Alexander Nathaniel L_ Young

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What is order flow in forex and why is it important?

Order flow refers to the actual buying and selling activity driving price changes in forex. Unlike technical indicators, which lag, order flow shows supply-demand imbalances in real time. Institutions analyze flow via Level II data, client order books, and interbank transactions. Retail traders have limited access but can use proxies like price action around key levels or broker sentiment tools. Benefits: deeper understanding of why prices move. Risks: order flow data is fragmented across venues and may be misleading. For traders, mastering order flow bridges the gap between raw price charts and the true mechanics of market movement.