Order Flow Overview:

Order Flow is an advanced charting tool that allows traders to view and analyze the actual trading orders being processed in the market. This tool is essential for tracking the activities of large financial institutions by analyzing the trades they execute.

Understanding Order Flow can be overwhelming at first, due to the volume of information displayed. This guide aims to simplify the process, enabling you to effectively incorporate Order Flow into your trading strategy.

Key Concepts of Order Flow:

1. Footprints:

• Footprints in Order Flow charts differ from traditional candlestick charts. They not only display the Open, High, Low, and Close (OHLC) but also the actual orders traded within each candle.
• Bid and Ask:
  • When a buyer executes a market order to go long, it appears on the Ask side of the footprint.
  • Conversely, when a seller executes a market order to go short, it appears on the Bid side.

2. Green/Red Cells:

• Each footprint contains cells that are colored green or red.
  • A Green Cell indicates that the number of trades on the Ask side exceeds those on the Bid side, showing stronger buying pressure.
  • A Red Cell signifies that the number of trades on the Bid side is greater than on the Ask side, indicating stronger selling pressure.

3. High Volume Nodes:

• A High Volume Node represents the price level within a footprint where the most volume has been traded. These nodes are highlighted with a black outline, making them easily identifiable.
• When consecutive footprints have High Volume Nodes at the same price level, these are marked in yellow, highlighting important support or resistance zones.

4. Delta:

• The Delta value is displayed below each footprint, indicating the net difference between trades executed on the Bid versus the Ask.
  • A Positive Delta (Green) occurs when more trades are executed on the Ask side, signaling stronger buyer activity.
  • A Negative Delta (Red) appears when more trades are executed on the Bid side, indicating stronger seller activity.

5. Footprint Summary:

• The panel at the bottom of the Order Flow chart summarizes key metrics for each footprint.
  • Commonly used metrics include Delta, Cumulative Delta, and Volume:
    • Delta indicates the strength of buyers versus sellers.
    • Cumulative Delta tracks changes in delta throughout the trading day.
    • Volume reflects the total number of trades executed within each footprint.

6. Volume Profile:

• The Order Flow software typically includes a Daily Volume Profile that shows how trading volume is distributed across different price levels throughout the day.
  • The Blueish/Green areas on the Volume Profile represent orders executed on the Ask side (Market Buy orders).
  • The Red areas represent orders executed on the Bid side (Market Sell orders). and it is available two trading software's-- Trading -Sirap----- good to go for day traders