Recognizing Strong Order Flow in the Market

Recognizing strong order flow in the market involves identifying imbalances and strong bidding or selling to gauge market direction.

### Recognizing Strong Order Flow in the Market
* 📊 Strong order flow is crucial for identifying **market trends** and **potential trading opportunities**.
* 📈 Strong order flow is not just about **volume**, but how the volume is **distributed and traded**.
* 🔍 Recognizing strong order flow involves looking for **imbalances in the bid and offer sides**, typically at a **4:1 ratio**.
* 📉 Weak order flow is often seen in sideways markets, while **strong order flow** is evident during **trending days**.
* 💰 Strong order flow doesn't necessarily mean **heavy volume**, but rather the **intensity of buying or selling activity**.
* 🔄 In an uptrend, strong order flow includes **aggressive buying** and **strong bidding** to support price levels.
* 🔮 Understanding **strong order flow** can help traders anticipate market movements and make **more informed trading decisions**.

hey everyone, it's Mike from Order Here, and welcome back to my channel. I'm glad you could join me for today's video where I'll be talking about recognizing strong order flow in the market. But before we jump in, if you've been enjoying learning from these videos, don't forget to subscribe and click the notification bell so you don't miss any new uploads. And if you find today's video helpful, be sure to hit the like button for me and leave a comment sharing your biggest takeaway. I love hearing your feedback. Your support really does go a long way in helping me create more videos just like this. So if you're getting value from my channel and want to see more, make sure you subscribe and let's grow together. Now, let's go ahead and get started with today's topic. All right, let's get into it. So, understanding strong order flow, right? I mean there's order flow in the market, you know, always, right? Market trades in a two-way auction. There's a bid, there's an offer, but sometimes there is

just average order flow. Sometimes there's weak order flow, which you would see in, you know, a market that's sort of going sideways, you know, sort of directionless in the market, drifting, you know, maybe the market is waiting for, you know, a Fed speaker Powell to speak or something like that, or there's a data release coming out. But what about during normal trading hours when there is, you know, a trend underway? What are some of the ways that you can recognize it? And one of the ways that you can recognize that is strong order flow. And what does strong order flow look like? Well, think about it. When you know when you're looking at the order flow right on a footprint chart, you see, you know, the volume that was traded on the bid, the volume that was traded on the offer, okay, and you're going to see, um, when there's imbalances in the market, okay. Now, imbalances are when the volume in the bid or the offer, uh, is greater than the other side by a ratio of usually 4:1. Some people like to

use 3:1. I like 4:1. I've always used 4:1 for um, basically forever, as long as I've been trading with a footprint chart, and the black numbers inside the bar are just the normal order flow. So, a red number would be a selling imbalance, a blue number would be a buying imbalance, and the black number is just your normal order flow that's taking place in the two-way auction. Okay, so one of the things that you want to look for on a strong, uh, you know, on a trending day or a day that exhibits strong order flow. Now, let me just preface this: strong order flow doesn't necessarily mean heavy volume. Volume, it's how the volume is coming in and being traded is what you're going to, uh, define as strong order flow. Okay, so, you know, today just recently we made a high up here around 9:30. Uh, we sort of pulled back a bit, but let's take a look at earlier because we opened up during the cast session right near our highs and started making new

highs um you know we got all the way up to 49 99 and a quarter just uh right on the cash open. Then we pulled back okay we pulled back from from 99 and A4 down to 89. So it's about 10-point pullback and then looked like we're going to take off. Then we pulled back more made let's say a swing low but we got down to 88. And then it took off above 5,000 and much higher all the way up to 15 and a quarter here. So um basically we took out this high at 99 a half 99 and a quarter. We Rose another 15 points okay and said right now we're not that far off we're trading around uh 511 right now our high is 15 and a quarter. So we're about four points off that high we'll see what L happens later but what is some of the signs of strong order flow okay so we hit that high we pull back it's

understandable. Okay, we hit a high on the cash open. We pull back. Um, you know, maybe there was some profit-taking, but once it started bottoming out down here between 846 and 8857, right, we're sort of going sideways. You have a nice stacked buying IM balance on the way up, nice stack selling balance on the way down, and then it sort of reverses, and it's off to the races here, right? Basically from 4990 all the way up to, you know, above 5,000. Okay, so, you know, on the first pullback, we had this nice stack buy imbalance, right? It's actually five levels: 1, 2, 3, 4, 5. You know, 52, 66, 76, 244, 388. You know, that's a sign of potentially, you know, hey, you know, there's aggressive buyers coming in on this pullback, which is, you know, something that you want to see on a pullback. You want to see the market if the market is pulling back, and you're going to look for the market to go

higher you're going to want to see some aggressive buyers step in to sort of recognize that hey these prices are attractive. Okay and yeah we go higher you know we get only up to 96 and a half. We got this little double top and then we pull back down below this stack buying a balance below this low that was just made here at 8 and a half. Got down to 88 and then we start our I say start our run up yet but we sort of go up a little bit and then pull back and then take off but after we hit 96 and a half we start coming off. Okay we got a stack selling a balance now the volumes involved in the selling balance even though it's a stack sound balance what are the volumes 67 against two 72 against 1 128 against one. Okay it is technically a stack sell and a balance because it's three imbalance a stack neatly on top of each other but would I consider this a strong selling imbalance well not really.

