Do yourself a favor; learn Order Flow.

Arjo
27 Jul 202420:18

Summary

TLDRThis video script delves into the concept of 'order flow', a key strategy for trading profits, and its intimate connection with market structure. The speaker explains the significance of short-term highs and lows, fair value gaps (FVGs), and how they indicate price movement intentions. Emphasizing the importance of understanding time frames, the script guides viewers through identifying and utilizing order flow lags to predict market trends, highlighting the superiority of FVGs in revealing the market's true direction.

Takeaways

  • πŸ˜€ Orderflow is a critical concept for understanding market movements and has been a significant source of profit for the speaker and MMT members.
  • πŸ” The speaker is passionate about orderflow and fair value gaps, which are integral to their trading strategy and have led to a deep appreciation for these concepts.
  • πŸ“ˆ Market structure and orderflow are closely related, with the former providing a broader view and the latter offering more precise insights into current market dynamics.
  • 🎯 Swing points and fair value gaps are used as targets in trading, with the speaker emphasizing the importance of identifying these on different time frames.
  • πŸ“Š Short-term highs and lows are pivotal in understanding orderflow, as they can indicate the direction of price action and are connected to fair value gaps.
  • 🧩 Time frames are fractal, meaning that a short-term high on one time frame may be an intermediate high on another, and understanding this relationship is crucial for trading.
  • πŸ“‰ An orderflow lack is characterized by a swing point followed by a fair value gap, indicating a bearish or bullish lag depending on the context.
  • πŸ“ˆ Fair value gaps are superior indicators of market intent because they reveal the footprint of larger market orders and are precursors to orderflow lacks.
  • πŸ“ The speaker suggests that understanding orderflow lags on the daily time frame is fundamental before applying the concept to other time frames.
  • πŸ”‘ The direction of price movement is indicated by orderflow lags, with fair value gaps confirming the market's intention to continue in a particular direction.
  • πŸ“š The speaker encourages conducting case studies on orderflow lags, especially on the daily time frame, to better understand how they reveal the market's intent.

Q & A

  • What is the main concept discussed in the video script?

    -The main concept discussed in the video script is 'Order Flow', which is a trading strategy that the speaker claims has led to significant profits.

  • What is the relationship between Market Structure and Order Flow?

    -Market Structure and Order Flow are closely related. Market Structure provides a broader view of the market, while Order Flow offers a more detailed and accurate representation of current market conditions.

  • What are the key elements of an Order Flow Lack?

    -An Order Flow Lack consists of three key elements: a swing point, a fair value gap, and a fair value area. These elements indicate the intention of price movement.

  • Why are fair value gaps considered superior in the context of Order Flow?

    -Fair value gaps are considered superior because they reveal the intention of price movement and serve as the footprint of the bigger will in the market. Without a fair value gap, there is no Order Flow Lack or fair value area.

  • How do short-term highs and lows relate to intermediate term highs and lows?

    -Short-term highs and lows are essentially the same as intermediate term highs and lows but on different time frames. A short-term high on one time frame might be an intermediate term high on a lower time frame, and vice versa.

  • What is the significance of the daily time frame in understanding Order Flow?

    -The daily time frame is significant in understanding Order Flow because it provides a strong and clear indication of the market's direction. It is considered more important than lower time frames due to its higher impact on price movement.

  • How can the concept of fractals help in understanding Order Flow across different time frames?

    -The concept of fractals helps in understanding Order Flow by showing that the same patterns of highs and lows repeat across different time frames, just at different scales. This helps traders to recognize similar market behaviors regardless of the time frame they are analyzing.

  • What is the purpose of identifying short-term highs and lows in the context of the script?

    -Identifying short-term highs and lows helps traders to understand the potential retracement levels and continuation points in the market. These levels can act as resistance or support and are crucial for determining the direction of price movement.

  • How does the speaker use the concept of Order Flow in trading?

    -The speaker uses the concept of Order Flow to determine the market's intention and direction. By analyzing the presence of fair value gaps and the formation of Order Flow Lacks, the speaker can make informed trading decisions based on the market's underlying structure.

  • What is the importance of understanding the fractal nature of market structure and Order Flow?

