New traders will often hear of Banks & institutions in the markets, active at certain levels, and indeed will often see the huge moves created by their activity, but alas are sadly unable to gauge where these players are entering the market, and even less able to gauge how to benefit from these constant streams of liquidity.
We at Littlefish have developed an indicator which tracks the flow and volume of Banks & institutions in the markets and generates signals offering the opportunity to align with these directional flows. As with all great indicators, the indicator is most profitable when used as part of a solid trading strategy that seeks to identify potential market entries and then uses the Order Flow Trader as a powerful confirmation tool.
Read on as we run down the five Order Flow Trading Strategies you need to try right now!
1.ORDER FLOW WITH COT
What Is It?
- Making the absolute most of available market information, this strategy is an incredibly powerful way to trade in line with the big fish in Forex. Our COT indicator automatically pulls the data from the weekly COT report to display the positioning of the main market participants directly on your charts, giving you the broader directional bias of Banks and institutions. Order Flow trader then tracks the flow and volume of their activity to give specific entries in line with their directional bias.
Best Thing About It
- Made over 39,000 pips profit in 2014
- Trades in line with Banks & major institutions
- Clear, easy to read signals
- Only takes small amount of time to check charts for signals
2.MULTI-TIMEFRAME ORDER FLOW
What Is It?
- An incredibly powerful swing trading strategy looking to trade in line with Banks & major institutions on a much broader scale, using higher timeframe OFT signals to signal a trade direction and confluent lower timeframe OFT signals to confirm and execute the trade at a reduced risk and potentially gain entry to much larger moves.
Best Thing About It
- Only need one indicator on your charts
- Generates really high profits through multiple confluent positions
- Trades in line with Banks & major institutions on a longer term basis
- Catches fantastic trends
3.TRIPLE THREAT TRADING (ORDER FLOW WITH COT & PIN BAR)
What Is It?
- A bit of a tweak on our Order Flow & COT strategy, this time we bring the classic Pin Bar candlestick which is an LFX favourite, to act as further confirmation on our trade entry. Geared towards the more conservative trader, this three tier strategy helps to identify prime entries to broad market moves with the security of a multiple filter approach.
Best Thing About It
- Much more conservative, lower trade frequency
- Gains entry to big market moves from really accurate signals
- Uses market information and price action to generate profitable trade entries
- Can use our Pin Bar Indicator to automatically highlight Pin Bars and customize their parameters
4.ORDER FLOW WITH RSI
What Is It?
- Combining the best of the old and the new, this powerful swing trading strategy is incredibly straight forward and easy to follow and uses RSI divergence along with Multi-Timeframe OFT confirmation to highlight fantastic trades. Higher timeframe traders will love the simplicity and effectiveness of this method.
Best Thing About It
- Totally enhances RSI divergence effectiveness
- Works off Daily & H4 timeframes and so plenty of time to monitor setups.
- Can be used on lower timeframes too.
- Gives really tight entries at big reversal points
- Really simple strategy with easy-to-learn process
5.ORDER FLOW WITH CHART PATTERNS
What Is It?
- An extremely effective strategy teaching the trader how to read market structure and use OFT to confirm movements in line with historical market patterns creating powerful trading opportunities with simplicity and ease.
Best Thing About It
- Simple and reliable method
- Works on all timeframes
- Only need basic analysis + OFT
- OFT is a great tool for filtering false breakouts and false moves which are traditional issues with pattern trades
This market forecast is for general information only. It is not an investment advice or a solution to buy or sell securities.
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Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Editors’ Picks
EUR/USD looks offered below 1.1900
EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.
GBP/USD slips back to daily lows near 1.3640
GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.
USD/JPY drops toward 155.00 as focus shifts to US data
USD/JPY meets fresh supply and inches closer toward 155.00 in the Asian session on Tuesday. The Japanese Yen holds the upper hand over the US Dollar after Japanese Prime Minister Sanae Takaichi led the ruling Liberal Democratic Party to a historic landslide win and on intervention talks. Traders brace for key US economic data that could offer more clues on the Federal Reserve's monetary policy.
Editors’ Picks
AUD/USD meets initial resistance around 0.7100
A decent rebound in the US Dollar is behind the AUD/USD’s daily pullback on Tuesday. In fact, the pair comes under modest downside pressure soon after hitting fresh yearly peaks in levels just shy of 0.7100 the figure on Monday. Moving forward, investors are expected to closely follow the release of Chinese inflation data on Wednesday.
EUR/USD looks offered below 1.1900
EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.
Gold the battle of wills continues with bulls not ready to give up
Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.
Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute
Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.
Dollar drops and stocks rally: The week of reckoning for US economic data
Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.
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