because the volumes in here are kind of light. Okay, at least here, yeah, you had 52, 66, 76, but up here is 244, 388. Here the biggest one is just 128. Now, if this 285 was an imbalance in 344, I'd probably look at it a little bit differently, but it wasn't. Okay, so Market sells off a little bit, gets a little bit of a push, pulls back up towards this um, Step back, selling a balance, then comes off, and then it starts taking off. Now, what is interesting on this move up towards this High here, okay, so again, buying it here early on this uh, first deck, buying a balance again, not necessarily a bad idea, you know, but you know, when you see that stack sell of balance come in, yeah, maybe it's time to you just cut it. I, I not sure I'd be looking to uh, all of a sudden get short and look for a move down to the low yet, 'cause it just the intensity of that imbalance stacked.

imbalance is just not enough for me. I like it to be a bit stronger in terms of volume, and then the market just goes sideways. Then it starts reasserting itself. Here the aggressive buying. How do I know the aggressive buying is reasserting itself? Well, just by looking at the Deltas: 400, 900, 700. Okay, so I know it's pretty strong or it's getting stronger even though this bar has got 137. The 406, 982, 780 is strong. Here we got a decent stack buying balance: 263, 99, 140. People going to say, Well, it's only 99, it's not 100. Okay, it's one contract less than 100. I would take that as being pretty strong. So they're all above three digits, but again, maybe not convinced yet. Okay, we got a nice stack, sorry, got a nice stack buying imbalance in this bar. Got a nice Delta in this bar: 982. Got a nice Delta in the volume of 34%. So it's telling you the Delta as a

percentage of the volume is 34%. Which is a nice strong that's why it's colored cyan. You got this imbalance up here. Okay, so it's telling you that, you know, it's 145 against 12. Yeah, there was some bidding taking place in the market. Okay, then what happens in the next bar, it starts trading a little bit higher and Delta's 137. It's not super strong but we're closing on our Max Delta. Okay, then this next bar, we got two buying imbalances. They're not stacked on top of each other. You know when you're looking at imbalances, it's easy to see stacked imbalances, right, whether stacked buying imbalances or stack selling imbalances, simply because they're stacked neatly on top of each other. But when you start running into bars that have multiple imbalances, two or more, to me, that's also an important sign, right, it's telling you that there's aggressive binds just not coming in Bunch sort of, you know, a couple prices right.

being spread out then the next bar. Same thing, two buying imbalances. Now to me, what really stood out in these bars again, our high for the day is 99 and a quarter. We're trading about four points off here at, you know, at 95. But even earlier here, okay, volume in this bar honestly is pretty evenly distributed, right? You got a Delta of 137. So this is telling you aggressive buyers were slightly in control. But look at this bar here, okay? What do you got? You got a very strong positive Delta, 780. So, you know, aggressive buyers are in control, aggressive buyers are in control, and they're pretty strong. Then when you sort of expand it out a little bit, take a closer look in sect the volumes, you can see there's heavy volumes also on the bid side. And what's interesting is, you know, 406 is your heaviest volume on the bid side in this bar or actually the heaviest volume either on the bid or or you got 49 here, but it's the second-highest volume.

406, 'cause imagine, right, it's 780 Delta. You're going to be thinking that the volumes are going to be kind of thin on the bid side. Just like here, 982, the volume, right, the heaviest volume is only 277. Next one's only 151. But on the offer side, it's pretty consistent: 193, 358, 299. But over here, you're getting strong volume up near the top of the bars: the 305, the 406, 224, 317. So it's happening. Market's getting bid up. You know, people are lifting the offers, but then it's becoming bid here at higher prices for a heavier volume. Then in the next bar, it's kind of a small bar again, Delta of 149, still positive. Two buying imbalances. This one, where's the heaviest volume? It's on the bid side, 58, three. Next bar again, two buying imbalances. Where's the heaviest volume coming in? It's on the bid side, 799. So I know I just by looking at the volumes over several bars, one, two, three. Well, these two bars at a minimum, the

heaviest volume is on the bid side. Still got positive Delta, so it's telling me that there are strong bids in the market here. And then next bar, again, nice positive Delta 401. Just one imbalance. Then the next bar, we pop up above 5,000. You got nice stacked buying imbalance in there. And look at this, heaviest volume taking place in this bar is where, right here, 51 spot 5 1415. The heaviest volume is on the bid side. So I know there were bidders coming in here at 1 and a half, bidders coming in here at 98, bidders coming in at um 972, even here 952. I know there's strong bidding taking place in the market. And that's why I talk about strong flow. That is a sign of what strong flow is, right? It's not just aggressive buying taking place in the market, right? Because yeah, you need that, right? That's what's going to move the market higher, people lifting the offer and going for the next offer. But what's holding the market from going

