medium · Order Flow Analysis order-book-dom

When comparing different chart types, what is a unique advantage of using a 'Volume-Based Chart' for order flow analysis?

1. Every bar contains roughly the same amount of volume, making delta comparisons more consistent.
2. It ensures that each bar closes after a fixed number of minutes, like five or fifteen minutes.
3. It completely eliminates any need to look at the bid or ask volume within the bar.
4. It automatically detects and flags large institutional iceberg orders resting within the order book.

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