Order flow trading strategy / Can it bring more profits?

Order flow trading strategy / Can it bring more profits?

Order flow trading strategy

If you have been trading for a while, you have certainly heard of trading with Orderflow.
I am also involved in this and have recently also made an extensive course about this to teach you everything about the order flow tools and how you can use them in your trading.

What is Order Flow?

Briefly and simply explained, Orderflow is the amount of orders waiting to be executed at a certain price level.
Let me give you an example of exactly what I mean.
For example, if the price goes up in a very strong movement, we know that eventually that will stop and the price will come down again.
This strong upward movement is of course due to the fact that there are currently more buyers willing to buy than sellers willing to sell.
This in turn creates an imbalance between buyers and sellers.
Which we can clearly see on the charts.
This simple example is what we see on the charts every day.
On different levels.

It’s as straightforward as it is seen on the charts after the events.
But what if you can see these movements coming in advance? That will help you a lot, won’t it?
That is where the order flow tools can help you. If you use it correctly.
So it can help you take trades with more precision and confidence.

Which Orderflow tools can you use? / Order flow trading strategy

There are several tools that you can use with trading order flow.
In this blog I will discuss a few with you and then I will mainly talk about the most commonly used tools.
I do want to make it clear that in addition to the order flow tools, you also need to have a good understanding of the market.

Order flow trading strategy

Footprint.

Above we see a footprint chart which is widely used in order flow trading.
Footprint charts are a type of candlestick chart that provides additional information, such as trade volume and order flow, in addition to price. It is multi-dimensional in nature, and can provide an investor with more information for analysis, beyond just the security’s price. (Source:https://www.investopedia.com/)

Order flow trading strategy


Delta

Above we see the Delta.
The delta is also a commonly used order flow tool.
Delta order flow is the difference between the market buys and market sells at each price (Footprint Delta) in each candle/bar (Bar Delta) or for a period of time (Cumulative Delta).

Order flow trading strategy

Volume Profile / Order flow trading strategy.

And the volume profile is also a very important tool for trading order flow.
Especially to find the most accurate supply and demand levels.

I have now given you a brief explanation about trading with orderflow.
Of course I want to tell you a lot more about it, but that is all too much to explain in this blog.
In the order flow course I teach you step by step how to use the order flow tools in the right way.
And how you can best combine this with trading Supply and Demand.

And to answer the last question, can Orderflow trading generate more profits?
Yes, it can ensure that you can take even better entries and also be out of a trade in time.

————————————————————————————————————————————————————————————–Do you want to become Success Supply and Demand Trader or want to know more about most volatile Forex pairs?
If you are a beginner trader and to become a good professional Forex trader. Want to know more about Forex liquidity strategy? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demand join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.
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Forex liquidity strategy / What is Liquidity do you know?

Forex liquidity strategy / What is Liquidity do you know?

Forex liquidity strategy.

You probably came to this blog because you wanted to know more about forex and liquidity.
Then you have come to the right place because in this blog I will try to explain as much as possible about this subject.
Let’s start with the fact that liquidity is not the same as volatility.
I often hear that traders sometimes make this mistake.
A liquid currency is an asset that can be exchanged very quickly for another type of asset.
In a liquid market we will often find many buyers and sellers and we will also see that the spread is very small on these pairs.
But as soon as some important news is published, buyers or sellers disappear from the market, and the currency changes from liquid to volatile.

Using liquidity and volatility in your strategy.

The liquidity of one currency measures the possibility of exchanging rapidly one currency unit for another.
And the faster this can be done, the more liquid a currency unit is.

Let’s just say that currencies that are more “exchangeable” are often more liquid.
The lower the country’s share of the global economic space, the greater the “regulation” of the domestic market, and the manual control of the economy, the lower the liquidity of the currency.
Let me give you a good example of exactly what I mean.
Suppose you have EUROS then you will probably quickly find someone who is willing to exchange with you for, for example, US Dollars.
And that’s because both these currencies are widely used.
So we can also say that the EURO and the US Dollar are very liquid pairs.

Now let’s get to the MXN Peso.
Because suppose you want to exchange this currency, you probably won’t succeed so quickly.
You will probably only be able to exchange these for a very low price.
And this is what we call low liquidity.

I think you now understand a bit what liquidity exactly is and what it means.
And don’t forget High liquidity does not mean high volatility.
A high-liquidity market is characterized by smooth movement, while in a low-liquidity market the shares of large individual players can bring chaos to the movement. 

