SO here is a short explanation of order flow.
First you need to know only thing that makes the market move is order flow , you and me plus banks and commercial companies and hedge funds…
if you still think that market moves by fundamental or technical analysis you are totally wrong.
if there is no orders come to the market market wont move.
so what i do is i use pegging to show me where the market will likely to go, you can do your own research about pegging.
so when i found the number i will take all my trades in that direction.
then i look for big orders anything more than 500 mill on buy or sell side and when i find it and order stays in the market for more than 60 sec i take the opposite side of that order.
i see an order of on euu/usd and i see a 550 mil on ask so now if the order still is in for another 60 sec i will sell at market with a 5 pip stop. i use these targets , 5,10,15,50,
when i hit my first target i take 25% off the table and move to break even.
you may ask why would i go short when 550 mil is on buy side.and why would i wait 60 sec to place a trade.
Well first of all there could be lots of fake orders in the market, remember for every buyer there should be a seller and for ever seller there should be a buyer. so now what happens sometimes that a bank or company place an order in the market you dont know if they are just getting in the market or just they taking some profits off the table.
so usually if order stays in the market for more than 60 sec they getting in on a new trade and some one needs to fill their order so by doing this market will move down around 5 to 10 pips before going up.
Hope i explained abit about this.
i try to make a decent movie shortly and explain in more details since its hard for me to type and explain.
Ask any Q and i will do my best to answer.