All language subtitles for 1. Coisafit03

then when we over overlay that
and overlap that with supply

in which we want to position
ourselves in right we've used

multi-time frame analysis to
wait for all of those time

when we've identified the exact
high value areas of the trend

everything that we already now
know about market structure so

to those areas of supply now
when we combine this with

to the downside and we will
look to sell when price returns

buy when price returns to those
areas of demand and then we

price to rapidly move to the
upside but then we'll look to

to think about so literally all
we are doing is we're just

cover this a lot more depth in
the charts in a bit but now you

steps in again to take control
boom right pull back into

that we can then see on those
candles right as price

price and no time it's just
orders going through the market

on every single time frame
right time doesn't know price

price comes in a little bit
lower to fill those orders

same thing would just continue
to happen right if it's get rid

remaining demand, right? It
just happens again and again

here, break up those highs,
price comes back in to fill the

stepped in and we initiate out
that range, right? We come

price comes back in to fill
those orders where the demand

again and again right if you
just go and look on any single

price chart and you just scroll
back right you'll just see the

those remaining orders are
filled and demand is now fully

that level pick up those orders
and then boom you'll see

wants to buy so price then
shoots up to the upside but

supply and we have initiated
out that range and broken to

it's very likely that there's
still going to be a lot of

frames to sync to give us as
much confirmation as possible

provider and get a super
accurate view of what the true

so essentially just see that
middle column here of how price

and all of the total trading
activity goes through. So, you

total order book looks like for
the entire Forex market as a

isn't one central exchange
where all of the total volume

also look for where there was
an overwhelming amount of

overwhelming amount of demand
entered the market to cause

are trying to identify in the
charts you know where an

know really make it sink in but
when it comes to supply and

demand the following is
literally all you really need

things that we just discussed
in this lesson don't worry too

much watch it a few times if
you need to just to kind of you

you're a little bit confused
potentially about some of the

in price comes back into that
demand to then make another

demand to then continue to fuel
the move right and we have this

Forex market is an OTC market
which means it's traded over

price down past 1. 1529 I would
say the probability is that

price is more likely to see a
bullish move from that price

comes back in, fill those
orders right same thing

right it needed more demand to
then continue that move and the

the next orders, right? We get
that range, price initiates

ranging price initiates out as
we get that imbalance supply

another imbalance between that
supply and demand again as

demand of that huge buy order
of ten knots and the rest right

lots have been filled you know
if they were to enter that with

there may not be enough
liquidity to fill that huge

sitting demand back within
those initial price levels of

where there'll be orders and
the quality that price wants to

being filled and pushes priced
all the way up to the upside to

try and find as much supply in
order to fill all of those

the upside right so imagine you
know 10, 000 the orders just

supply and demand right where
demand has clearly overpowered

distribution between buyers and
sellers and then boom what

euros right? And they tell the
bank dealing desk that they

need euros in order to buy that
European company right? So they

Euro dollar. Now let's say that
a company over in America they

of what we just went through
how could that example possibly

participants but generally you
will see price kind of chopping

but you just need to know how
to be able to read it

look like on a price chart well
how we may potentially see you

candlestick charts because they
give us a lot of information

current best ask price meaning
you would hit that passive

current best ask and then the
difference between those two

right now when you go and look
at your own Forex broker what

price level so on the left hand
side you have the bids so the

hitting the bids and the asks
that are sitting there so it

can't really look at an order
book of just one liquidity

reading a price ladder can be
very very complicated as all of

large institutions in the
market. Now, because the Spot

order flow, right? Of the order
flow of the whales of those

that level so essentially what
this does is it gives you a

really great edge to look to be
buying around that level right

And this is what we're going to
dive really deep into over the

shows all of the bids and
offers you know those passive

as the future's market and most
stock markets is a price ladder

orders, those pending orders
that are just sitting there in

to help us with and refining
our positions and our exits.

