This here is to help u understand how orderflow is done
Using the line chart to help u identify key area of structure
This is applied to all timeframe n all markets !
When a Market approach a key area of liquidity key area are above n below major zones of s n r. The market will either breaking or fail to do so this is already predetermined n can been seen in the price action before price even gets to the zone. When it approaches the zone here for an ex there is a high shit load of traders n preexisting limits order above structure as traders are anticipating a failure to break higher !
When the market breaks the zone by it taps into this liquidity this cause a reject either in a pull back or Failure here the market pullback n turn n broken through the structure after this move now the market will either stay above or drop if the market is able to generate signs of continue strength and trend it's just own the zone in which it'll now act a strong support to protect it from dropping below the more strong trend bars it's place with time generated above increase the likelihood of this exchange next the market will always pullback to a recent area of imbalance at or near the zone even the breaching candle for them to cash in on that profit that they make from the liquidity pull n to scale out n buy back their shorts this is why markets retrace it's all bout the money generated at that zone the money they spend to drive price they the zone
When they do these types of moves they are establishing the trend if strength is continue that's why they spend the resources to do such action and until that zone is breach the markets long term direction is in the breaching direction
Gl
Using the line chart to help u identify key area of structure
This is applied to all timeframe n all markets !
When a Market approach a key area of liquidity key area are above n below major zones of s n r. The market will either breaking or fail to do so this is already predetermined n can been seen in the price action before price even gets to the zone. When it approaches the zone here for an ex there is a high shit load of traders n preexisting limits order above structure as traders are anticipating a failure to break higher !
When the market breaks the zone by it taps into this liquidity this cause a reject either in a pull back or Failure here the market pullback n turn n broken through the structure after this move now the market will either stay above or drop if the market is able to generate signs of continue strength and trend it's just own the zone in which it'll now act a strong support to protect it from dropping below the more strong trend bars it's place with time generated above increase the likelihood of this exchange next the market will always pullback to a recent area of imbalance at or near the zone even the breaching candle for them to cash in on that profit that they make from the liquidity pull n to scale out n buy back their shorts this is why markets retrace it's all bout the money generated at that zone the money they spend to drive price they the zone
When they do these types of moves they are establishing the trend if strength is continue that's why they spend the resources to do such action and until that zone is breach the markets long term direction is in the breaching direction
Gl