medium · Order Flow Analysis footprint-delta
What is the primary diagnostic advantage of using a Volume-based chart over a Time-based chart for order flow analysis?
- They strip out essentially all HFT and algorithmic flow, leaving only genuine institutional activity.
- Volume bars stay synchronized to the clock, making correlation with scheduled economic releases much easier.
- Each bar has roughly equal volume, making absorption patterns (high volume, narrow range) much easier to visualize.
- Volume-based charts run a proprietary formula that forecasts the future direction of cumulative delta on any traded instrument.
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