Overview
Order flow analysis studies executed trading activity and how price responds to it. It can add context beyond candle direction alone.
Footprint charts display traded volume at individual price levels, often separated into aggressive buying and selling. Delta is commonly calculated as aggressive buy volume minus aggressive sell volume.
Absorption and exhaustion
Absorption describes aggressive orders being met by opposing liquidity without proportional price movement. Exhaustion describes reduced participation near the end of a move. Both require context and confirmation.
What data is required?
True bid/ask footprint analysis requires trade-level data and a reliable aggressor-side classification. Ordinary OHLCV candles cannot reproduce historical bid/ask executions accurately.
Educational content only. Nothing on this page is personalized financial advice or a prediction of future market prices.