a concept that made me and the mmt members a lot of profit is orderflow orderflow is my baby it is my everything orderflow is what made me fall in love with fair value gaps and today I want to introduce you to orderflow and if you don't watch out you will also fall in love with fair value gaps all right perfect in the third video of the MMC series I want to go over first finish that market structure topic we talked about in the previous video then move on to order flow and you will see as well how closely Market structure and Order flow are actually related to each other in the first slide I want to go over what are the PD rates so revisiting the first video that we had we talked about fair value gaps fair value areas which we mainly talked about in the previous video and also swing points we talked about the daily time frame how we want to use the daily time frame for those fair value gaps and those swing points those are our targets so let again Mark out those targets for this video I want to go over Euro JPY and I want to Mark out the following targets so again you will notice that mainly my targets are to the left side of price action this has a reason and this has to do with order flow which we're going to touch on later on now focusing on how we deliver towards this swing low right there and also this swing low sitting right there on again the daily time frame now moving on to the next slide we need to discuss then Market structure because in the previous video we talked about intermediate term highs intermediate term lows which again like mentioned discussed in the previous video so those intermediate term highs intermediate term lows is not something we will dive into to in depth in this video we'll revisit them yes but we will move on to short-term highs and short-term lows right there and how they transfer over to orderflow so to understand that let's dive into those short-term highs and short-term lows a little bit deeper short-term highs and short-term lows this right here in the left side you will see a shortterm high a short-term High very much like an intermediate high is simply set a swing high so it all starts with understanding those swing points but the difference between the short-term high and that intermediate high is that this short-term high does not have those swing highs lower to the left of it and lower to the right of it and also a huge difference which is very important to understand is that that short-term High leaves behind a fair value Gap right there so a short-term High swing High followed by an fvg those are the short-term highs that we want to focus on then in a bearish or in a lower Trend short-term highs will be protected until we reach an intermediate term low now what that exactly means what that looks like is what we're going to go over in a little bit but before we do that we of course need to understand a short-term low as well well the exact same just inversed so a swing low right there followed by an fvg short-term low does not have to have those swing lows higher to the left of it and higher to the right of it so the short-term low swing low followed by an FG in a bullish in a higher Trend a short-term low will be protected until we reach an intermediate term high this All Leads back to the following understanding price is always moving towards a p it is our job to find out which pay is next this is all helping us into understanding the direction of price action now before we dive into the chart I want to go over one more slide right here the time frames again I need your full attention with these slides if I didn't already have that because this is an extremely important topic and can be extremely confusing if you do not pay attention so here swing points fair value gaps we marked them out like we did in the beginning on The Daily time frame again so those swing points they are our targets then we can use short-term highs and shortterm lows on the 4H hour and the 1H hour time frame right there very similar to what we did in the previous video with intermediate highs and intermedium lows also on the same exact time frames but there's a difference between those and that's what we're going to go over so let's dive into the chart so on The Daily time frame right here we are going to be focusing on this low and this low right there as our main targets going down one time frame into the 4-Hour time frame right here we will start to notice that again we have intermediate term lows and intermediate term highs I'm going to again Mark out those intermediate term highs and intermedium lows with those blue circles like we did in the previous episode so there we have intermedium high there we have intermediate term low right there these are the main intermediat term lows and intermediat term highs that we want to focus on now these intermedium highs intermedium lows they give us that fair value area like we saw in the previous episode this for example is this fair value area the overall intermedium highs intermedium lows they give us the bigger view the birds eye view of what Market structure wants to do with short-term highs short-term lows and then moving on to orderflow we are going to dive deeper into how far price can retrace and what we can expect in the next few candles so we are going to get more accurate and it starts with those intermediator highs and those intermediator lows because if we take the first intermedium High and the first intermedium low sitting right here then when we move from an intermedium high to an intermedium low we will see that shortterm highs will be created on the time frame below so if we go into the lower time frame and now we focus on the price action from this intermediate High towards this intermediate term low right there Then here on the 1 hour time frame we can see when this intermediate term High gets created we actually have a short-term high at that moment in time because we have this swing High followed by this fair value Gap right there this shortterm high right here follows through and holds what does that mean that means off of that short-term high right there we continue lower creating new bearish fair value gaps but if we dive into even a lower time frame and we focus on the next piece of price action sitting right here then we will see on the 15minute time frame from this 4H hour intermedium High towards this 4our