I myself always use the market profile a lot in my trading. And I’m really not the only one who really enjoys using this tool. In this blog I will briefly explain to you what the Market profile is exactly and how we use it. The market profile is created to determine the significant levels that prominent market players take into account in their trading. It is also known as horizontal volume. The great thing about this tool is that it can actually be combined with almost any trading strategy. Of course I use it in combination with Supply and Demand, which works very well for me. Thanks to the Market profile, I can decide whether my Supply and Demand Zones are well drawn. And also If a Supply or Demand Zone matches the POC (Point Of Control) market profile, the Supply or Demand Zone is often many times stronger.
Above we see a good example of the market profile and we also see how well this matches the Supply Zone. Often these are also the areas where we have to pay attention to a good opportunity for a good trade. We can also use Market profile very well to determine a possible Stop loss.
Definition / How to use market profile in forex.
Volume Profile is an advanced charting study that displays trading activity over a specified time period at specified price levels. The study (accounting for user defined parameters such as number of rows and time period) plots a histogram on the chart meant to reveal dominant and/or significant price levels based on volume. Essentially, Volume Profile takes the total volume traded at a specific price level during the specified time period and divides the total volume into either buy volume or sell volume and then makes that information easily visible to the trader.
My opinion about the use of market profile is therefore only positive. And I also use it very often to almost always in my trading. From experience I can say that it only improves my chances with the use of market profile. In my new Order Flow course I explain all this even better and of course much more. So I’ve piqued your interest, be free to join the order flow course. Please note that at least 6 months of experience is required with trading Supply and Demand.
Or want to know more about how to use market profile in forex?
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 ProfessionalForex Market Trader.
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.
Firstly the term delta was introduced in trading in the year 2002 together with the footprint charts. But especially at that time it was still very difficult as a trader to get the real time data, which was mainly devoted to a small selective group on the market. But fortunately, today it is a lot easier to use the real-time data that we mainly need to trade with Order Flow. And this information can help us as retail traders get a lot closer to the professional level.
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). So if delta is greater than 0 you have more buying than selling pressure. If delta is less than 0, you have more selling than buying pressure. So Delta is calculated through subtraction of the volume of contracts traded at the Bid price from the volume of contracts traded at the Ask price.
To calculate the delta we need the following variables:
The bid price
The ask prive
The most recent price at which the instrument was traded.
The volume of the most recent trade.
The time of its execution.
But remember that the delta is calculated by the difference of the volume of the market buys and the market sells. So the Delta calculation by market, or as they say aggressive, orders is explained by the fact that namely market orders move the price in the market.
As most of you already know, there are different types of Delta that you can use, although they all come down to the same thing. We can also use the Delta in various ways in our trading as extra confirmation.
But the true power delta is revealed when we use it to determine the market’s reaction to powerful buying or selling. So we want to see if the market has reacted as we would expect or not. I also explain all this in my Order Flow course.
Where can I find the Delta?
You can find Delta order flow on different platforms. So I’ll list a few for you here.
–Sierra Charts. Lightweight platform you can go in many directions with it and it is one of the cheaper platforms.
–Ninja Trader. Lots of free choice but even more choice under their paid platform.
–MT4/MT5 And for MT4/MT5 there are also several indicators, sometimes by external parties.
These are a few examples. And there are probably many more to be found.
Conclusion Delta order flow.
If I give my personal opinion about the Delta order flow, the Delta is perhaps one of the best indicators that you can use in Order flow trading. It can give you a good indication of where you are in the market and who is in control at the moment. The buyers or the sellers. It gives you a good insight into the buying and selling pressure and how the market reacts to it. So my advice is therefore to definitely use delta when trading with the footprint charts or trading with supply and demand just before the extra confirmation.
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 ProfessionalForex Market Trader.
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.
Order flow represents the amount of orders waiting to be executed at a given level.
Suppose that the price is going up very fast, the price is really in a rally, then we also know that at some point this will stop again.
The rally is there because at that point there are simply more people willing to buy than people willing to sell.
This causes an imbalance between the buyers and sellers.
And because there are more buyers at that time, the price shoots up.
But eventually the price will be driven to a place where at that moment there are more sellers than buyers and the price will be dropping again.
This simple scenario is what happens in the markets on the macro and micro levels.
This is the essence of what makes price move range or reverse.
That is in short what order flow is.
With order flow analysis it can help us predict with a good amount of certainty where orders imbalance awaits at a future price level.
This can ensure that we can take a trade with more precision and certainty.
Volume Data Forex.
Forex brokers offer an indicator known as volume.
In forex trading, volume is unable to deliver real order quantities.
