Abstract: The technical and fundamental analyses usually reflect the price movement in the Order Flow. In order for the Market Price to move, for a certain trading instrument, at a certain moment, the participants (buyers and sellers) have to execute enough orders to consume the liquidity at the best Bid or Ask offer. The behaviour of the market participants can be determined by the Order Flow (market orders, limit and stop orders) generated by the other traders. In the first part of this article I will present some general aspects of the order flow and how it can be used in trading with the help of the existing tools from Dukascopy. In the second part I will make a few order flow book tool proposals for Dukascopy Bank. Part 1 - General aspects of the Orders Flow Analysis.Definition 1: An open order is an order to a broker to buy or sell a currency at a certain price whenever that price becomes available. Theoretically, such an order is standing indefinitely until either the currency is bought or sold at the specified price or the investor cancels the order. (source Financial Dictionary)Definition 2: An order book is the list of orders (manually and electronically) that a trading…
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