    -Understanding the fractal nature of market structure and Order Flow is important because it allows traders to recognize patterns and behaviors across various time frames. This can lead to a more comprehensive and accurate analysis of market conditions, enhancing trading strategies.

Outlines

00:00

πŸ’‘ Introduction to Order Flow and Market Structure

The speaker introduces the concept of order flow, which is central to their trading strategy and has been highly profitable. They express a deep affection for fair value gaps and their role in trading. The video aims to cover market structure first, then delve into order flow, showing their close relationship. The speaker revisits the topics of fair value gaps and swing points, emphasizing their importance as targets on the daily time frame. The focus is on Euro JPY, with targets marked mainly to the left side of price action, hinting at the significance of order flow. The speaker also discusses the importance of short-term highs and lows and how they are distinguished from intermediate term counterparts, especially in relation to fair value gaps. The concept of price always moving towards a 'P' (presumably a price point or level) is introduced, indicating the need to understand the direction of price action.

05:01

πŸ“Š Deep Dive into Market Structure and Time Frames

This paragraph delves deeper into market structure, discussing the role of intermediate and short-term highs and lows in determining fair value areas. The speaker explains how these elements provide a broader view of market intentions and how they relate to order flow. The concept of time frames is highlighted as crucial, with the speaker emphasizing the importance of understanding how market structures appear differently across various time frames, such as the 4-hour and 1-hour charts. The paragraph also explains how short-term highs and lows can be seen as intermediate highs and lows on lower time frames, illustrating the fractal nature of market structure. The speaker guides viewers through the process of identifying these structures on charts and what they signify in terms of potential price retracements and continuations.

10:01

πŸ” Order Flow Analysis and Its Significance in Trading

The speaker passionately explains the intricacies of order flow, positioning it as a more accurate representation of current market activity compared to the broader view provided by market structure. They define an order flow lag as having a swing point followed by a fair value gap and a fair value area, which together indicate the market's intention. The importance of fair value gaps is underscored as they are seen as superior indicators of market direction. The speaker uses examples from different financial instruments to illustrate how order flow lags, marked by fair value gaps, can predict price movements with higher probability. The paragraph concludes with an encouragement to conduct case studies on order flow lags, particularly on the daily time frame, to understand their role in revealing the market's intentions.

15:03

πŸ“‰ Understanding Price Intention Through Order Flow Lags

The speaker continues to elaborate on how order flow lags, particularly those with fair value gaps, can reveal the true intention of price movement. They discuss the daily time frame's significance and how it influences price action, using Euro JPY as an example. The paragraph explains that the presence of an order flow lag with a fair value gap suggests a strong likelihood that the market will move in a particular direction, as seen in the case of USD/CAD and NASDAQ. The speaker emphasizes the importance of recognizing these patterns to predict future price movements effectively. They conclude by reiterating the importance of order flow in their trading methodology and encourage viewers to study order flow lags to gain a deeper understanding of market dynamics.

20:05

πŸš€ The Core of MMT Trading: Order Flow

In the final paragraph, the speaker summarizes the importance of order flow in the MMT (Market Manipulation Theory) trading approach. They stress that all their trading strategies are based on a deep understanding of order flow, highlighting its critical role in making informed trading decisions. The speaker thanks the audience for their attention and implies that grasping the concepts of order flow and its implications for market direction is foundational to successful trading.

Mindmap

Keywords

πŸ’‘Orderflow

Orderflow refers to the process of analyzing the market's trading interest and liquidity at different price levels. It is a central theme in the video, illustrating the concept as the presenter's 'baby' and 'everything,' indicating its importance in their trading strategy. The script discusses how orderflow is used to identify fair value gaps and understand market structure, with the presenter expressing a deep passion for the concept.

πŸ’‘Fair Value Gaps (FVG)

Fair Value Gaps are areas between significant price levels where there is a lack of trading activity, suggesting a potential imbalance in supply and demand. In the video, FVGs are described as a key indicator of market direction and are integral to understanding orderflow. The script emphasizes the importance of FVGs in identifying potential trading opportunities and market sentiment.

πŸ’‘Market Structure

Market Structure in the context of the video refers to the organization of price movements and the identification of significant price levels, such as highs and lows. It is closely related to orderflow, as understanding market structure helps in identifying potential areas of interest for trading. The script explains how market structure provides a broader view of the market's direction and is used in conjunction with orderflow analysis.