intermedium low right there we again create those short-term highs so this right here is a short-term High followed by these fair value gaps right there we come back into this fair value Gap right here then afterwards we create a new swing high sitting right there that is again a new short-term High followed by this new fair value Gap right there then we retrace back into this fair value Gap again right here and we leave behind a new swing High creating a new shortterm high to continue lower then we have one last sting into this fair value Gap right there where we again create a new short-term High to eventually reach the target of the intermediate term low that we have towards the left right there so what do we see in this movement lower right there towards the intermediat low we see that short-term Highs are holding price so they do not get traded back above those short-term Highs are getting respected meaning that we do not trade above those short-term highs we retrace back into those fair value gaps to then continue lower off of it until we reach this intermediate term low right there because like we mentioned in the PowerPoint slide those short-term highs will hold until we reach an intermediate term low because right here this is where it gets messy right now we have some short-term highs holding some short-term lows holding it gets very chaotic and that is because we have reached a main target in the form of this intermediate term low right there and whenever we have reached that intermediate term low right there then we can expect a bigger retracement as well but before we look at those blue circles right there let's look at the shortterm High actually right here on the 15 minute these short-term highs that we have on the 15 minute if we go down time frames into the 5 minute for example right here or into the one minute right here then what do we notice that those 15minute short-term highs turn into what one minute intermediate term highs and these intermediate term highs on the one minute if we now again zoom out then on the 15-minute time frame those are shortterm highs and if we zoom out further then we go back to the 4-Hour time frame these intermediat term highs and intermediate term lows that we had on the 4H hour time frame are what on The Daily time frame a shortterm high and a short-term low right there now I'm going to tell you why that is important to understand if we move on to the next slide right here Market structure now leads to the understanding of order flow we understand those intermediate highs intermedi lows short-term lows short-term Highs but short-term highs is on another time frame an intermediate term High and a short-term low on another time frame is an intermediate term low so if we have a short-term high on the daily time frame that's going to be an intermediate High most likely on the 4-Hour time frame and the same can be said if we go down time frames even more so for example a short-term low on the 1 hour time frame could be an intermediate term low on the 15-minute time frame it is all fractal and we're working towards a fractal understanding of the market arguably one of the most important parts in trading is understanding how those time frames show the same exact thing just on different time frames and that is what we're working towards here because now this daily time frame for example has a short-term high right there this on the 4-Hour time frame is an intermediate term high right there now why am I telling you this and why does it feel like I'm trying to confuse you well the thing that I'm trying to prepare you for is the following this is so we don't get lost in the lower time frames later on so when we learn how to navigate those different short-term highs intermedi term highs on different time frames then this in the beginning might be a little bit confusing but it will be a lot more confusing if we don't understand this when we dive into the lower time frames so if you understand that those short-term highs and intermediat term Highs are essentially the same intermediat term highs or short-term highs short-term highs or intermedi term highs then you understand this and that's perfect then we can move on now moving on we now dive into order flow because those short-term highs and short-term lows that we just talked about where swing High needs to be followed by a fair value Gap that is Market structure yes but if we now dive deeper into that and we can actually dissect it so again like I mentioned Market structure is the bird's eye view order flow is the more accurate representation of what is happening at this moment in time then that short-term High followed by a fair value Gap is an orderflow lack so what does that mean let's dissect that orderflow lack breaking down orderflow lack it has all three eray it has number one a swing point right there so at the top we see a swing point and that is what makes it a lack so when I refer to a lag a lag in price action is when we have a swing High followed by a f Gap or swing low followed by a f Gap then it would be a bullish lag this is a bearish orderflow lag and after that swing point we want also a fair value Gap right there so we see the order flow lag also has a fair value Gap but an order for La has one more PD and that is of course the fair value area because the retracement that we had up right there is what we talked about in the previous video that is that offering of the value to then continue lower leaving behind that fair value area now why is that a fair value area because didn't we just mention in the previous video that a fair value area is from an intermedium low towards an intermedium high and vice versa well what did we just talk about in the previous slide an intermedium high is the same as a short-term high intermedium low is the same as a short-term low so this is a fractal understanding of a fair value area now this is where it gets in my opinion even more interesting because I'm just very passionate about it right here Order flow then tells us the intention of price but let's work that back because we mentioned in the first video that fair value gaps are superior why because you don't have an orderflow lack if you don't have a fair value Gap you don't have a fair value area then if you don't have a fair value Gap so order flow tells you the intention of price yes but fair value gaps tell you