Often we are dealing with tick volume and not the actual volume.
It can only display the number of taps, the number of trades broadcast at a specific broker.
So to see the real volume, we need the real data.
And we can see that on the futures.
For example, the 6E which stands for EUR/USD, take a look at the chart below.
On the chart we see the real real-time data.
Order flow forex
So we see the EUR/USD future chart above the 6E.
What can we do with order flow? / Order flow forex
Order Flow helps us to remove random trade decisions.
Traders who use technical indicators often base their trading decisions on these indicators.
For example the Moving average.
But honestly?
There’s no logic behind that.
Technical indicators simply fit past results to make the results look nice.
But Order flow will help to keep you out of the choppy markets.
Order flow helps us in our trading to make more accurate decisions.
It is a lot easier to make a profit if the market is trending very nicely in 1 direction.
But of course the market doesn’t always do that.
The market trends, stops, turns, continuous.
And most technical indicators go wrong there, especially with the current price.
When the behavior or direction of the market changes, you should be able to anticipate it as quickly as possible.
So that you can capitalize on the opportunities as they happen.
Order Flow can also show you how aggressive the other traders are.
Order flow shows you exactly where to get out of a trade when it is not going as planned.
You are not left to guess if a trade is working out or not.
You will know before you get in.
So if you are a beginner trader and to become a good professional forex trader.
Want to know more about Order flow 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 ProfessionalForex Market Trader.
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.
An order block is the accumulation of orders from financial institutions and central banks. Order blocks are actually special Supply and Demand zones that are formed when there is a block order. That is where the name order blocks comes from. It is formed by buying and selling of the banks and institutions. And it may be that you are already familiar with order flow trading and then you will certainly know the name order blocks. We know that banks use special orders to buy, sell and close their orders. When banks want to open a position with volume, they don’t just randomly open a position to upset the price and trigger their order at a worse price that may result in lowering their profit.
No what their doing is they try to split their positions into small and manageable blocks using order blocks.
How it works?
I see trading from an order block as a high probability trading setup. So if you use order blocks in your trading setup you can find really high-probability trade entries, and you can use them to reap additional profits alongside your core trading strategy. You can use the order blocks in different trading strategies. That is why it is very important to learn to recognize them.
Below I will share with you some images of the charts where we can find the order blocks. And I will also give a short explanation on how you can find the order blocks on the charts yourself.
Order blocks forex
Bearish Order Blocks.
In the image above we see 2 times a bearish order block. Here we are looking at the GBP/JPY chart at the 1h. You can clearly see here that the price has formed an order block. The price breaks out of the order block after coming back down and then breaking back down again. We can also see very well here that the price is making a new low or lower low. Such a structure is anticipated to render resistance to the price. Then we see that a new order block has been created that we can use again if the price possibly comes back in this block. Of course we also take all other rules into account before we can only take a trade from this block.
Order blocks forex
Above is the chart of US30 at the 1H. Here too we see a nice Bearish order block. If you look closely at the image you will understand exactly what I mean.
Order blocks forex
XAUUSD on the 1H chart. Here we actually see the exact same thing happening again.
Bullish Order Blocks.
We also have the Bullish Order Blocks, of course. These are, the exact opposite of the Bearish Order Blocks. The price breaks out of the order block after coming back up and then breaking back up again. We can also see very well here that the price is making a new high or higher high. Below we also see an example of it on EUR/USD on the 4H timeframe.
Order blocks forex
Are Order Blocks and Supply and Demand Zones the Same?
Opinions are divided on this. Because when I say that all Supply and Demand Zones are Order Blocks. But not every Order Block is a Supply and Demand zone? That is why we cannot use all order blocks when trading Supply and Demand. In the course you will also learn exactly what to look for in order to find the right blocks. I mean when we look for nice Supply and Demand Zones we look for good Order Blocks to create a zone.
So if you are a beginner trader and to become a good professional forex trader. Want to know more about Order blocks 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 ProfessionalForex Market Trader.
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.
This is a question I hear a lot around me.
And the answer to it is yes!
But let me be very clear that this is not easy.
It’s not as easy as some ads show you sometimes.
We all see those ads every day that promise you all kinds of things “Become a millionaire in a few months.” “Get Rich Quick!” “Anyone can now become a millionaire with my system!” Except that this does not apply to trading at all and I even find it misleading and fake.
Of course, this also applies to many other things.
So don’t fall for this!
Because of everything we see around us, the big beautiful houses the super cars the most expensive jewelry, many people also want to achieve this and are therefore more likely to fall for certain false ads.