πŸ’‘Swing Points

Swing Points are significant turning points in the market that indicate a potential change in direction. The video script discusses how swing points are used to set targets for trades and are a crucial part of identifying fair value gaps and market structure. They are used to mark potential reversal areas and are a key element in the analysis of both short-term and intermediate-term price movements.

πŸ’‘Short-term Highs/Lows

Short-term Highs and Lows are temporary peaks and troughs in price action that do not have the same historical significance as intermediate-term highs and lows. The script explains that short-term highs and lows are important for understanding orderflow and market structure, especially in the context of fair value gaps. They are used to identify potential retracement levels and continuation patterns within the market.

πŸ’‘Intermediate-term Highs/Lows

Intermediate-term Highs and Lows are more significant price levels that have a greater impact on market direction over a longer period. The video script uses these terms to explain the broader market structure and how they influence the formation of fair value gaps and orderflow patterns. They are seen as more robust levels of support and resistance that can hold price movements until a significant market event occurs.

πŸ’‘Time Frames

Time Frames are the intervals used to analyze price data, such as daily, hourly, or minute-based charts. The script emphasizes the importance of understanding different time frames in trading, showing how patterns like short-term highs and lows can be interpreted differently depending on the time frame being analyzed. It illustrates the fractal nature of market patterns across various time frames.

πŸ’‘Retracement

Retracement refers to a temporary reversal in the price movement against the prevailing trend. In the video, retracements are discussed in the context of orderflow and fair value gaps, explaining how they can provide insights into the market's next move. The script mentions retracements as part of the process of reaching intermediate-term lows or highs and the subsequent potential for larger price movements.

πŸ’‘Fractal Understanding

A Fractal Understanding in the context of the video refers to the self-similar patterns that repeat across different time frames in the market. The script explains how the same market structures and patterns appear at various scales, from daily to minute charts. This concept is crucial for understanding how short-term highs and lows can be intermediate-term highs and lows on different time frames.

πŸ’‘Intention of Price

The 'Intention of Price' is a concept that describes the underlying direction that the market wants to move in, as indicated by various technical patterns and indicators. The video script uses this term to explain how orderflow, fair value gaps, and market structure can reveal the market's true intentions, helping traders to make informed decisions about potential trades and market movements.

Highlights

Introduction to the concept of orderflow as a key to understanding market movements and its importance in trading.

The relationship between market structure and order flow and how they are closely related in trading strategies.

Explanation of PD rates and fair value gaps, and their role in identifying targets in trading.

The significance of swing points and fair value areas in the daily time frame for setting trading targets.

The concept of short-term highs and lows and their distinction from intermediate term highs and lows.

How short-term highs and lows leave behind fair value gaps, indicating the direction of price movement.

The importance of understanding price action direction towards a P (presumably 'Price') and its role in trading decisions.

The significance of time frames in trading, especially the use of daily, 4-hour, and 1-hour time frames for identifying swing points and fair value gaps.

How intermediate term highs and lows provide a broader view of market structure and its implications for short-term trading decisions.

The fractal nature of market structure, where short-term highs on one time frame can be intermediate term highs on another.

The role of order flow in providing a more accurate representation of current market conditions compared to market structure.

Dissection of an order flow lag, which includes a swing point, a fair value gap, and a fair value area.

The importance of fair value gaps in confirming the existence of an order flow lag and its implications for market direction.

How order flow lags indicate the intention of price movement, which is crucial for understanding market trends.

The practical application of order flow analysis in trading, with examples from Euro JPY and other markets.

The significance of higher time frames in trading, where the daily time frame is stronger and more influential than lower time frames.

Encouragement for traders to conduct case studies on order flow lags to deepen their understanding of market dynamics.