Forex liquidity strategy
Forex liquidity strategy


Liquidity on Forex.

There are several factors that liquidity in forex pairs depends on.
I will name a few for you below.

Supply and Demand.
The fewer participants currently participating in the market, the less liquidity there is to find.
Large trading volumes provide the currency with a constant supply and demand.

Session.
Also, the trading session can play a big role in the liquidity of the market.
For example, USD Pairs show the most liquidity when New York is open.
And the Yen again when the Asian is open.

News and holidays.
The news or, for example, certain important holidays in certain countries can also do a lot to the liquidity of a forex pair.
To give an example during certain holidays we see very little volume back on the market because many banks and institutions are closed.

Summery.

I think you know most of it by now and I have also told the most important in this blog.

You can therefore very well include liquidity in your trading strategy.
Actually, this is just very clever.
I mean you don’t want to end up in a market where there is no movement at all or almost no movement?
We prefer good liquidity to trade.
And it is therefore really advisable to pay attention to liquidity while trading.

Do you want to become Success Supply and Demand Trader or want to know more about Forex liquidity strategy?

If you are a beginner trader and to become a good professional forex trader. Want to know more about Forex liquidity strategy? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demand join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.
JOIN HERE TFS COMMUNITY======================
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TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.

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Tax on Forex trading / Is forex trading tax free?

Tax on Forex trading / Is forex trading tax free?

It is actually a question that I hear very often, also within my community.
What about taxes?
Do I pay tax on what I earn trading Forex?
The answer to this question is quite difficult!
This is because this is very different in every country.
Everywhere the regulations are different on this subject.
I will try in this blog to explain as much as possible about what I know about paying the taxes on your forex earnings in different countries.

Here is the maximum capital gains tax rate for individuals in some countries:
-United States 37%
-Sweden 30%
-The Netherlands 31%
-Germany 25%
-Spain 23%
-United Kingdom 20%
-China 20%
-Greece 15%
-Russia 13%
-Switzerland 0%

Tax on Forex trading

Tax on Forex trading

Here we see a number of percentages of a number of countries.
That you also have to pay exactly those percentages on your earnings is not entirely true in all cases.
For example, in the Netherlands where I come from, there is also a rule that the tax rate is more favorable if trading forex is not your main income.
I mean if you have a business or a job next to trading.
And In many countries the effective tax rate on those types of earnings can be much lower, depending on the total annual income of an individual, as well as on other circumstances.
It is therefore best to find this out with a financial advisor in your country.
But for a Forex trader there are also countries which is a true paradise.
I mean where you don’t pay taxes.
Might be worth considering moving?

Where is the tax paradise for the forex trader?

For example, you could move to the Bahamas.
Because if you’re a resident of the Bahamas, you don’t pay tax on your income and it doesn’t matter where your income comes from.
Or you can go to Bermuda. No corporate income tax is imposed in Bermuda, resulting in less compliance burden for corporations. And whether you are a resident or not you are exempt from personal income tax and capital gains tax in Bermuda.
And if you don’t want that either, you can also opt for the Cayman Island.
Where also no tax is charged for the residents.
Switzerland can also be beneficial for you if you are seen as a private investor.
Because in that case you do not pay any tax on your income from trading.
For example, there are still some countries where you can benefit from tax benefits as a trader. It’s just a fact that you pay a lot more in some countries than in others.

Do you want to become Success Supply and Demand Trader or want to know Tax on Forex trading?

If you are a beginner trader and to become a good professional forex trader. Want to know more about Tax on Forex trading? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY======================
Results – Instagram
====================== 

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Looking for a Trusted Regulated Broker?

TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.

Join IC Market



Forex time frames / What are the best timeframes?

Forex time frames / What are the best timeframes?

Utilizing different forex time frames, for both the novice and advanced forex traders, is a very important concept.
Both the higher and the lower timeframes are important.
We often find the momentum on the higher timeframes, and we use the lower timeframes for entries.
As mentioned, the higher timeframe gives a picture of the overall trend of that specific day and or week.
But also the lower Forex time frames on the other hand are also very important to have the right risk reward and form of entries within that specific trading day.

The main Forex time frames.