supply that entered the market
to cause prices to rapidly move

and demand that cause those
huge shifts in the market so we

that level of 1. 1529 what do
you think are the odds that

to keep pushing price down past
that level to keep pushing

their client now if price
eventually gets back down to

if you instantly want to sell
an instrument then you will get

market ask or bid price. So
it's generally an app market

order. So if you just want to
instantly buy an instrument

order an aggressive order or
when a trader executes the

looking for where there are
large imbalances between supply

can kind of just see how a
simple example like that

those remaining orders and then
we come off right demand steps

range here demand steps in
price comes back in to fill

keep chasing the market higher
and higher and get filled at an

value between buyers and
sellers so half of their order

and now the market is sitting
out what is deemed to be fair

price back out to you know
balance both supply and demand

of all that price action and
play it forward a bit you know

and again, right? Price range
in, we initiate out, price

and then we move away, right?
We initiate out that range,

on those ask prices will
instantly get absorbed and the

imbalance between supply and
demand right because there was

hedge the risk of experiencing
that negative slippage and see

specified price or better below
or above the current market

the supply and demand that they
bring into the market via their

order book waiting to be filled
when price eventually reaches

a passive order is an order in
which the price is different

its way back down towards that
alert level back down towards

and demand, price comes back
into that demand and it fills

exact same thing happen again
where which you have price

those lots that that you know
the bank firmer institution

and up and up until every
single one of those 20, 000

order without experiencing
massive slippage because if we

eat up all of that supply and
price will just keep going up

those different ask prices now
if the bank was to instantly

and demand that then becomes
another extremely powerful tool

move here right again and again
and again so obviously we'll

actually is translated onto the
candles on the charts so if

really going anywhere with real
conviction right just some even

happens we get that
overwhelming imbalance between

market where we have you know
millions of different

orders in the market in more
simple terms it essentially

just means the interaction
between buyers and sellers so

mechanics behind that order
flow in the market so order

original range down here right
that was the origin of the move

continues to move up right it
pulls back it ranges demand

origin of that move, price
comes in to fill more orders

that let's say they need to buy
20, 000 lots of Euro dollar

need this transaction completed
within 48 hours and please give

because they're going to need
to sell their US dollars to buy

know something similar to that
and the the order book theory

frame analysis comes into play
and that's why we use

moved up and down those levels
and that's where multi-time

can be very hard to read so
instead what we use is a price

chart and a price chart gives
us tons of information on the

get a range, price then
initiates out, right? The

out, price comes back in to
fill those orders, right? We

around sort of you know ranging
sideways moving up and down not

in control and yeah we just see
the same thing happen again and

then fill so we will very often
see is in price start to make

know over simplified theory of
how it really goes on in the

really well in Europe. Now that
American company is going to

one pip so if you wanted to
instantly buy an instrument

prices is the spread right so
in this case the spread would

you will see is just the
current best bid and the

when you throw in the
aggressive orders that are

whole. But we don't need and
also in reality you know

shows the same patterns again
and again where you can

literally see where this is
happening so using all of the

hide the overwhelming imbalance
in the supply demand that they

orders through it creates those
huge shifts and imbalances in

that we just looked at
obviously a very sort of you

effectively so with this
example on this order book here

moved up and down those levels
but also how quickly price

the chronological order in
which those levels were traded

experiences that imbalance
between supply and demand at

right there will be a bit of a
reaction as the market

as this is where they hope that
the market will eventually

there will be more supply than
demand to absorb all of that

from whoever is asking for the
lowest price for the product

represents last price level
that was traded at so in this

the left so if you want to sell
then you have to sell to the

current best market ask and the
blue price in the middle that

current and the past prices
that have been traded and in

between supply and demand is
extremely dynamic especially

this buying and selling
activity so the interaction

price and what will happen is
the 10, 000 total lots sitting

there was enough supply at a
higher price level to balance

for an at market execution so
they hit the best current ask

level so what did price have to
do price had to rapidly shoot

told you that on the price
charts, they actually leave

bring you one step closer to
joining them because what if I

create to cause price to move
in their favor because their

liquidity. Now, being able to
recognize this is going to

the counter, this means it is a
decentralized market. So, there

with this huge demand and then
surf on the cottails of that

level right the very minimum
there will be a bullish bounce

amount of demands that is
willing to buy at each price

an aggressive order so an app
market order so what they may

orders that are sitting in the
market those limit and stop

in the markets which trade
through a central exchange such

trade back down to fill them
within the next 48 hours for

remaining 10, 000 knots as a
passive order so as a buy limit

order back down around that
original price level of 1. 1529

those remaining 10, 000 lots so
what they do is they leave the

order are actually visible in
the order book. You can see

your order book waiting to be
hit and then these passive

between all of these types of
orders. So you have the passive

right you will get filled at
the best current ask price. And

side of their positions in
order to utilize them for

ideal situation you know
markets are absolutely perfect

this would be quite a natural
process where buyers and

even worse price for their
remaining volume right for

has now been filled but the
bank doesn't want to you know

up in order to fulfill that
huge shift in demand until

an overwhelming amount of
demand at that current market

half of the position now so
they press buy on 10, 000 lots

price will shoot straight up to
1. 1539 due to that huge

so let's keep it simple and
let's just say that they enter

if they can average out a
