50% Shadow**: A level marked as "50% Shadow" which might be an important retracement or equilibrium level. ### Interpretation: - **Bullish Indicators**: If the price can sustain above the current FVG and OB areas, it may attempt to reach the higher liquidity zones. This bullish scenario is illustrated by the green and black arrows projecting upward movements. - **Bearish Indicators**: A failure to maintain the current levels could result in the price dropping to fill the lower FVG, supported by the red arrows projecting downward movements. ### Conclusion: This chart suggests a critical juncture where the price may either move up towards the higher liquidity zones if it can maintain above the current FVG and OB levels or potentially drop to fill the lower FVG if it fails to hold these levels. Monitoring the price action around these key zones and the volume dynamics can provide further insights into the likely direction.
by Pedi_wxe
2
USD/JPY LongContext: • W and M showing (yet to be confirmed) rejections: Neutral with bullish touch • Respecting Daily FVGs • 2h big bullish FVG, 4h close above equal Highs Idea: • Entry in area between 156.600 - 156.15 with LTF reversal (e.q. 1h) Scenario: • Entry area should be approached without bearish FVGs • 4h close below 156.49 (Equal Highs): Caution! Scenario terminated: • 4h Retracement below 156.15: Trade is off Stop: • Determined by your entry setup Please feel free to comment with other ideas or questions.
Long
by MichaelBw
1
AUD/NZD ShortContext: • Monthly neutral / sideways • Weekly bearish FVGs, ignored bullish order block • Clearly bearish Idea: • Short at daily FVG Entry: • Entry Range: 1.0774 to 1.0787 • Entry Signal: Reversal Setup on 30min - 1h Scenario: • Liquidity sweep above 1.0774 (dashed line) • Avoid building a FVG on 4h Stop: • Above your Reversal Setup / Entry Setup Scenario invalidet • 4h Close above 1.0771 → Next location would then be 1.0806 Please leave a comment if you have any suggestion or question.
Short
by MichaelBw
How Can You Trade Using Order Flow? 3 Trading StrategiesHow Can You Trade Using Order Flow? 3 Trading Strategies Understanding the intricacies of order flow trading unlocks the door to deeper market insights, revealing not just the movements of prices but the forces driving them. In this FXOpen article, we’ll explore how order flow works, its components, and how it can be used within three comprehensive trading strategies. Understanding Order Flow Trading Understanding order flow in trading involves examining where buy and sell orders might rest in the market. Essentially, it's about understanding the action behind price movements rather than just the movements themselves. At its core, order flow reveals where traders are placing their orders and at what price, offering a glimpse into the potential future direction of the market based on the current levels of buy and sell orders. When traders talk about order flow, they're looking at the accumulation of these orders at various price levels, which can indicate areas of strong buying or selling pressure. For instance, a significant number of buy orders at a certain price level might suggest a strong demand at that level, potentially leading to a price increase if sell orders cannot match this buying pressure. Conversely, an abundance of sell orders could indicate a supply level that, if not met with equal buying interest, might drive prices down. Components of Order Flow Chart Trading In the realm of trading, dissecting the order flow is akin to peering into the heart of the market, revealing the intentions of traders through the movement of buy and sell orders. Here's a closer examination of the core order flow indicators. Understanding these components allows traders to interpret order flow directly from the chart, providing insights into where the market might head next based on past and present trader actions. Order Blocks (Supply and Demand Zones) In analysing order flow on a chart, order blocks, or supply and demand zones, appear as areas where price action has shown significant movement away from a particular level, indicating a concentration of buy (demand) or sell (supply) orders. These zones are typically highlighted by a sudden surge or drop in price, leaving behind a footprint where future price often reacts. For example, a demand zone might be identified by a rapid price increase from a specific area, suggesting buyers overpowered sellers significantly. Most importantly, when the price returns to one of these areas, it’ll typically reverse. Market Structure/Trends The market structure, or trend, is visible through the series of highs and lows on a chart. An uptrend is recognised by ascending peaks and troughs, while a downtrend is marked by descending peaks and troughs. These structures show order flow traders the prevailing direction of market sentiment. Imbalances Imbalances manifest as large, directional candles that break away from a consolidation area, signifying a sudden imbalance between buyers and sellers, usually with little to no pullbacks. These are often accompanied by increased volume, which may suggests a strong commitment from traders to move the price in a specific direction. Volume Volume is directly observable on a chart, usually depicted as bars beneath the price action. High volume bars accompanying significant price moves validate the strength of that move, implying a robust interest from the market in that price level. Conversely, low volume may indicate a lack of conviction, suggesting that the price move may not be sustainable. Interested readers can learn more about these components and how they interact with each other in our comprehensive article on order flow analysis. Order Flow Trading Strategy: Three Examples Let’s now take a look at how these components can be used in three order flow trading strategies. Consider applying them to real-time charts in FXOpen’s free TickTrader platform to gain the deepest understanding. Liquidity Sweep at Order Block/Supply or Demand Zone The concept of a liquidity sweep within an order block stands out