Forex timeframes are often classified as long medium and short term timeframes.
So these three timeframes are crucial to understand, the higher timeframes such as the weekly daily 4h to identify the overal trend, and the lower forex time frames to identify potential within this price range trade setup.

See below a good example of a higher timeframe 4h supply zone & a lower timeframe entry m30.

Forex time frames

Forex time frames



Use a timeframe that matches your strategy!

Are you a swing trader?
Then you will use the higher timeframes more often and you will switch between a weekly down to a 4h base for entries.

If you are a day trader or scalper?
You will often use the lower timeframes, of course you respect the higher timeframe momentum and trends, but all your focus is on short moves that is what a scalper / day trader does.

You can think of the hour m30 m15 and some traders even use the m5 to m1 for their perfect entry timeframe.


What Forex timeframe should be traded?

As mentioned above in the previous topic, it is important to understand what kind of trader you are.
Are you a Swing trader? Or maby an intra day trader?
A day trader or maby a scalper?

Of course you can best answer this question for yourself and you can choose in which timeframes you will use.

I myself mainly scalp day trade and use a combination of a number of important timeframes.
Like the weekly daily 4h for everywhere direction or that specific day and or week, in terms of highs lows we see that the big institutions are really anticipating this and this the bias for that week or day.

And the lower timeframe within these highs lows of higher timeframe applicable to lower timeframes supply & demand zones.

You can see below a nice example from a higher timeframe low structure change in buyers direction into a few great supply zones on poundyen gbpjy.

Forex time frames


Forex time frames

Finally click here to see my blog about how to trade gbpjpy.

Do you want to become Success Supply and Demand Trader?
Or want to know more about Forex time frames?

So if you are a beginner trader and to become a good professional forex trader.
Want to know more about how to use market profile in forex?
The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones.
Which are already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demand.
So join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations.
Which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY======================
Results – Instagram
====================== 

Forex Trading

Looking for a Trusted Regulated Broker?

TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker.
They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.

Join IC Market

Forex time frames

Is forex trading halal?

Is forex trading halal?

I often get the question whether trading Forex is haram or halal.
Opinions are divided on this one person thinks not and the other does.
We know, of course, that gambling is prohibited in Islam.
But is Forex trading comparable or the same as gambling?
Whether it is gambling or not depends of course on the person.
If you are going to throw yourself into the forex market without knowledge and experience, you will of course “gamble” because you have no idea what you are doing.
So is that Haram? Yes, because that’s just gambling.
But are you very serious and have you already learned a lot about different strategies and do you know where you stand in the market?
Then we can see this more as a “company” because you also treat it as a company and in this case you are not gambling and trading forex is in most cases Halal.

What does Islam say about Forex Trading?

Having reduced the issue to one of trading spot Forex and assuming there is no interest element deemed to be involved.
Actually it is allowed only as long as it is “Hand to Hand”.
So the Prophet Mohammed (peace be upon him) had in mind exchanges of different types of commodities that would be made between two parties, recognizing that this was a natural and just aspect of commerce.
The question here lies in what is considered to be “hand to hand”.

For this answer we have to go back in time a bit.
Because in the past we didn’t have computers or telephones, so back then we only did hand-to-hand deals.
Face to face so to speak.
It was the way and accepted to make a deal between two parties.
Now in this day and age things are often very different and we are used to closing deals via the internet or perhaps the telephone for a long time, it is no longer just face to face.
Now let’s go back to forex trading because there is another discussion about that.
So this would qualify under such a definition of two different parties, which would be permissible according to Islamic law. 

Islam forex brokers.

Nowadays there are also Islamic forex accounts that you can open with different brokers. IC Markets is one of them, for example.
But what is the difference with a normal forex account?
The big difference is that you don’t pay a Swap.
This way you earn and pay no interest on your trades.
A swap free trading account is a Forex trading account that is allowed by Islamic Shariah law.
In Sharia law it is not allowed to have any interest applied for an overnight position. This is important for Muslim traders because Sharia law forbids Muslims from charging and paying interest on a loan.
Fortunately, swap free accounts are considered acceptable due to the fact that there is no interest applied, and commerce and trading has always been an activity that has been encouraged by Islam
So in the case of the swap-free account, the broker charges a fixed commission against the trader’s account balance instead of taking a portion of the rollover interest swap.