Transcripts

play00:00

a concept that made me and the mmt

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members a lot of profit is orderflow

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orderflow is my baby it is my everything

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orderflow is what made me fall in love

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with fair value gaps and today I want to

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introduce you to orderflow and if you

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don't watch out you will also fall in

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love with fair value gaps all right

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perfect in the third video of the MMC

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series I want to go over first finish

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that market structure topic we talked

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about in the previous video then move on

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to order flow and you will see as well

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how closely Market structure and Order

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flow are actually related to each other

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in the first slide I want to go over

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what are the PD rates so revisiting the

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first video that we had we talked about

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fair value gaps fair value areas which

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we mainly talked about in the previous

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video and also swing points we talked

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about the daily time frame how we want

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to use the daily time frame for those

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fair value gaps and those swing points

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those are our targets so let again Mark

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out those targets for this video I want

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to go over Euro JPY and I want to Mark

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out the following targets so again you

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will notice that mainly my targets are

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to the left side of price action this

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has a reason and this has to do with

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order flow which we're going to touch on

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later on now focusing on how we deliver

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towards this swing low right there and

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also this swing low sitting right there

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on again the daily time frame now moving

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on to the next slide we need to discuss

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then Market structure because in the

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previous video we talked about

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intermediate term highs intermediate

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term lows which again like mentioned

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discussed in the previous video so those

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intermediate term highs intermediate

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term lows is not something we will dive

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into to in depth in this video we'll

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revisit them yes but we will move on to

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short-term highs and short-term lows

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right there and how they transfer over

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to orderflow so to understand that let's

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dive into those short-term highs and

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short-term lows a little bit deeper

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short-term highs and short-term lows

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this right here in the left side you

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will see a shortterm high a short-term

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High very much like an intermediate high

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is simply set a swing high so it all

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starts with understanding those swing

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points but the difference between the

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short-term high and that intermediate

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high is that this short-term high does

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not have those swing highs lower to the

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left of it and lower to the right of it

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and also a huge difference which is very

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important to understand is that that

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short-term High leaves behind a fair

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value Gap right there so a short-term

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High swing High followed by an

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fvg those are the short-term highs that

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we want to focus on then in a bearish or

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in a lower Trend short-term highs will

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be protected until we reach an

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intermediate term low now what that

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exactly means what that looks like is

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what we're going to go over in a little

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bit but before we do that we of course

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need to understand a short-term low as

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well well the exact same just inversed

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so a swing low right there followed by

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an fvg short-term low does not have to

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have those swing lows higher to the left

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of it and higher to the right of it so

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the short-term low swing low followed by

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an FG in a bullish in a higher Trend a

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short-term low will be protected until

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we reach an intermediate term high this

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All Leads back to the following

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understanding price is always moving

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towards a p it is our job to find out

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which pay is next this is all helping us

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into understanding the direction of

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price action now before we dive into the

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chart I want to go over one more slide

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right here the time frames again I need

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your full attention with these slides if

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I didn't already have that because this

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is an extremely important topic and can

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be extremely confusing if you do not pay

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attention so here swing points fair

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value gaps we marked them out like we

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did in the beginning on The Daily time

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frame again so those swing points they

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are our targets then we can use

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short-term highs and shortterm lows on

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the 4H hour and the 1H hour time frame

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right there very similar to what we did

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in the previous video with intermediate

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highs and intermedium lows also on the

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same exact time frames but there's a

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difference between those and that's what

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we're going to go over so let's dive

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into the chart so on The Daily time

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frame right here we are going to be

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focusing on this low and this low right

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there as our main targets going down one

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time frame into the 4-Hour time frame

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right here we will start to notice that

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again we have intermediate term lows and

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intermediate term highs I'm going to

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again Mark out those intermediate term

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highs and intermedium lows with those

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blue circles like we did in the previous

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episode so there we have intermedium

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high there we have intermediate term low

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right there these are the main

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intermediat term lows and intermediat

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term highs that we want to focus on now

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these intermedium highs intermedium lows

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they give us that fair value area like

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we saw in the previous episode this for

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example is this fair value area the

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overall intermedium highs intermedium

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lows they give us the bigger view the

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birds eye view of what Market structure

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wants to do with short-term highs

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short-term lows and then moving on to

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orderflow we are going to dive deeper

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into how far price can retrace and what

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we can expect in the next few candles so

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we are going to get more accurate and it

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starts with those intermediator highs

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and those intermediator lows because if

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we take the first intermedium High and

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the first intermedium low sitting right

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here then when we move from an

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intermedium high to an intermedium low

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we will see that shortterm highs will be

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created on the time frame below so if we

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go into the lower time frame and now we

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focus on the price action from this

