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

Institutional Traders:

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 reverse

Volume Profile

Shows volume at each price level:

Point of Control (POC): Highest volume price Value Area: 70% of volume HVN/LVN: High/Low Volume Nodes

Auction 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