Conclusion

To return to the question of whether forex trading is gambling? The answer is that it is up to the trader.
If the trader uses a good analysis which has proved profitable in the past it cannot be called gambling but at most risky.
Is online forex trading haram? If the riba (interest) element is removed, a convincing case can be made that online Forex trading is halal and not haram, especially if leverage is not used.
Many brokers also offer Islamic accounts which are okay to use.

Ultimately, the choice is yours and only you know whether you consider Forex trading a business or gambling!
But at least as a Muslim you can trade forex in a halal way.

—————————————————————————————————————————————
Do you want to become Success Supply and Demand Trader?
Or want to know more about Delta order flow?

So if you are a beginner trader and to become a good professional forex trader.
Want to know more about Delta order flow?
The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones.
Which are already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demand.
So join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations.
Which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY======================
Results – Instagram
====================== 

Forex Trading

Looking for a Trusted Regulated Broker?

TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker.
They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.

Join IC Market



Order flow footprint / How to use?

Order flow footprint / How to use?

Order flow footprint

What is Order flow footprint?

The Order flow footprint charts are currently becoming increasingly popular with traders.
With the footprint chart you can look into the candle.
Normally we see a candle, but we do not know what exactly happened there, so with a footprint charts you have the exact numbers in the candle.
The original footprint charts were developed by Market Delta in 2003.
Unfortunately they are no longer active after a bankruptcy in 2020, but luckily we can still find enough about trading the footprint charts everywhere.
You will find it under many different names such as Numbered bars, Bid and Ask, Cluster and so on.
The name may therefore differ, but the concept remains the same.

But what exactly does the Order flow footprint chart show us?

The footprint charts show us the volume traded at that price level.
Compared to other indicators that traders use, the footprint chart is based on real-time information.
That is why we can find strong information on which levels buyers and sellers were interested.
Where absorption took place and where exactly the most volume took place.

Why trade with footprint?

I think that trading with the footprint charts can be very good for an extra confirmation in addition to your trading strategy.
And I also think that you should not start with the Order flow footprint charts if you do not have enough experience trading Supply and Demand or any strategy.
This can cause a lot of confusion otherwise.
As I already mentioned, the footprint charts offer an inside look into the market and show where participants are trapped or anticipate breakouts.
So we can get a lot more information with this, especially with regard to possible entries and when you can best exit a trade.
It can also help to make your Stop loss even tighter so that your win rate becomes much better.
How exactly this all works and how you can read and see this is too much to explain here now, but I explain all that in my course.

Order flow footprint

What types of footprint are there?

  • Bid/Ask footprint.
    I think this is one of the most used Bid/Ask Footprint displays the number of contracts traded on the bid price and the number of contracts traded on the asking price in real time for any periodicity you decide to use. In the example above you see a footprint chart with the Bid/Ask. (Order flow footprint)
  • Delta footprint.
    To be able to use this correctly, you already need some knowledge about delta.
    You see only one number because Delta represents the difference between finalized executions at the bid and the offer.
  • Volume footprint.
    This does not show any positive or negative volume but simply shows how much total was traded at that level.
    Whether it was Bid or Ask.
    Volume Footprint is useful because it shows where there was and interest from both buyers and sellers.
  • Volume profile footprint.
    The Volume profile footprint is actually not much different, only it shows per candle at which level the most volume was.

delta footprint

delta footprint

Order flow footprint

volume footprint

Order flow footprint

bid x ask profile

Order flow footprint

volume profile footprint

These are some of the most used.
There are a few more that you can use, but I won’t explain them to you right now in this blog.

Conclusion about Order flow footprint.

Since I got to know the Order flow trading and the footprint charts.
I don’t really want anything else.
It just gives me more insight into the specific areas and what exactly is happening there.
It helps me to take even tighter and more profitable entries.
But I can also better determine where I should take my profits and where I should place my Stop loss.
Especially if you are a more experienced trader, I will definitely recommend that you delve into this a bit more.
It can certainly help you take your trading to an even higher level!

—————————————————————————————————————————————
Do you want to become Success Supply and Demand Trader?
Or want to know more about Order flow footprint?

So if you are a beginner trader and to become a good professional forex trader.
Want to know more about Order flow footprint?
The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones.
Which are already traded and tested by thousands of TFS members and performs daily trades.

To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demand.
So join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations.
Which boosts your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY

======================
Results – Instagram
====================== 
Forex Trading

Looking for a Trusted Regulated Broker?

TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker.
They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.

Join IC Market

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