Saturday, 17 October 2015

Order flow Trading and liquidity is the foundation of every market

Order flow Trading and liquidity is the foundation of every market :

Order Flow Trading is NOT technical analysis or fundamental analysis, although both of those certainly do play a part in order flow analysis.  Why isn’t order flow trading technical or fundamental analysis?  Because technical and fundamental analysis DO NOT always move the market.,because they do not always generate the necessary order flow to move the market.  Sometimes they can move the market, and other times they cannot.  Technical and fundamental analysis are NOT the foundation of every market.  Order flow and liquidity is the foundation of every market.

Many people have experienced losing traders using both technical and fundamental analysis on various occasions.  Why do those losses occur?  They occur because during that particular trade your technical or fundamental (or both) analysis did not generate sufficient order flow to move price in the direction of your trade.  Perhaps you placed a trade with a chart pattern and it failed.  Or perhaps you placed a trade using fundamental analysis, but your stop loss was triggered before your fundamental analysis “kicked in” to move the market in your favor.

Order Flow trading seeks to correct the deficiencies in both technical and fundamental analysis – in order to come up with high probability trading based on the very foundations of every market – order flow and liquidity.  It is the very best, and most profitable way to trade.