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An introduction to order flow trading


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An-Introduction-to-Order-Flow-Trading-1.

 

An Introduction to Order Flow Trading
Order Flow trading has been a profitable mode of trading. It offers professional and retail traders with information based benefits as it provides the complex step-by-step analysis of Order Flow in the form of intuitive charts that can easily be understood. People have been confused about what Order Flow Trading(OFT) is exactly.
OFT simply focuses on trying to predict the prices of the stocks through pending orders of other traders. In proper anticipation of prices, you need to make sure that the traders whom you are considering have to have large orders. They must be active market participants who have pending orders.
Frightening facts about Order Flow Trading
Trade gurus advise traders to trade what they see and forbid them from trading what they think. The market is not supposed to move according to your thoughts and it should not. Picking levels can be a dangerous way to handle your trading which has been prohibited by professional traders, but then order flow trading cannot be done without picking levels. This is the reason why OFT has been frightening for many traders.
Traders who had been mentally picking up levels and  simultaneously watching the price charts discovered that the levels were all  blown away. However, things can be different by using tight stop losses, and more importantly if you consider the picking levels carefully.
The Methods of Functioning of Order Flow Trading
Picking up levels is really a tricky issue. OFT requires proper analysis power which is missed by most of the traders. With the aid of proper training, technology and proper support , you can master the art of picking levels to carry on with OFT. There are methods of Order Flow Trading:
1. Identifying the apparent resistance levels along with the likely support to be confirmed by the price action. Once the price arrives the expected level is the trading method preached by the knowledgeable traders. This is one of the methods of order flow trading since the method depends on the expectation that there are lots of orders on the various levels.

 

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