The power of order flow is undeniable in today's trading markets. Using this tool can give a trader an edge no matter what markets they choose to trade. Commodities markets, which are known for their quick and frequent price movements, may benefit from this the most. Order flow trading provides insight into the inner workings of the market, allowing traders to recognize trends before they happen and take advantage of them more quickly. The power of orderflow has been proven time and time again by many successful traders, and as such it should not be overlooked when it comes to building a successful trading strategy.
When it comes to trading the commodity and equity markets, there are fundamental similarities that are key to understanding. Many of the same strategies used in trading equities also apply to commodities. Essentially, you need to analyze the current supply and demand dynamics, as reflected in the order flow.
