How to analyze an order book with Pro Oanda tool
Nowadays the order book is one of the few instruments that provide a trader with truly useful information, which greatly facilitates making trading decisions.
In contrast to various indicators, which are generally meaningless, the Oanda order book displays absolutely valid data on trading positions and open orders of traders.
Pro Oanda tool
Pro Oanda is a remade from scratch version of original orderbook. It provides us with more detailed data about market sentiment.
You can use the Oanda Pro for more accurate analysis of basic patterns, which you can find just below.
Here are some examples of analysis made by the Oanda Pro.
You can compare volumes on each side of the order book:
Or you can compare the current order book snapshot and the one made 2 days before it:
It’s hard to explain all the available types of analysis, which you can make with the Oanda Pro, so you should try to interpret it by yourself.
Order book’s patterns cheat sheet
These are the Oanda order book’s basic patterns for a buy signal:
These are the Oanda order book’s patterns for a sell signal:
Each of these patterns can generate signals separately. However, the more patterns are formed at the same time, the more effective is trading.