If you are looking for a guide on how to approach order flow trading for fun and profit, this article breaks down the core mechanics you need to understand. What is Order Flow Trading?
: A visual representation of how much volume was traded at specific price levels over a period, rather than just over time.
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At its core, order flow is like the heartbeat of the market—invisible but essential. It offers a perspective that traditional charts and indicators simply cannot provide.
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To get started with order flow trading, traders will need access to a few key tools:
A footprint chart displays the buy and sell volume transacted at each individual price level within a bar. Instead of just showing open, high, low, and close, it reveals who was more aggressive—buyers or sellers—at every price tick. AI responses may include mistakes
A footprint chart looks like a standard candlestick but contains data blocks inside each bar. It breaks down the volume traded at every price level within that candle. Typically, it displays the volume executed at the bid on the left and the volume executed at the ask on the right. This allows you to see exactly where heavy buying or selling occurred. 2. Market Depth (DOM)
Price cannot move higher unless passive limit orders are removed or consumed. Absorption occurs when aggressive buyers market-buy heavily into a major resistance level, but the price refuses to move up because a passive seller is absorbing all the volume.