for its nuanced approach to capitalising on market reversals. This strategy hinges on the premise that price movements in these critical zones often preclude a significant direction change, making them ripe for reversal entries. However, while leaving a simple limit order at these areas may be tempting, unforeseen news or a strong trend can cause the price to trade beyond it. Therefore, the theory states that looking for confirmation is often best. Using the idea of a liquidity sweep or a bull/bear trap, traders can identify higher probability setups in these areas. Entry Traders typically identify an order block, marking zones that prompted a significant imbalance and strong directional price move. Watching for the price to approach these zones is key, with a keen eye on the price action within the zone for signals of a potential reversal. The formation of new highs in a supply zone or lows in a demand zone accompanied by a liquidity sweep (a brief breach of these highs/lows followed by a quick return) may serve as a trigger for entry. The appearance of reversal patterns, like a shooting star, hammer, or engulfing candlestick, may indicate the market's rejection of prices beyond the zone. Stop Loss Placing a stop loss just beyond the boundary of the supply or demand zone potentially safeguards against the risk of a genuine breakout. Take Profit Profit targets may be set at the nearest opposing supply or demand zone, usually where another significant imbalance lies, offering a strategic exit point. Moving Average Crossover at Order Block/Supply or Demand Zone Integrating moving averages into the analysis of order blocks or supply/demand zones offers traders a quantitative lens through which market sentiment can be gauged more precisely. This strategy particularly revolves around the utilisation of two moving averages. We’ve used Exponential Moving Averages (EMAs) with periods of 9 and 20, leveraging their sensitivity to price movements to identify potential reversal points within these critical market zones. However, traders can use whichever type or length they prefer, though a balance should be struck between responsiveness and mitigating false signals. Entry The trader identifies an order block where a substantial move has previously occurred, leaving behind a noticeable imbalance in the price chart. As the price revisits this zone, attention is directed towards the EMAs' behaviour. For instance, a crossover of the 9-period EMA above the 20-period EMA signals bullish momentum, whereas its crossover below the 20-period EMA reflects bearish momentum. Entry may be considered once the moving average crossover aligns with the anticipated direction of the reversal, indicating a strengthening trend. This signal may be further validated if accompanied by a liquidity sweep or specific candlestick patterns within the zone, potentially enhancing the conviction of the trade. Stop Loss A stop loss could be placed beyond the zone’s extremes. Given the added confidence from the moving average crossover, the stop loss could also be positioned just beyond the most extreme high or low when the price entered the zone. Take Profit The take-profit target may be set at an opposing supply or demand zone. Such zones are anticipated to act as natural barriers where the next significant price reaction could occur. Impulse and Correction Stop Order The Impulse and Correction Stop Order strategy leverages the dynamic reaction of prices at supply or demand zones, focusing on the price action that follows these pivotal areas. Recognising that initial reactions from these zones can be sharp, signalling strong market rejection, this approach waits for a pullback or correction as a secondary entry point. This method suits traders looking to capitalise on the momentum shift or those who may have missed the primary reversal opportunity within the zone. Entry Traders monitor for a pronounced impulse move away from a supply or demand zone, indicating strong market rejection of these levels. A subsequent pullback or correction phase is observed, ideally filling the imbalance left by the initial impulse. This correction signals the market's natural attempt to retest the zone before a potential markup or markdown begins. A stop order may be set at the low (for bearish setups) or high (for bullish setups) that initiated the correction. This positioning aims to capture the breakout moment that confirms the market's commitment to the new direction. Stop Loss The stop loss may be placed beyond the correction. This placement is strategic, potentially minimising loss if the anticipated breakout does not materialise and the correction reverses direction. Take Profit The take-profit point may be chosen within a suitable opposing zone, considering the optimal risk/reward ratio or strong support/resistance levels. The Bottom Line In essence, the realm of order flow trading offers a rich tapestry of insights, enabling traders to navigate the market with a more informed perspective. Through the application of these strategies, traders can potentially align themselves with the underlying momentum of the market. For those looking to dive deeper into these strategies and apply them in real-time market conditions, opening an FXOpen account provides access to a platform where such sophisticated analyses can be executed, bridging the gap between theory and practical trading. FAQs What Is Order Flow in Trading? Order flow represents the myriad of buy and sell orders executed in the market. It acts as a snapshot of market sentiment, showing where and how traders are placing their orders, which in turn influences price movements. How to Read Order Flow? Reading order flow involves analysing the data on the volume of trades, the price levels at which they are executed, and the type of orders (buy or sell). Traders often use specialised software that visualises these data points, though they can be identified on charts through the use of order blocks and imbalances. How to Trade Order Flow? Trading order flow typically involves looking for signs of imbalance between