What is the Order Flow?

OF (Order Flow) - structural movement during which price grab all liquidity, rebalance inefficiency and deliver price to main target.

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How to find?

Look for movements where price always make manipulations and rebalance fvg with strong reaction afterwards. For the start of order flow we need at least two manipulations, only after that we can say that order flow was formed.

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What it tell us?

The price, continuing the order flow and sweeping away all remaining liquidity, indicates that the current price movement is strong and that it's best to trade in the direction of the current trend without thinking about a reversal.

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Important to know:

• Order Flow is formed to achieve a specific goal; this tool always has a clear point of invalidation.
• It doesn't appear randomly and cannot simply end without reason.
• Keep this in mind when the price, within the order flow, takes out one of the high-liquidity zones. It's possible that this very zone was the target of the given Order Flow.

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How to invalidate?

After price reach possible target and make reaction which break your previous manipulation afterwards, that will be your point of invalidation of order flow.

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How we can use it?

Actually there are two ways how to use order flow.

Firstly and more common way is to use it for determine the context:

On this example we see that price move in long order flow, price works a lot with liquidity, so based on this we have very strong long context. With long context we know in which direction we will prioritize our positions.

Other way how we can use order flow is to use it like entry model for position:

There we see that on the start of asian session price grab BSL from accumulation, after that there was strong short move, price make another manipulation with rebalance of 1h fvg and make confirmation.

So our order flow is formed, we put our limit order on the start of BTS zone and put our stop-loss above last manipulation.

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Additional examples:

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