Wednesday, July 22, 2015

What's Order Flow?

Order Flow is a tool to obtain the necessary and essential information on the volume of market trading in real time, specific volume, we will report how many purchase and sales contracts have in each tick market price, the difference between them and the time at each price level.

So we can see that levels are the most fought between Buy and Sell that possible support and resistance can be generated in that price range, who have taken control of the market at all times, as certain price levels remained as they are the maximum and minimum and if the price you intend to go to auction them again. It is also a very valid tool to not get out of a Trade winner ahead of time so you can take advantage of the maximum stroke possible before the price turned on without the uncertainty of whether it will be that return a possible correction or really a change of sentiment in the price. Being able to compare the difference in purchase contracts against the sale we can see whether the trend and market pressure (bullish or bearish) is weakening to the point of knowing with precision where he could turn the price based on statistical probabilities.

But the biggest advantage is that if we are wrong or the market makes a strange move against us, the distance to the stop loss will be so close that we will always have our favor risk / benefit factor. When we lose will be very controlled way (if we are disciplined with the system) and when we win will always be greater than the losses (if the market behaves in a normal way and if I ofcourse also are disciplined with the use of tools).

Well as the methodology and tools are somewhat complex in the beginning, FORMATEENFOREX designed and adapted a way to analyze markets classicism of graphics cards and conventional technical analysis.

These tools are based reading futures market but we also have thought about that and we have adapted to our daily market Forex Trading Spot (cash).

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