Been trading for a while but keep hearing about order flow analysis and honestly have no clue what it means.
Seen some traders swear by it but all the explanations I find are way too technical. Just want to understand the basics of what I’m missing here.
Order flow tracks who’s buying and selling at different price levels in real time.
Charts show where price went - order flow shows the battle behind those moves. You see if buyers are getting aggressive at support or sellers piling in at resistance.
Started using it 3 years ago through my broker’s DOM tool. Complete game changer for timing entries. Instead of guessing if a breakout’s real, you actually see the buying pressure building.
Basic concept: watch the order book. See how many buy/sell orders stack up at each price. Spot imbalances? That’s usually where price heads next.
Most retail platforms don’t show true order flow since we’re not on the actual exchange. But some brokers offer footprint charts or volume delta tools that give you a taste.
It shows where buyers and sellers are active.
Order flow reveals who’s buying and selling at various prices. It helps you see which side is stronger at that moment.