What is order flow?

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David Knight
Answered 9 months, 3 weeks ago
<p>Order flow Analysis is a technique used to anticipate changes in price in the market by observing the flow of constantly changing orders of various sizes (liquidity) and the aggressive trades (transactions) to view their impact on the market price. This analysis allows the trader to observe the balance between different market players as they bull and sell, and is the fundamental building block of market mechanics.&nbsp;</p>
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Johnnie Chambers
Answered 1 week, 3 days ago
<p id="isPasted">Order flow is the study of real-time buy and sell orders to understand market dynamics and predict price movements. Instead of relying on lagging indicators, order flow analysis tracks the volume and speed of trades to reveal market sentiment, showing who is trading, how much size they are using, and at what price levels. Key tools for this analysis include volume profile, Time &amp; Sales data, and market depth (Level 2). &nbsp;</p><p><br></p>