better price for their client

buy at market with those 20,
000 lots price will absorb all

through all of those 20, 000
lots all in one go because

we can see the amount of supply
that is sitting there on all of

sitting on that dealing desk
they may not want to put

order instantly so that they
buy or sell at the current best

price or worse above or below
the current market price now if

price. Now the other type of
passive order is called a stop

orders are essentially just
pending orders sitting in the

do instead is split up the
order into smaller parts to

that the bank would be entering
into the market it's going to

of the supply on the right hand
side you know that huge demand

will call up their bank's
dealing desk and they will say

want to buy an innovative tech
company that is doing really

take a look at a very very
oversimplified you know a

order at 1. 1530 and you pay
the spread of one pip so let's

kind of a a really simple way
to think about this is passive

from the current market bid and
ask price. So this is typically

charts first we must understand
a little bit more about the

look at this current example if
you look on the right hand side

us the best possible price now
the bank's traders you know

live market. So imagine that
this was the order book for

move slowly and smoothly up and
down but when there is an

actually sellers supplying it
or maybe a lot more sellers

liquid the market is the easier
that price can slowly you know

be 1. 1530 minus 1. 1529, which
essentially means a spread of

buy at the ask on the right and
you sell on the bid price on

case the last trade that was
executed was someone buying at

theoretical example of what can
happen on the order book in the

that would be an aggressive
order and you would buy at the

the ask price of one spot 1530
because remember you have to

highest bidder and if you
want to buy then you can buy

at how we can you know see
these imbalances being caused

footprints and clues indicating
their manipulative actions.

supplying the product then
there are actually people

willing to buy it at the
current market price then there

aggressive orders where traders
just step in and instantly hit

amount of supply at each price
level so the top green level is

it is essentially just the
interaction so the interplay

filled at the best current bid
price. So order flow as a whole

the current best market bid and
the bottom red level is the

so commonly referred to as the
ask prices which shows the

supply and demand that is
sitting at each individual

level and then you have the
offers on the right hand side

increase in demand. And this is
the new fair market value. So

the exchange rate in the Forex
market, it works by the exact

the market reaches a new higher
equilibrium price from that

demand is to increase the price
to Ptwo. So then you will get

classified as passive orders so
essentially they're just

brokers where we discuss the
different order types in much

you haven't done so already
please watch the module on

there is a lot more quantity
demanded than there are

continuously every single
second that the market is open,

if the price goes up, then the
amount of supply will go up and

orders and it shows the amount
of volume so the amount of

which essentially visualizes
the order book. So, it's

otherwise known as the dom or
the depth of market and it

actually look like? Well,
something that is commonly used

either the current best bid or
ask price. So, what does that

them. So remember a limit order
is one way you buy or sell at a

orders right that they are
putting through the market. Now

between supply and demand by
those big players on our price

exiting the markets so that we
can tire my entries and exit

with extreme precision using a
mechanical edge but before we

the increase in the quantity
supplied from Q one to Q 2. So

this so now the price goes up
in order to increase the supply

of the product to meet that
increase in demand for it so if

them, you know, just sitting
there but then you have the

get away with charging a higher
price right because there is so

higher price so what happens is
the demand curve shifts up like

market to fulfill that increase
in demand. Or people you know

picture on where the big
players are entering and

the supply and demand in the
market now every time frame

hit right but the other type of
order is called an aggressive

pending orders that are sitting
in the order book waiting to be

more depth so both of those
stop and limit orders are

order and a stop order is where
you buy or sell at a specified

still have the product left to
sell they're simply just

much demand that people will be
willing to potentially pay a

what happens if there is a lot
of demand for a product? What

level. But people are still
demanding it. People still

price to a degree due to the
huge amounts of volume that

to trick traders into
potentially taking the other

process so the big players that
we mentioned earlier you know

sellers can freely agree on
price however in the financial

time frames together you know
it's going to provide a clear

price to either come up or come
down to them to hit them. So

limit and stop orders. So
orders which are waiting for

flow is the interplay between
both passive and aggressive

meet is where they agree to
exchange money for their goods

something generally the more of
it you're going to want to sell

if there is so much demand that
the product completely sells

quantity that is supplied to
the market for it will be at

its lowest. But as the price
rises the supply of the product

and a seller who supplies the
product because it takes two to

or you know more people will
then enter into the market and

because the higher the price
that you can get for selling

is an aggressive change in the
price level because either the

overwhelming imbalance between
the supply and demand so when

and sellers and that is how a
free market works now the more

order flow is just so large
because when they put their

institution they have the
ability to control movements of

See, these institutions, they
just have no way to actually

they put out into the market
you know using also of tactics

markets this movement of price
is often quite a manipulative

going to increase their prices
because they know that they can

everyone wants to buy a product
but nobody wants to sell it at

Well the price is going to
increase right? Because there

want to buy it but there's
noone there to sell it to them.

out and there are no more
sellers left at that price

will increase and increase and
increase because supply so

remove the demand code for a
second and we'll bring it back

hand corner where price is at
its lowest the amount of

So demand increases as the
price falls. Now let's just

amount to find the new market
equilibrium price so in an

the banks the head funds and
any any sort of large

supply or the demand right it
has to shift a significant

cheaper more people want and
demand it so at the lower price

P two more quantity of the
product is demanded at Q two.