buy and sell orders and trading from order blocks. Traders often enter positions based on the anticipation that price will fill these imbalances and reverse from order blocks. Why Is Order Flow Important in Trading? Order flow is important because it provides insights into the immediate direction of the market, revealing the underlying demand and supply dynamics, which can be key for making informed trading decisions. What Is the Difference Between Order Flow and Volume? While closely related, order flow technically refers to the detailed list of transactions (buy and sell), whereas volume measures the quantity of an asset traded over a period. Order flow gives insight into the specifics of market transactions, while volume indicates the level of activity. What Is the Difference Between Order Flow and Price Action Trading? Order flow trading focuses on the underlying transactions that drive market movements, whereas price action trading relies on analysing the price movements themselves. Price action traders study charts for patterns and trends without necessarily considering the specific buy and sell orders that cause those movements. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
2
"The Bodies Tell The Story.. The Wicks Do The Damage" - ICTIn this video I'm going to go through one of ICT's most famous sayings, which is "The bodies tell the story, and the wicks do the damage". If haven't taken the time to understand what he means, then you are seriously putting yourself at a disadvantage if you are using his concepts. This is one of the most crucial and useful pieces of the ICT puzzle. You often hear him say that the wicks are painting outside of the lines, which he sees as permissable when he is trading his PD Arrays. So without further ado, I'll try my best to provide some insight. For illustrative purposes I'll use his Market Maker Sell Model. Just to note that this is not a video teaching about his market maker models, so the focus will not be on that or his other concepts. If you don't understand a certain term or concept, please check out ICT's YouTube Channel or the countless other resources online. This video will be predominantly shedding some light on candle bodies and wicks. I urge you to go into your own charts and do your own study. This will truly be something eye opening if it is the first time you've actually decided to take notice. - R2F
Education
by Road_2_Funded
2
Bearish Movement expected. Dont be the Liquidity! pt4Look to all this Negative Delta. We are on Daily TF. BTC will fall and I strongly suggest that you protect your capital. When media is fully bullish, and everybody is talking about BTC going to the moon and the bullish effect of Halving.. thats the moment when MMakers will rekt almost everybody. Remember this wise phrase: buy with the rumor and sell with the new. Even if we see a bullish manipulation to the upside, everything is pointing to lower prices. Below actual price there is a lot of available Liquidity and it needs to be recapitalized. Bearish signs are present since days ago. This is my 4th Update trying to warn people. Be careful.
BYBIT:BTCUSD.PShort
by Zuhru
XAUUSD LONG AND SHORT Hi Friends I'm back with another analysis, To begin with gold is in a downtrend and there are multiple supply levels which the immediate one is a 5 min supply level around 2025-2026. then above it we have 2027 level which this morning market reacted to. Currently market is above the demand level of 19 and has reacted to it multiple times already. incase market continues downward other levels do exist for a long trade. In case we go up supply levels are also drawn. * As always add your intuition and logic into this analysis and trade cautiously *Be honorable
OANDA:XAUUSD
by AliHassanzadeh
Xauusd buy & sellHello Friends, I'm back with another gold analysis. Market is trapped between level 30 and 24 and is oscillating in 70 pips range. Above 30 we have level 37 then above it 47, in case market were to go down demand levels would be 16-12 and level 2008. *Note that level 37 was tested yesterday and it would be second time being tested if price gets there. Today's news will give energy to the market for next move so as always do your own assessment and analysis before taking any trades *Be honorable
OANDA:XAUUSD
by AliHassanzadeh
XAUUSD BUY AND SELL ScenarioHi guys, I'm back with another analysis on gold , Market reacted to my levels from previous analysis. Now new levels are available for both short and long trades. Market is moving up now and there are multiple supply levels available some fresh and some tested before. level 32 is our immediate supply level, following that we have level 43 then 47 and higher levels. To go long we also have level 24 which market reacted to, hours ago. Below it we have level 19 and 16-14 then 2008. #As always add your own logic and intuition into this. #Make sure you pay attention to the news which will be released in an hour. Be honorable
OANDA:XAUUSD
by AliHassanzadeh
XAUUSD BUY & SELLHi Friends, Another analysis on gold. As always I keep everything simple. So we have multiple levels of buy and sell. Our immediate sell level is 2047-2049 which price has reacted to. Below it we have level 27-29 as our demand level and also below it another one. in case market continues rallying up we have couple supply levels like area 61 and 73. So we have to wait for the NEW YORK session in order to see the direction of the market. *make sure to pay attention to the PPI news being published later today Be honorable
OANDA:XAUUSD
by AliHassanzadeh
4
RISK OFF FRIDAYThe King, Dollar Index, is in a Weekly BuySide SellSide Imbalance, BISI. Is this the end of a RISK OFF Spell for Risk Assets and a possible uptake for Dollar. 10 Year US Yields, US10Y, has led the way into its own Weekly BISI. Currency follows the Rates...so I would be highly cautions this RISK OFF FRIDAY Afterall, the Rates are not yet cut, the indication of possible rate cuts scheduled for next is not enough to push through the weekly SIBI, or is it? ...from Kong with LOVE...
EASYMARKETS:USXUSD
by KongSA