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intermediate High towards this

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intermediate term low right there Then

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here on the 1 hour time frame we can see

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when this intermediate term High gets

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created we actually have a short-term

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high at that moment in time because we

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have this swing High followed by this

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fair value Gap right there this

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shortterm high right here follows

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through and holds what does that mean

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that means off of that short-term high

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right there we continue lower creating

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new bearish fair value gaps but if we

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dive into even a lower time frame and we

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focus on the next piece of price action

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sitting right here then we will see on

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the 15minute time frame from this 4H

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hour intermedium High towards this 4our

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intermedium low right there we again

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create those short-term highs so this

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right here is a short-term High followed

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by these fair value gaps right there we

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come back into this fair value Gap right

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here then afterwards we create a new

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swing high sitting right there that is

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again a new short-term High followed by

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this new fair value Gap right there then

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we retrace back into this fair value Gap

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again right here and we leave behind a

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new swing High creating a new shortterm

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high to continue lower then we have one

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last sting into this fair value Gap

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right there where we again create a new

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short-term High to eventually reach the

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target of the intermediate term low that

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we have towards the left right there so

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what do we see in this movement lower

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right there towards the intermediat low

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we see that short-term Highs are holding

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price so they do not get traded back

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above those short-term Highs are getting

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respected meaning that we do not trade

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above those short-term highs we retrace

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back into those fair value gaps to then

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continue lower off of it until we reach

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this intermediate term low right there

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because like we mentioned in the

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PowerPoint slide those short-term highs

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will hold until we reach an intermediate

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term low because right here this is

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where it gets messy right now we have

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some short-term highs holding some

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short-term lows holding it gets very

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chaotic and that is because we have

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reached a main target in the form of

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this intermediate term low right there

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and whenever we have reached that

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intermediate term low right there then

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we can expect a bigger retracement as

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well but before we look at those blue

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circles right there let's look at the

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shortterm High actually right here on

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the 15 minute these short-term highs

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that we have on the 15 minute if we go

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down time frames into the 5 minute for

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example right here or into the one

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minute right here then what do we notice

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that those 15minute short-term highs

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turn into what one minute intermediate

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term highs and these intermediate term

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highs on the one minute if we now again

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zoom out then on the 15-minute time

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frame those are shortterm highs and if

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we zoom out further then we go back to

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the 4-Hour time frame these intermediat

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term highs and intermediate term lows

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that we had on the 4H hour time frame

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are what on The Daily time frame a

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shortterm high and a short-term low

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right there now I'm going to tell you

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why that is important to understand if

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we move on to the next slide right here

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Market structure now leads to the

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understanding of order flow we

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understand those intermediate highs

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intermedi lows short-term lows

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short-term Highs but short-term highs is

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on another time frame an intermediate

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term High and a short-term low on

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another time frame is an intermediate

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term low so if we have a short-term high

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on the daily time frame that's going to

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be an intermediate High most likely on

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the 4-Hour time frame and the same can

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be said if we go down time frames even

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more so for example a short-term low on

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the 1 hour time frame could be an

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intermediate term low on the 15-minute

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time frame it is all fractal and we're

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working towards a fractal understanding

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of the market arguably one of the most

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important parts in trading is

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understanding how those time frames show

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the same exact thing just on different

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time frames and that is what we're

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working towards here because now this

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daily time frame for example has a

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short-term high right there this on the

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4-Hour time frame is an intermediate

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term high right there now why am I

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telling you this and why does it feel

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like I'm trying to confuse you well the

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thing that I'm trying to prepare you for

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is the following this is so we don't get

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lost in the lower time frames later on

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so when we learn how to navigate those

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different short-term highs intermedi

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term highs on different time frames then

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this in the beginning might be a little

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bit confusing but it will be a lot more

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confusing if we don't understand this

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when we dive into the lower time frames

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so if you understand that those

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short-term highs and intermediat term

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Highs are essentially the same

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intermediat term highs or short-term

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highs short-term highs or intermedi term

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highs then you understand this and

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that's perfect then we can move on now

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moving on we now dive into order flow

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because those short-term highs and

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short-term lows that we just talked

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about where swing High needs to be

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followed by a fair value Gap that is

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Market structure yes but if we now dive

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deeper into that and we can actually

