Advanced Order Flow Trading
Order flow analysis reveals what is actually happening in the market beyond price.
Understanding Order Flow
Market Participants
Retail Traders:- Small orders
- Predictable behavior
- Often liquidity providers
- Large orders
- Need to hide intent
- Move markets
Volume Analysis
Volume Price Analysis (VPA)
High Volume + Price Up = Accumulation High Volume + Price Down = Distribution High Volume + No Move = Absorption Low Volume Move = Weak move, likely to reverseVolume Profile
Shows volume at each price level:
Point of Control (POC): Highest volume price Value Area: 70% of volume HVN/LVN: High/Low Volume NodesAuction Market Theory
Market Balance
- Range-bound trading
- Building value area
- Breakout coming
Market Imbalance
- Trending market
- One side in control
- Trade with the flow
DOM and Tape Reading
Depth of Market
- See pending orders
- Identify large players
- Spot absorption
Time and Sales
- Actual executed trades
- Size of trades
- Market or limit orders
Footprint Charts
Advanced volume visualization:
- Bid/Ask imbalance
- Delta (buying vs selling)
- Cumulative delta divergence
Practical Application
- Identify high volume nodes
- Watch for absorption at levels
- Trade breakouts with volume confirmation
- Use delta for entry timing
Lesson Discussion