📋 Video Summary

🎯 Overview

This video, "Order Flow Explained" by TJR, provides a comprehensive guide to understanding and utilizing order flow in trading. The host breaks down the concept of order flow, how to identify it, how to spot when it's being respected or disrespected, and how to apply it to both lower and higher timeframes for identifying trading opportunities and establishing daily bias.

📌 Main Topic

Order flow analysis and its practical application in trading to determine market trends, identify potential trade setups, and establish daily bias.

🔑 Key Points

• 1.What is Order Flow? [0:57]

- Order flow is essentially the trend of the market: uptrend or downtrend.

- It's a fancy word that traders use to explain trends.

• 2.Identifying Bullish Order Flow (Uptrends) [1:49]

- Look for higher highs and higher lows.

- This is the foundation of identifying an uptrend.

• 3.Identifying Bearish Order Flow (Downtrends) [2:31]

- Look for lower highs and lower lows.

- This is the foundation of identifying a downtrend.

• 4.Disrespecting Bullish Order Flow [3:21]

- Break of Structure: A candle closure below the most recent low [4:39].

- Inverse Fair Value Gap: Price closes below a bullish fair value gap [5:17]. - 79% Fibonacci Extension: Price moves past the 79% level of a Fibonacci retracement [6:06].

• 5.Disrespecting Bearish Order Flow [6:54]

- Break of Structure: A candle closure above the most recent high.

- Inverse Fair Value Gap: Price closes above a bearish fair value gap. - 79% Fibonacci Extension: Price moves past the 79% level of a Fibonacci retracement.

• 6.Respecting Order Flow [7:44]

- Bullish Order Flow Respect: Price hitting equilibrium, filling fair value gaps, hitting order blocks, and breaker blocks [10:08].

- Bearish Order Flow Respect: The opposite, price action reacting to bearish order blocks, breaker blocks, etc.

• 7.Applying Order Flow to Charts (5-Minute Timeframe) [12:44]

- Use 5-minute order flow to dictate where to enter trades.

- Look for a break of structure on the 5-minute chart to identify the current order flow. - Scale down to the 1-minute time frame for entry signals.

• 8.1-Minute Timeframe Reversal [15:39]

- The 5-minute retrace typically causes the 1-minute order flow to change direction.

- Once the 1-minute chart breaks structure or inverses a gap, it can be a signal.

• 9.High Time Frame Order Flow and Daily Bias [17:26]

- Identify the point in the high timeframe trend.

- Are you sweeping liquidity or filling an imbalance? - Focus on what the market is likely going to do.

• 10.High Time Frame Example [26:28]

- Price breaks bearish order flow.

- Price comes down to respect bullish order flow, filling a fair value gap. - After the higher low, the market will extend upward to take out highs.

💡 Important Insights

• •Simplification is Key [29:35]

- The presenter emphasizes the importance of simplifying trading concepts to a basic level to truly understand them.

• •Daily Bias [17:26]

- The presenter explains that identifying the daily bias involves understanding the current phase within the high-timeframe trend.

📖 Notable Examples & Stories

• •The "Beginner" Video [17:30]

- The video references a previous video on daily bias that was criticized, but now the concepts are widely used.

• •NASDAQ Example [28:50]

- The presenter uses a real-world example, showing how the market is respecting order flow and the potential future moves.

🎓 Key Takeaways

• 1.Order flow is the trend, and understanding it is crucial for identifying market direction.
• 2.Identify when order flow is being respected or disrespected using specific confluences.
• 3.Apply order flow principles to both lower and higher timeframes to find entries, set targets, and establish daily bias.

✅ Action Items (if applicable)

□ Practice identifying break of structure, fair value gaps, order blocks, and breaker blocks on charts. □ Study high-timeframe trends to determine the current phase of order flow and daily bias.