Imbalance state create's opportunity's

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Order imbalances can often occur when major news hits a stock, such as an earnings release, change in guidance, or merger and acquisition activity. Imbalances can move securities to the upside or downside, but most imbalances get worked out within a few minutes or hours in one daily session. Smaller, less liquid securities can have imbalances that last longer than a single trading session because there are fewer shares in the hands of fewer people.
Investors can protect themselves against the volatile price changes that can arise from order imbalances by using limit orders when placing trades, rather than market orders.

As in any market the purpose of trader / speculator / investor is to buy an item or instrument at discount (wholesale price) and sell at retail price, the forex market is no different. We as retail traders are unable to see actual buy/sell orders in forex market, but we can apply our knowledge of supply & demand to identify our next level of interest, where we believe smart money (large players / institutional traders, real market movers) are most likely to place their orders. Our main area of interest would be, where price made a substantial move from a particular zone and where actual imbalance of supply and demand between buyers and sellers occurred. It could be a series of candles or one candle, but it should clearly show a decision point where either buyers or sellers took charge. Once a zone is identified, our job is to wait until price approaches that zone again. We could either place a limit order or watch price action to enter trade at that zone.

100 K!!

Who the hell has that much money !

As with any system or strategy we cannot be 100% sure that price will again respect that zone, but there is a higher probability than not that price would react at that zone, considering the way price left that level the first time, suggest that buyers/sellers consider it as an important zone. Let's look at attached chart example, which is self explanatory:

There are four common structures that are used to identify supply & demand levels on forex charts:

1) Drop- Base- Rally
2) Rally-Base-Drop
3) Rally-Base-Rally
4) Drop-Base-Drop

I firmly believe that once a trader understands supply & demand dynamics and trade with patience, discipline and proper risk management, he/she could achieve success in trading.

Real Activity Versus Noise

The key to effectively dealing with trading noise is to first recognize that it occurs during most trading sessions. A good example is the so-called Institutional lunch, which in truth is the period of time between the morning session - the first couple hours of the cash or pit session - and the final couple hours leading into the pit or cash-session close. Generally speaking the institutional order flow and overall volume tend to slow during the middle portion of the daily trade session. Lacking true dollars to push moves through with conviction, lunch period activity is notorious for whipsawing traders.
Moreover, it's important to understand that there are generally few organized, tradable moves during any given trading session. Some sessions are devoid of real trading moves altogether, while most will offer one to as many as a couple real moves.
Smart traders come to recognize that whether they catch or miss such a move, especially early on, the odds are greatly diminished they'll have another opportunity as the session plays out - the news and events driving the session are generally baked into the early part of trade day. Good traders play the probabilities and are cautious about being drawn into additional trade setups, understanding that most activity will likely be false - nothing more than trading noise.