expensive that they are but
generally when something is

a price is constantly moving
pit by pip to match the price

perfectly between the demand
and supply between both buyers

or service. And that determines
the price. So that price where

where the market price will be.
So where buyers and sellers

the market. We need both a
buyer who demands the product

everyone really wants to pay or
maybe can afford such an

curve where price is at its
highest the amount of quantity

demand for it will increase and
increase and increase more

line here and this line
represents the the demand from

needs to be an incentive for
new suppliers to enter the

same principle. If this
mechanism is going on

plot both the supply curve over
each other you can then see

the price P-1 then only way to
either fulfill or reduce the

the supply meets demand, that
is the fair market value. But

people will want to buy or will
be able to buy the product as

expensive price for product X
but as the price falls the

auction throughout the day with
buyers and sellers constantly

sellers in the market and we
can't just only have buyers in

supplying it so hopefully this
also makes logical sense

going to receive more money
right in exchange for actually

incentivized to supply and sell
the product because they're

in a perfect kind of free
market this would be a pretty

now the meeting point of those
buyers and sellers for whatever

bringing with them demand for
the applying that upward

place unless both the buyer and
the seller actually agree on a

reasons with their own unique
views ideas and beliefs around

make a market. So when you plot
both the demand curve and you

increases as the price rises.
But we can't just only have

X will increase that the higher
the price is so supply

product X. So down at the start
of the curve on the bottom left

people for the product so
obviously at the start of the

demanded for product X will be
near its low because not

they will also start to sell it
so the total supply of product

sellers of the product they
will then be more heavily

in a minute. So this line here
represents the supply of

numerous types of market
participants that we just

over extended periods of time
and can be used to make high

of the free market and that
interact of you know millions

discussed they are buying or
selling for their own unique

private individuals all buy and
sell currencies and the

down as a result of supply and
demand from market speculators

emotions and agendas that forms
price patterns that stretch

sellers of product X so now
what we do is we plot on this

right and then down along the
bottom on the X axis we have

hand side we have the price
level for the cost of product X

explain first we need to have a
quick and very very basic

it gets cheaper that makes
logical sense right of course

there are some exceptions you
know like designer clothes for

example where more people
actually desire them the more

themselves over and over time
and time again you know crowd

that we actually see on our
charts and that price action

can often be quite a heavily
manipulated process so let me

what the currency pairs they
are trading are actually worth

reason that they are acting is
price so no trades can take

so everyday investors and
traders both institutional and

the quantity of product X that
is available to buy from

smooth and fair process however
in the financial markets this

lesson on economics 101 so in
this on the Y axis on the left

competing with each other to
get the best possible price now

participation is what drives
the order flow that is put

that we can think about. Now
all of those are affected by

as us. Now that is of course
not an exhaustive list of

then creates patterns and it's
these patterns that repeat

probability forecasts of where
price may potentially move in

the future our currency
exchange rates they move up and

psychology is being reflected
in the prices of stocks indices

through the market so that
interaction of buyers and

market participants which is
kind of some of the main ones

financial institutions those
are the other big players who

various reasons Then we also
have speculators who are purely

of different participants for
as many reasons or of their own

pressure on prices or sellers
bring supply applying downward

pressure on prices and the
market runs like a continuous

price so this drives the price
of currency pairs with buyers

commodities futures and
currencies since the beginning

sellers with that order flow
then prints the price action

the forces of human emotion
that come into play when sums

of money are involved. And all
of this behavior and

institutions as well as
independent retail traders such

thousands of tons of timber
from Canada for example then

takes on a kind of you know
herd mentality. So technical

reflected on a price chart. So
you have big commercial

trading to try and extract the
profit from the movement in

companies you know putting huge
orders through the market save

Japanese yen for Canadian
dollars in order to make that

opportunities through the study
of price movement and volume

purchase so they approach the
dealing desks at large banks to

are putting you know massive
orders through the market for

they're going to need to
exchange a large amount of

from that battle between buyers
and sellers that is then

order flow that then generates
the market structure that we

the order flow of the market.
But now we are ready to start

fear, greed and uncertainty,
their combined behavior kind of

exchange rates, right? And this
also includes large financial

structure as a mechanical
framework to guide us through

repeatedly shown speculators as
an aggregate they are often a

facilitate that transaction on
their behalf so BFIs banks and

very very emotionally charged
group. Now when you get

have just been spending time
analyzing. Now as history has

a Japanese construction company
maybe they need to buy

millions of them together in a
highly emotional money game of

analysis is the framework that
we use to identify training

structure and how we
essentially use market

So now we should have a very
solid understanding of market

actually behind the production
and the interaction of that

to look at the actual mechanics
of the market as in what is

next few lessons.