down is people bidding and bidding strong volumes right. It doesn't necessarily have to be the heaviest volume in the bar, but it should be relative to the volume in the bar, right? Even though this um, you know, 406 isn't the heaviest volume, it's the second heaviest volume to the 489 up here, right? Here's your heaviest volume, 583 against 541 up here, 799 against only 571. You know, 794 is not your heaviest. The heaviest was 890, but it's still a very strong number. It's not 294, it's 794. Obviously up here is 1415 versus heaviest volume is what, 1073. So, you know, right, that you're seeing strong bids in the market. And often times, these strong bids are going to be, you know, those long-term Traders, the other time frame Traders. What's interesting about this 1415 coming in here is it's coming in at new high levels. If it's coming in at new high levels, do you think those are um

intraday Traders. No, it's probably other time frame Traders, you know, people with the Deep Pockets, thinking, you know, I got to get in, I got to lock in a position on this because we're probably going higher, right? And we got all the way up, we moved all the way up, you know, to here, to 15 and a quarter, starting to come off a little bit right now. Again, we're still trading around 08, but we'll see. I mean, in the grand scheme of things, I mean, obviously 5,000 is a big psychological level in the snps. Um, you know, chances are, I think, again, it's an election year. It benefits, uh, the current Administration to keep the market, uh, propped up. I don't know. I, I Le read a lot of bearish information in the market, um, in terms of data with consumer spending and all that stuff. Um, you know, we, we'll see what happens with this Market eventually, but but for right now recognizing strong order flow, you're watching how the volume is being distributed throughout.

the bar okay. As the market is going up, same thing you what I just said. If you were to turn it on his head, 180 degrees, that would be um the same thing would apply if the market were selling off again. You know, I can't talk about a market selling off 'cause we're at uh highs up here um, but anyway, I hope you guys, you know, understand how recognize strong order flow. It's not just the aggressive buying. You need strong um bidding on a market moving up. If the market was moving down, you would need obviously aggressive selling, which would be evident through uh selling imbalances, stack selling, AB balances, negative Delta, but then you're going to want to see Supply coming into the market in the form of big offers to keep the market from going up okay. So all right guys, so if that wraps up today's video on strong volume or strong order flow rather, so if you found these tips today helpful for your understanding of order flow, let me know what you'd like to discuss next by leaving a comment down.

below. If you enjoyed this video, make sure to hit that like button and subscribe to my channel so you don't miss any more of my upcoming videos. All right, so thanks so much for watching and I'll catch you guys on the next video. Bye-bye.

Strong Order Flow Trading Strategy Using Orderflows Trader For NinjaTrader 8

Orderflows

Recognizing strong order flow is essential during normal trading hours to identify market trends.

Strong order flow is characterized by imbalances in the volume traded on the bid and the offer, with a ratio of usually 4:1, indicating a trending day.

It's important to note that strong order flow is not solely determined by heavy volume, but by how the volume is being traded.

Fluctuating Market Trends and Order Flow Signals

25 before experiencing a 10-point pullback, followed by a surge to over 5000.

There were strong order flow signals, with a stacked buying imbalance during the pullback indicating aggressive buyers stepping in.

Despite a stack selling imbalance, the volumes were not high, suggesting a not very strong selling imbalance.

Analyzing Market Behavior through Volume and Imbalance

The market shows a mix of buying and selling imbalances, with a focus on the strength of volume and Delta values.

Stacked buying imbalances indicate aggressive buying, while multiple imbalances in a single bar also signal significant market activity.

The analysis emphasizes the importance of observing the intensity and stacking of imbalances as indicators of market behavior.

Analysis of Market Trends Based on Volume and Delta

The speaker observes a series of bars in the market, noting the distribution of volume and Delta values to identify buyer control.

They specifically highlight the strong bidding and buying imbalances on the bid side, indicating a significant presence of aggressive buyers.

The analysis emphasizes the importance of strong bidding as a sign of strong market flow, in addition to aggressive buying, in driving the market higher.

Analyzing Strong Bidding Volumes in the Market

Strong bidding volumes indicate activity from long-term and other timeframe traders, especially when occurring at new high levels.

The market's current administration may have a vested interest in maintaining the market's strength, despite bearish information on consumer spending.

Recognizing and monitoring the distribution of volume is crucial in understanding the strong order flow in the market.

Understanding Strong Order Flow in the Market

Recognizing strong order flow is essential, whether the market is going up or selling off.

It's not just about aggressive buying, but also about strong bidding in a rising market and aggressive selling in a falling market.

The presence of supply in the form of big offers is crucial to prevent the market from rising.