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Mariel90

Trading based on orderflow versus trading based on price action

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Price action vs. orderflow
Orderflow analysis entails reading the orderflow footprint chart for various signals, whereas Pure Price action analysis entails analyzing raw price action on raw charts without the use of any indicators. The chart could be of any type, but candle charts are the most commonly used.
The Benefits of Orderflow
It is claimed to desecrate the candles in order to reveal live activity of buyers and sellers on the bid and ask.
It is said to be effective in shorter periods of time.
Orderflow's disadvantages
It only applies to the Ninja Trader platform (I have yet to see it applicable on other platforms)
Unless you get a cracked copy, Orderflow software is expensive to buy ;):p
Learning takes time.
They frequently display different signals on different machines (for example, a buy signal may appear on one machine but not on another, despite the fact that the data feed is the same!!). I've had my own experience with this one, and boy was it perplexing!!!
Price Action's Benefits
It is unadulterated in its form... (I mean, if a long wick appears in one candle, it will most likely be similar across the board, regardless of the broker, because there will be data variation amongst them.) Unlike O.F, which displays the wick but the data inside the candle is incorrect.
It is available on all trading software and thus inexpensive to use.
Price action disadvantages
It takes time to study and comprehend.
These are based on my more than a year of experience with OF. It did not work for me because it was inconsistent (Though I did have some profitable days though I feel price action is more superior)

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Correction is not only available in Ninja Trader, but it is also available in MT5. However, you must purchase the EA in the Market wrt the Footprint charting Sierra Charts also has OF.

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I've spent the last six months learning price action and have had some success, but not consistency. So now I'm going to try to learn orderflow!

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I have not been consistent with the price action technique; if anyone can recommend a good book on the subject, I would be grateful.

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For scalping, I recommend Thomas Carter's "Forex Scalping Trading Strategies."
For swing trading, Kathy Lien's book "Day Trading and Swing Trading the Currency Market" is a good place to start.

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