Disclaimer

You have to use this system at your own risk. All the examples and information
is given as per the success in history, no one knows the future. So, I don’t
guarantee and responsible for any loss or profit. You will have to test this
system yourself and then you have to use it at your own responsibility.
What is Order Flow analysis?

To analyse the trend with it factors that are Projection, Momentum, Depth,
Strength/Weakness.
Momentum
Momentum is the degree of angle of the swing.

Here, we have down trend and we can see that the angle of the red swings are
weakening. We call it decreasing momentum to the downside. It is sign of
weakness in downtrend. Vice-versa for uptrend.

And here, we have downtrend and we can see that the angle of the red swings
are increasing. We call it increasing momentum to the downside. It is sign of
strength in downtrend. Vice versa for uptrend.
Depth
Depth is correction and the height of the correction in the trend.

Here, we have downtrend and we can see that the height of the red correction is
increasing to the upside as price goes down. We call it increasing depth to the
upside. It is a sign of weakness in downtrend. Vice versa for uptrend.

We don’t consider about decreasing depth in any trend.

Projection
Projection is the height between previous low/high and New Structure
Low/High.

Here, we can see the height between lines BC is greater than height between
lines AB. We call it increasing projection to the downside. It is sign of strength
in downtrend. Vice versa for uptrend (in case of increasing).

And vice versa, in downtrend, if gap between lines BC is less than lines AB
then we call it decreasing projection to the downside. It is sign of weakness in
downtrend. Vice versa for uptrend (in case of decreasing) .
Now, these factors of Order flow can be observed only by eyes. But it may not
be exact / accurate each time. Why? Because our eyes doesn’t calculate exact
calculation of Momentum, Depth, Projection, Strength and Weakness like a
software.

But… an Indicator can do !

Yes. You might have used it before but not as Order flow.

So, we are going to use it for Order flow analysis to get exact picture of the
things going on in market.

So here are the indicators.

1. Bulls
2. Bears
3. Bull Bears Power

Combining and analysing these indicators we can observe the Order Flow easily
and accurate.

So, how to use them?

Bulls

In above picture, rectangle shows bull swings. We can see in indicator that, 2nd rectangle
bulls are less than 1st rectangle bulls. And if we look at the chart, we can see that 2nd rectangle
bull swing’s momentum angle is weak than 1st rectangle. So, the bulls are weak there.

Now 3rd rectangle is more less than 2nd and 1st rectangles in indicator. And if we look at the
chart, we can see that 3rd rectangle bull swing’s weaker than 1st and projection is also less.

In 4th rectangle you can see that bulls became more weak and if you look at the chart, you can
see that it has same angle as 3rd rectangle swing but length is less than 3rd rectangle swing. So
bulls get more weak.

So, thiss is how it considers all the factors of Order flow and shows the picture.

In Bulls indicator Bulls are represented above 0. Vice versa for Bears Indicator.

Always remember bulls rises above the 0 and bears rises below the 0.
Bears Bulls Power

Bears Bulls Power is used only to look overall summery / picture about bulls
and bears.

In above picture we can see the downtrend and bears are weakening. Bulls were
also weakening so it was sign of sideways / consolidation. But What happened
later? Bulls started to rise and Bears kept weakening. This tells us that bulls
may come in market and uptrend can start. Vice versa observe this in uptrend
and apply.

All above presented examples are Ideal and “usual” situation of the market.
Some times you may not see ideal things as below image. It is true, indicator
showed the correct information but you have to observe it in right way.

It is not necessary that bulls have to be weak as price / trend goes up. Here we
can see that bulls were rising as trend goes up. So, we will still hold the long
and keep our eyes on bears too. We can see that at the end of the trend bears
started increasing. So, now we should aware of the moves now. We also see that
at the top of the trend, bulls started
started weakening. So, here will close our longs and
look for short.

Now you should be aware of other factor of the market too. Which are Supply
and Demand, Support and Resistance, etc. If you don’t know about these factors
then please google it and study them first. It will be good to observe Bulls and
Bears at these levels for more accuracy.
What how would you use this system and what you need to use it?

1] Basic knowledge of Supply and Demand and Support and Resistance.

2] (Recommended) 15 or 30Min TF to observe Bulls and Bears.

3] Avoid choppy and messy pairs and use those pairs of which swings are clear.

4] AUDUSD is recommended to use.

5] Don’t apply any other indicators. If you do, results may occur different.

Good Luck