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Order flow basics: the beginner course

Module 03 · 3 · The order book and the mechanics of priceLesson 13 of 659 min🔒 Students only

How price really moves

Price does not rise because there are “more buyers than sellers”. There are always exactly as many contracts bought as contracts sold: every transaction has a buyer and a seller. Price rises because buyers are more in a hurry than sellers, to the point of accepting to pay the ask, then the next ask, then the next one. It is urgency that moves price, not numbers.

In concrete terms, price moves in only two ways. Both can be read in order flow, and confusing one with the other is the most frequent beginner mistake.

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The rest of this lesson is for students

Also in this lesson
  • Mechanism 1: consumption
  • Mechanism 2: withdrawal
  • Full zones and empty zones
  • Absorption and breakout: the two outcomes of an encounter

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