the intention of price we see the intention of price is again orderflow but those fair value gaps they are superior for a reason they are the most important and it's beautiful because this is exactly how I got to understand fair value gaps how I fell in love with fair value gaps because then I understood hey it's all about fair value gaps so here no fair value Gap is No orderful Lack no fair value Gap is no fair value area here we see a lack where we only have that swing point at the high right there we don't have a fair value Gap meaning that we don't have that orderful lack and we all also don't have that fair value area so in order for it to be an oral La again we need a fair value Gap and in order for us to need a fair value area we need a fair value Gap as well and that is talking about those short-term highs and short-term lows now we want to start off with understanding the daily time frame because this in itself is a lot of information and it's quite Advanced if you can understand this you are doing an amazing job but we first want to understand the daily time frame before we apply it to any other time frame so looking at order flow through the length of the daily time frame so then coming back to Euro JPY right here where we left off these blue circles where on the 4-Hour time frame those intermediate highs and intermediate term lows then on the 15minute time frame right there we understood that here these are short-term Highs but these are not only short-term highs these are now order flow lacks that we can continue lower off of these these order flow lags tell us the intention of price and what I mean with the intention of price is the intention is where price truly wants to go towards so if price wants to continue higher wants to be bullish it will be told by order flow lags if price wants to continue lower it will also be told by bearish order flow lacks so if we again zoom out to the Daily time frame because what do we then have on the daily time frame well what does it look like we have a perfect order flow lag where we have the swing high right there the swing Point number one perfect we have one more candle in the making right there and now we have a fair value Gap sitting right there and we also have the fair value area sitting right here so we have all three PD rays and that is simply because we have a fair value Gap going lower with that shortterm high so on The Daily time frame we can Now understand that if we want to continue lower right here and reach for this swing low and this swing low then we will not trade back Above This high right there because that is the high of the order flow lack this then tells us the intention of price right here where we sting into it into the F Val Gap and we can continue lower towards those targets so we're looking at those daily targets and those daily order flow lags and if we even dive into it a little bit deeper than here we have this fair value Gap right there what gets created at that daily fair value Gap a 4H hour intermediate term high right there what gets created right here if we go into the 1H hour time frame 1 hour shortterm highs right here and right here and which highs do not get taken out it is consistently the shortterm highs that are protected right there and we continue lower but what about a again this order flow lag for example right here that we have that we can continue lower off of what's important to understand that we previously right here towards the left we talked about this intermediator low getting taken right there so we can expect a bigger retracement but that bigger retracement happens because on the time frame above us there is a new orderflow lack so if we zoom out the reason why we create the retracement is because we are retracing back into the fair value gap of a daily order flow lag right there and this is what we're going to build on to because the higher the time frame the more important the time frame so the daily time frame right here is stronger than the 1 hour time frame and if we go up time frames more then the higher we go the stronger the time frame so here what can we safely assume that we are not going to take out this High That Swing high that we have right there before we might take out this low now this fair value Gap is not confirmed yet meaning the orderflow lack in itself is not confirmed just yet but if we create that fair value Gap right here then we can safely assume that we have a good understanding of the direction because we are most likely going to take out this low first before we trade back towards that high so to give you a few examples and to build towards the next video which is candle science then right here we see order flow on US Dollar Canadian Dollar on The Daily time frame again we have this daily Val gap which we try to continue lower off of we don't create a new order flow lag going lower then afterwards we do create a new bullish order flow lag right there and this bullish order flow lag is then what we can continue higher off of after that we create again a new bullish order la which will be created in about 2 hours that is what we again can continue high off of then towards these highs then right here on ndaq we see the following that we have this orderflow lag going higher right there every lag every orderflow lag which has a fair value Gap in it has a higher probability of holding that is why this works because those fair value gaps they tell you the intention they are the footprint of the bigger will in the market they are going to tell you it's going to continue higher and that is told through those fair value gaps they can't hide the orders which is why it's called order flow and you see every low of the lag that has a fair value Gap in it right there is not getting taken out until we reach this orderflow lag right there and that might be an indication that orderflow is then again switching with this bearish order flow lag right there so again for your own sake start doing case studies and you will get to the same conclusion what I'm telling you right here the following case study study orderflow lags on The Daily time frame and see how they tell you the intention of price see how they tell you the direction that price wants to move in everything I do in the mmt is based off of order flow so it's an extremely important concept to understand all right perfect thank you