I just told you that you can definitely become a millionaire by trading forex.
But then you ask yourself how?
Let me explain that in a really honest way.
Learning to trade forex correctly just takes time.
For some it takes a year and for others sometimes 5 years before you are really successful.
It also takes a lot of effort and hours behind the charts.
And what about a good risk management?
Because if you master the technique well, but not the rest, you will never become a millionaire trading forex.
Funds
And now we come to the next point. Funds!
Also how many funds you have to trade with will ultimately determine within what time you can become a millionaire by trading forex.
Because someone with an account of 100,000 will of course achieve this sooner than someone with an account of 5000.
Provided of course that the person of 100,000 masters good risk management.
But if you do not have a large piggy bank and do not immediately have that much money at your disposal, are there still options?
There are also possibilities for that.
Nowadays there are many companies that want to offer you a larger trading account if you can show that you can do it.
From the profits you make, you and the company share the profit.
With many companies you only have to pay an entry fee to get into the test phase.
The level of the entry fee is often determined on the basis of the amount linked to the account.
But beware, if you do not get through the test phase or if you have not adhered to the rules, you will in most cases lose your money.
But if it goes well and if you achieve the goals of the first test phases, you will be rewarded with a large trading account.
And you can certainly earn a lot of money with a minimal investment!
Conclusion / Can you be a millionaire trading forex?
Arriving now at my conclusion, my answer to this question is definitely yes!
Of course I also speak from my own experience, but I have to be honest to tell you that the road to it has not been easy.
I too lost a lot of money in the beginning and was often on the verge of giving up.
In the end I did not do this and I can now proudly say that trading has provided me with a very good income.
So I think it’s possible for you too?
Sure!
If you are willing to work hard, spend many hours behind the charts and do a lot of backtesting, you will definitely succeed!
Have a very good plan and very good risk management so that you don’t have to hurt yourself unnecessarily with blowing up your account.
I think this is step 1 on the road to becoming a Forex millionaire!
Or want to know more about Can you be a millionaire trading forex?
So if you are a beginner trader and to become a good professional forex trader.
Want to know more about when to enter a trade 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 ProfessionalForex Market Trader.
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.
Liquidity in the forex market is the ability for a currency pair to trade.
I mean Buy/Sell on Demand.
So when you trade Major currency pairs you are trading a market that is extremely liquid.
But not every currency pair is liquid.
Currency pairs actually have different levels of liquidity.
And this again depends on whether it is a Major pair or a Minor pair and then of course you also have the exotic pairs.
So Forex liquidity dries up as trader’s move from major pairs to minor pairs and finally to the exotic pairs.
Liquidity Pairs.
What are High Liquidity Pairs? / what is liquidity in forex?
Firstly high liquidity in forex refers to a currency pair that can be bought or sold in large quantities without major differences in the exchange rate.
So below is a list of the major pairs, which means pairs with a high liquidity.
EUR/USD (Is the world’s most heavily traded currency pair, representing more than 20% of all forex transactions.)
USD/JPY (Is a distant second place.)
GBP/USD
USD/CHF
EUR/GBP
AUD/USD
USD/CAD
NZD/USD
What are low liquidity pairs? / what is liquidity in forex?
Secondly Low liquidity pairs are pairs that cannot be bought or sold without major differences in its exchange rate price level.
Like exotic pairs for example AUD/NOK (Australian Dollar/Norwegian Krone).
Liquidity Levels.
What are Liquidity Levels? / what is liquidity in forex?
For large institutions and traders who have to fill large orders, finding high liquidity levels is very important.
So a market’s liquidity has a big impact on how volatile the market’s prices are.
When these major players enter the market, they naturally want their orders to be filled at the best price.
However, given the size of their positions, they need to find enough counter-forces to fill their orders, and here is the key, with the minimal amount of slippage.
For example imagine a big player coming in at a low liquidity area, the volatility it would create would have a negative impact on the average price it gets.
So low liquidity often makes the market more volatile and also causes the price to change drastically.
But where exactly do we find these levels?
The answer is actually very simple where Stoploss orders are hidden.
Maybe you already know the word Stop-Hunt? This actually has everything to do with it.
So the fact that large players have to enter the market in areas of liquidity as they aim to accumulate major positions.
These areas will always attract interest as that’s where pockets of liquidity exist.
As a result allowing them to get the best average price by reducing the risk of slippage.
Finally below is a clear video about how you can trade with High liquidity levels.
Or want to know more about what is liquidity in forex?
So if you are a beginner trader and to become a good professional forex trader.
Want to know more about what is liquidity 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 ProfessionalForex Market Trader.
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.
