Market Order Flow: Analyzing the Market with Order Flow and Footprint Charts

An introduction to the basics of trading systems. The Order Flow analysis system examines buying power and buyers as fundamental components of knowledge that will help you understand true price behavior.

What is Order Flow?

Order Flow, or the flow of buy and sell orders, is the analysis of actual trading volume occurring in the market at each price level. Unlike regular Volume which only shows total volume, Order Flow breaks down exactly how many Buy and Sell orders exist at each price level.

"When you understand Order Flow, you'll see the market from a different perspective. Price tells you everything if you know how to read it."

Seller Order Flow / Seller Dominant

When sellers have more power than buyers, what we call Seller Dominant occurs, meaning selling pressure is dominating the market. This can be identified by:

• Sell volume significantly exceeds Buy volume
• Price begins forming Lower Highs and Lower Lows
• Footprint Chart shows continuous negative Delta (red)
• Large Orders or Institutional Orders are on the Sell side

Buyer Order Flow / Buyer Dominant

Conversely, when buyers have the upper hand, Buyer Dominant occurs and the market tends to move upward. This can be identified by:

• Buy volume exceeds Sell volume
• Price forms Higher Highs and Higher Lows
• Footprint Chart shows continuous positive Delta (green)
• Absorption occurs at key Support levels

Applying Order Flow in Practice

Order Flow is a powerful tool, but it should be used alongside other analysis tools such as Price Action, Supply & Demand Zones, and Market Structure to get the most complete picture of the market.

"Order Flow strategy helps to find sitting buyers and selling orders in the market. Find your entry, take your profit, and protect your capital."

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