Module 3: Order Flow, Price Action Story & Reading/Using Trends

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LESSON: Reading the Price Action Order Flow

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[op_liveeditor_element data-style=””][text_block style=”style_1.png” align=”left” font_size=”16″ font_font=”Montserrat” font_color=”%237e7e7e”]Order flow trading and price action trading are very similar. Many different strategies and tactics can be used to form strategies and an edge and this is where confusion can often creep in.

Order flow is buying and selling, and price action is price on a chart or that order flow being represented on a chart.

Often when traders here the words price action trading or price action they think of making pin bars or something similar, but as you now know; price action is simply the trader and market behavior being printed on the charts.

That is the live order flow being printed in price action and systems, strategies and rule sets from there can be created to form an edge of the market.

Using Smaller Time Frames

When trading intraday setups we trade using the 4hr, 8hr and the 1hr charts and smaller when you become profitable, and/or choose you want to.

When trading intraday we must realise some periods are better than others, the Forex market is more prone to moving at certain times.

This is all to do with what session the Forex market is in, or what part of the world is awake and trading.

As Forex Traders, we need volatility to make profit. In other words; we need the market to move up and down so if the market is doing nothing that is not great for us!

Certain times are more volatile than others and when putting on intraday trades, it makes sense to target these times, to enter the market, over the quieter times when the market is not moving much.

The Asian Forex session which is made up mainly of Japan, Australia, Singapore, China tends to not move very much compared to when the giants of the Forex world are open such as the US and the UK.

You will find the market normally moves the most when you have 2 regions trading at the same time.

For example; New York and London trading sessions overlap for 4 hours.

When working out how to play intraday trades, always take this fact into account.

Check what time your local time is compared to the big players and try to trade when market volume is high.[/text_block][/op_liveeditor_element]