CVD · L2 · ABSORPTION · LIQUIDITY
Order Flow without myths
Order flow does not predict the future. It helps you inspect how aggressive orders interact with liquidity and whether price movement is supported by flow.
Candles show the result. Order flow describes parts of the process behind it. The common mistake is reading a single metric without structure, spread and feed quality.
01
The order book is intent, not a trade
Resting orders can disappear. A wall is evidence of visible liquidity, not a guarantee.
- Watch whether liquidity remains as price approaches.
- Compare resting size with actual trades.
- Account for spoofing and cancellations.
02
CVD measures aggressive imbalance
Cumulative Volume Delta compares aggressive buying and selling.
- Price up with weak CVD can be fragile.
- Improving delta is not an automatic bottom.
- Use a relevant execution venue.
03
Absorption: flow without proportional price movement
Large aggression with limited price progress can indicate the other side is absorbing.
- Look near meaningful structure.
- Confirm with subsequent price reaction.
- Absorption is not instant reversal.
04
Flow is one layer
HOSTuvo combines flow with price, microstructure, derivatives, context and cost.
- Flow can confirm or contradict structure.
- Missing data is not zero.
- The execution gate remains separate.
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