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dissect it so again like I mentioned

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Market structure is the bird's eye view

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order flow is the more accurate

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representation of what is happening at

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this moment in time then that short-term

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High followed by a fair value Gap is an

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orderflow lack so what does that mean

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let's dissect that orderflow lack

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breaking down orderflow lack it has all

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three eray it has number one a swing

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point right there so at the top we see a

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swing point and that is what makes it a

play11:43

lack so when I refer to a lag a lag in

play11:46

price action is when we have a swing

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High followed by a f Gap or swing low

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followed by a f Gap then it would be a

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bullish lag this is a bearish orderflow

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lag and after that swing point

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we want also a fair value Gap right

play12:03

there so we see the order flow lag also

play12:05

has a fair value Gap but an order for La

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has one more PD and that is of course

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the fair value area because the

play12:13

retracement that we had up right there

play12:16

is what we talked about in the previous

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video that is that offering of the value

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to then continue lower leaving behind

play12:22

that fair value area now why is that a

play12:25

fair value area because didn't we just

play12:27

mention in the previous video that a

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fair value area is from an intermedium

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low towards an intermedium high and vice

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versa well what did we just talk about

play12:35

in the previous slide an intermedium

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high is the same as a short-term high

play12:39

intermedium low is the same as a

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short-term low so this is a fractal

play12:46

understanding of a fair value area now

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this is where it gets in my opinion even

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more interesting because I'm just very

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passionate about it right here Order

play12:56

flow then tells us the intention of

play12:58

price but let's work that back because

play13:02

we mentioned in the first video that

play13:04

fair value gaps are superior why because

play13:07

you don't have an orderflow lack if you

play13:09

don't have a fair value Gap you don't

play13:12

have a fair value area then if you don't

play13:15

have a fair value Gap so order flow

play13:18

tells you the intention of price yes but

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fair value gaps tell you the intention

play13:23

of price we see the intention of price

play13:25

is again orderflow but those fair value

play13:28

gaps they are superior for a reason they

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are the most important and it's

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beautiful because this is exactly how I

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got to understand fair value gaps how I

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fell in love with fair value gaps

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because then I understood hey it's all

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about fair value gaps so here no fair

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value Gap is No orderful Lack no fair

play13:47

value Gap is no fair value area here we

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see a lack where we only have that swing

play13:53

point at the high right there we don't

play13:55

have a fair value Gap meaning that we

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don't have that orderful lack and we all

play13:59

also don't have that fair value area so

play14:01

in order for it to be an oral La again

play14:03

we need a fair value Gap and in order

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for us to need a fair value area we need

play14:09

a fair value Gap as well and that is

play14:11

talking about those short-term highs and

play14:13

short-term lows now we want to start off

play14:16

with understanding the daily time frame

play14:19

because this in itself is a lot of

play14:22

information and it's quite Advanced if

play14:24

you can understand this you are doing an

play14:26

amazing job but we first want to

play14:29

understand the daily time frame before

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we apply it to any other time frame so

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looking at order flow through the length

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of the daily time frame so then coming

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back to Euro JPY right here where we

play14:40

left off these blue circles where on the

play14:43

4-Hour time frame those intermediate

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highs and intermediate term lows then on

play14:47

the 15minute time frame right there we

play14:49

understood that here these are

play14:51

short-term Highs but these are not only

play14:53

short-term highs these are now order

play14:55

flow lacks that we can continue lower

play14:58

off of these these order flow lags tell

play15:01

us the intention of price and what I

play15:03

mean with the intention of price is the

play15:05

intention is where price truly wants to

play15:08

go towards so if price wants to continue

play15:11

higher wants to be bullish it will be

play15:13

told by order flow lags if price wants

play15:15

to continue lower it will also be told

play15:18

by bearish order flow lacks so if we

play15:21

again zoom out to the Daily time frame

play15:23

because what do we then have on the

play15:25

daily time frame well what does it look

play15:27

like we have a perfect order flow lag

play15:31

where we have the swing high right there

play15:33

the swing Point number one perfect we

play15:36

have one more candle in the making right

play15:38

there and now we have a fair value Gap

play15:40

sitting right there and we also have the

play15:43

fair value area sitting right here so we

play15:47

have all three PD rays and that is

play15:49

simply because we have a fair value Gap

play15:52

going lower with that shortterm high so

play15:54

on The Daily time frame we can Now

play15:57

understand that if we want to continue

play15:59

lower right here and reach for this

play16:01

swing low and this swing low then we

play16:04

will not trade back Above This high

play16:07

right there because that is the high of

play16:09

the order flow lack this then tells us

play16:12

the intention of price right here where

play16:16

we sting into it into the F Val Gap and

play16:18

we can continue lower towards those

play16:20

targets so we're looking at those daily

play16:22

targets and those daily order flow lags

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and if we even dive into it a little bit

