Understanding the reason why a currency pair moves is essential to development of every Forex trader. At the most basic level, price moves due to supply and demand imbalances in the market at any given time. Once you are able to grasp this concept, you can view trading from a logical lens. The key to using order flow trading is to determine market depth.It is a very important mechanism to use for both dealers and individual traders. While dealers have a Forex order book of their orders and can see when a market is likely to move or stall, the market eventually reveals everything and can be captured by individual traders by evaluating volume. Once you understand that concept it becomes a powerful tool in your arsenal.
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