What is Order Flow Trading

[golddigger]

I need some experts in telling me the basic principles or mechanism of order flow trading... Have been hearing this name but have no idea on what is it about..

 

[jmd1982]

Order flow trading is a method that attempts to anticipate price movement based on the current orders that are visible on both the buy and sell-side. How many bids are being placed versus asks? The unknown factor, of course, is the number of buyers and sellers that suddenly jump into the markets (or traders who might know if any large buyers or sellers are about to jump in).

 

[firehand]

does order flow trading same as depth of market (DOM).. like trading stocks we can see queue buy/sell bid/ask.. wondering do we have this info on MT4?

 

[Wsheks]

Order Flow, as the name suggests, is essentially the transactions of the orders that are taking place in the market.
It can probably be considered price action in its purest form.
There are 4 pieces of information that traders use to read Order Flow:

Size of the Bids and Offers.
Market Profile (Total volume traded on each level).
Transactions on the Inside Bid & Offer (Buy & Sell transactions at each level).
Bids and Offers that got pulled.