Order Flow Analysis
Order Flow Analysis glossary · Footprint & Delta Analysis
Definition
A methodology for analyzing real-time trading activity by examining the actual orders being executed in the market — who is buying, who is selling, at what price levels, and with what aggression — to identify institutional activity and predict short-term price direction.
Order Flow Analysis in plain English
Every trade needs a buyer and a seller, but at any instant one side is the eager one — the person who says "I'll take it right now at whatever price is on offer." Order flow analysis is the habit of watching those eager trades as they happen: which side is stepping in hard, at what prices, and how forcefully. The payoff is that the biggest, most patient players (banks, funds) leave footprints when they buy or sell in size, and if you can spot those footprints you get a hint about where price is likely to lurch next. Think of a crowded auction: instead of guessing what a painting will sell for, you're watching who's frantically waving their paddle.
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