KNOWLEDGE / ORDER FLOW

Order Flow

CVD, Footprint, aggression of buyers and sellers and absorption.

06articles

Order Flow4 min read

Order Flow From scratch: what happens under the candle

The candle shows the result of the transaction at a given time, but does not directly show who initiated the trade and where the liquidity was located. Order flow tries to describe this layer of process using a transaction and ordersheet. Aggressive buyer takes the available ask offer and aggressive seller hits the bid. If a large aggression does not move prices, absorption may occur; if a small...

First, define the context and horizon of the analysis.
Confirm your applications with independent data layers.
Take into account the quality of feed, spread and real cost of execution.

Order Flow4 min read

CVD — what shows and why it may differ from the price

Cumulative Volume Delta accumulates the difference between aggressive buying and selling. This shows which page initiates transactions more often, but does not say in itself whether this aggression effectively moves the price. The price can rise at a weak CVDif the supply is thin or stand still with a strong positive CVDIf a big seller absorbs buyers, the discrepancy is...

First, define the context and horizon of the analysis.
Confirm your applications with independent data layers.
Take into account the quality of feed, spread and real cost of execution.

Order Flow4 min read

Absorption: When aggressive buyers can't raise the price

Absorption occurs when a large influx of aggressive orders encounters sufficient fluidity on the other side, making the price shift less than the scale of aggression would suggest. This is a diagnostic signal with hidden passive strength of the side. With positive delta resistance without progress, the price may suggest supply, and with the support of strong sales aggression without further decline may indicate demand....

First, define the context and horizon of the analysis.
Confirm your applications with independent data layers.
Take into account the quality of feed, spread and real cost of execution.

Order Flow4 min read

Delta Footprint — How to Read the Advantage of Buyers and Sellers

The Footprint spreads the volume inside the candle into price levels and shows where aggressive transactions were concentrated. Delta helps to see the imbalance, but does not say whether this imbalance has been accepted by the market. Especially interesting are clusters with extremes, stacked impalances and situations where a very large delta does not cause continuation. It is a place where you can...

First, define the context and horizon of the analysis.
Confirm your applications with independent data layers.
Take into account the quality of feed, spread and real cost of execution.

Order Flow4 min read

Whale Walls and big orders — a signal or a trap?

A large wall in the order book attracts attention because it suggests a considerable liquidity on one side. The problem is that the waiting order is not a transaction and can disappear a second before contacting the price. The importance of the wall grows if it remains stable when approaching the price, it is partially realized and after it is touched there is a clear reaction. The size itself is without the time of life and...

First, define the context and horizon of the analysis.
Confirm your applications with independent data layers.
Take into account the quality of feed, spread and real cost of execution.

Order Flow4 min read

Transaction rate and tape: what the acceleration of aggression says

Order flow is not only the direction of the delta. The pace of subsequent transactions, the size of aggressive orders and the speed at which the market consumes liquidity, can show a change in behaviour before it becomes obvious on a closed candle. Acceleration of the tape is of greatest importance at an important level. If aggressive buying quickly takes the ace and the price moves with it, demand has an effect...

First, define the context and horizon of the analysis.
Confirm your applications with independent data layers.
Take into account the quality of feed, spread and real cost of execution.