Order Flow

Order flow analysis examines the actual transactions occurring in the market, including the volume, direction, and aggressiveness of orders. It provides insights into supply and demand dynamics that drive price movements. Tools like footprint charts, volume profile, and DOM (Depth of Market) help visualize order flow. Large institutional orders often leave footprints that skilled traders can identify. Order flow differs from technical analysis by focusing on actual transactions rather than historical patterns. Understanding order flow helps traders identify where large players are positioned and potential turning points.