hard · Order Flow Analysis
What is the primary diagnostic advantage of using a Volume-based chart over a Time-based chart for order flow analysis?
- They filter out all HFT and algorithmic activity, showing only 'real' institutional money.
- Volume-based charts are time-synchronized, allowing for easier correlation with economic releases.
- Each bar has roughly equal volume, making absorption patterns (high volume, narrow range) much easier to visualize.
- Volume charts use a proprietary formula to predict the future direction of cumulative delta.
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