Rolf Guest PostIndicatorsTools Leave a comment 3, Views. The following article is a guestpost by JB Marwood. JB Marwood is an experienced trader with a passion for financial analysis and trading systems. Check out his blog at http: Yet, despite this, millions of forex traders approach the market in exactly the same way. They all watch price action or use technical indicators; moving averages, MACD, RSI, trend lines, pivot points, support and resistance lines. By following these technical indicators and patterns, traders hope to find a trend and predict where the market will go next. But the problem with this approach is that it involves only one component of what book moves the market. It ignores fundamentals, ignores the news, ignores market sentiment and ignores any other market dynamic. As a trader myself, I realize that technical indicators are useful. Admittedly, it is not easy to see inside of the market but there are two tools developed by OANDA that I like to keep an eye on, which might help you to make better trading decisions as well. The first tool I like to look at is the forex forex positions ratios which is a summary of all open positions held by OANDA clients. This data shows the percentage of traders who are long a currency pair and the percentage who are short. What you will find when looking at this data is that there is normally a fairly healthy balance between longs and shorts. However, when there has been a very strong move in one direction, the open position ratio can become extremely one-sided. This is not a short-term thing. Trades often need to be held for several days in order to give the ratios time to re-balance and for the market to experience a reversal. But this was simply because the Swiss National Bank had pegged the currency to the euro and everyone knew it. So going against the market in this situation was not effective. Book second tool to look at is the OANDA Order Book and this has to be one of my favourite trading tools for the forex market. Again, this is a really useful tool for looking inside the dynamics of the market, instead of just looking at price action alone. Together with the historical order book these charts show collections of buy and sell orders in the market. So these areas are likely to offer really strong support and resistance levels to take note of. On the left shows all the open orders and you can see that there was a large cluster of blue, open sell orders right underneath the 0. A lot of these orders will have been stops, and some will have been break-out orders. So we know from looking at the order book that this 0. If the open stays above this level then we are probably going to stay higher and trade upwards. But once the book touches this level, we are going to see a lot of sell orders come in and overpower the buys. That could easily lead to a strong downward move. So the following graphic shows the order book and the price chart, around 22 hours later. The two tools described here are useful for picking open and finding strong support and resistance levels in the market. They require some skill to identify and they should not be used on their own. But every now open then, these tools show great insight and book help traders find an edge in their forex trading. Tradeciety does not have any affiliating relationship with Oanda. Your email address will not be published. Forex Resources Tradeciety Academy About us Contact Webmasters. Tradeciety — Trading tips, technical analysis, free trading tools Forex Trading Blog And Trading Academy. Trading Blog Technical Analysis Market Analysis Indicators Price Action Psychology Beginners Risk Management Statistics Tips Premium Courses Member Login My Courses Member Forum Become A Member. Time Your Forex Trades To Perfection With Open Orders Open Positions Rolf Order PostIndicatorsTools Leave a comment 3, Views. Forex in this article Open Position Ratios How to forex it Not all markets are equal OANDA Order Book Round-up. Forex Trading Order Forex price action course Private forum Weekly setups Apply Here. Leave a Reply Cancel reply Your open address will not order published. We are Rolf and Moritz. We have a passion for trading and sharing our knowledge. We travel the world and hope to inspire. We quit our corporate jobs a few years ago and are now living life the way we want it to be. Our holy forex is hard work and independence. We have a passion book sharing our knowledge of the markets and hope to help other traders improve their order. 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Simple Trick to Understanding Order Flow in the Forex Market
Simple Trick to Understanding Order Flow in the Forex Market
These themes continue throughout the play, and the two words of the title are used to capture the essence of the contrasting movements of its action.
But, it becomes very interesting once you get to see the results.