play16:28

deeper than here we have this fair value

play16:31

Gap right there what gets created at

play16:33

that daily fair value Gap a 4H hour

play16:36

intermediate term high right there what

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gets created right here if we go into

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the 1H hour time frame 1 hour shortterm

play16:45

highs right here and right here and

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which highs do not get taken out it is

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consistently the shortterm highs that

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are protected right there and we

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continue lower but what about a again

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this order flow lag for example right

play17:01

here that we have that we can continue

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lower off of what's important to

play17:05

understand that we previously right here

play17:07

towards the left we talked about this

play17:09

intermediator low getting taken right

play17:11

there so we can expect a bigger

play17:12

retracement but that bigger retracement

play17:15

happens because on the time frame above

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us there is a new orderflow lack so if

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we zoom out the reason why we create the

play17:22

retracement is because we are retracing

play17:24

back into the fair value gap of a daily

play17:28

order flow lag right there and this is

play17:31

what we're going to build on to because

play17:33

the higher the time frame the more

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important the time frame so the daily

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time frame right here is stronger than

play17:39

the 1 hour time frame and if we go up

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time frames more then the higher we go

play17:44

the stronger the time frame so here what

play17:46

can we safely assume that we are not

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going to take out this High That Swing

play17:52

high that we have right there before we

play17:56

might take out this low now this fair

play17:58

value Gap is not confirmed yet meaning

play17:59

the orderflow lack in itself is not

play18:01

confirmed just yet but if we create that

play18:04

fair value Gap right here then we can

play18:07

safely assume that we have a good

play18:09

understanding of the direction because

play18:11

we are most likely going to take out

play18:13

this low first before we trade back

play18:16

towards that high so to give you a few

play18:18

examples and to build towards the next

play18:20

video which is candle science then right

play18:23

here we see order flow on US Dollar

play18:26

Canadian Dollar on The Daily time frame

play18:28

again we have this daily Val gap which

play18:30

we try to continue lower off of we don't

play18:33

create a new order flow lag going lower

play18:37

then afterwards we do create a new

play18:39

bullish order flow lag right there and

play18:42

this bullish order flow lag is then what

play18:44

we can continue higher off of after that

play18:47

we create again a new bullish order la

play18:50

which will be created in about 2 hours

play18:53

that is what we again can continue high

play18:55

off of then towards these highs then

play18:58

right here on ndaq we see the following

play19:00

that we have this orderflow lag going

play19:03

higher right there every lag every

play19:05

orderflow lag which has a fair value Gap

play19:08

in it has a higher probability of

play19:10

holding that is why this works because

play19:13

those fair value gaps they tell you the

play19:14

intention they are the footprint of the

play19:18

bigger will in the market they are going

play19:20

to tell you it's going to continue

play19:22

higher and that is told through those

play19:24

fair value gaps they can't hide the

play19:26

orders which is why it's called order

play19:29

flow and you see every low of the lag

play19:32

that has a fair value Gap in it right

play19:34

there is not getting taken out until we

play19:39

reach this orderflow lag right there and

play19:42

that might be an indication that

play19:44

orderflow is then again switching with

play19:47

this bearish order flow lag right there

play19:50

so again for your own sake start doing

play19:54

case studies and you will get to the

play19:55

same conclusion what I'm telling you

play19:58

right here the following case study

play20:00

study orderflow lags on The Daily time

play20:02

frame and see how they tell you the

play20:04

intention of price see how they tell you

play20:06

the direction that price wants to move

play20:09

in everything I do in the mmt is based

play20:12

off of order flow so it's an extremely

play20:14

important concept to understand all

play20:16

right perfect thank you

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