Order flow is a footprint chart showing only the real-time market order executed trades to study the

momentum and strength of the aggressive buyers and aggressive sellers. If the market buy order is hit,
then the OFA is printed on the buy-side where the seller had a limit order and if the market sell order is
hit, then the OFA is printed on the sell-side where the buyer had limit order.

Please note, a limit order during the execution will get converted into a market order when the price
reaches the limit level. For example, if the price of XYZ is 100, if you keep a Limit Sell order at 105 when
the price reaches 105, then this limit order will be converted into a market order, and it will be released
into the system. An order flow chart will include all the executed market orders.

Image: A typical Order flow chart

A standard order flowchart is shown in the above picture. One can add/delete/amend any features of
the order flow using the ‘Totals’ option. Besides, you can also add volume profile or volume histogram
using the same choice.

Session Letter – If you recall a market profile chart, it will allocate a TPO for every 30 minutes. In the
above chart, we are viewing 30-minute timeframe order flow chart. Hence every column denotes one
session. If you see the 15-minute chart, then you will get two vertical columns for one session.

Ask – It shows the total ‘Ask’ quantity for the selected time across the price range. If you view 15-minute
order flow chart, then it shows the total ask quantities executed at market rates in that 15-minute
window across the price range.

Bid – It shows the total ‘Bid’ quantity executed at market rates for the selected time across the price
range. If you view 15-minute order flow chart, then it shows the total bid quantities in that 15-minute
window across the price range.

Delta– It is the net difference between the Ask and Bid in that respective time window. It is calculated by
subtracting the market order volumes transacted at the bid price from the market order volumes
transacted at the ask price.

Order flow is a footprint chart showing only the real-time market order executed trades to
study the momentum and strength of the aggressive buyers and aggressive sellers. If the
market buy order is hit, then the OFA is printed on the buy-side where the seller had a limit
order and if the market sell order is hit, then the OFA is printed on the sell-side where the
buyer had limit order.

Please note, a limit order during the execution will get converted into a market order when
the price reaches the limit level. For example, if the price of XYZ is 100, if you keep a Limit
Sell order at 105 when the price reaches 105, then this limit order will be converted into a
market order, and it will be released into the system. An order flow chart will include all the
executed market orders.

Image: A typical Order flow chart

A standard order flowchart is shown in the above picture. One can add/delete/amend any
features of the order flow using the ‘Totals’ option. Besides, you can also add volume profile
or volume histogram using the same choice.

Session Letter – If you recall a market profile chart, it will allocate a TPO for every 30
minutes. In the above chart, we are viewing 30-minute timeframe order flow chart. Hence
every column denotes one session. If you see the 15-minute chart, then you will get two
vertical columns for one session.

Ask – It shows the total ‘Ask’ quantity for the selected time across the price range. If you
view 15-minute order flow chart, then it shows the total ask quantities executed at market
rates in that 15-minute window across the price range.

Bid – It shows the total ‘Bid’ quantity executed at market rates for the selected time across
the price range. If you view 15-minute order flow chart, then it shows the total bid quantities
in that 15-minute window across the price range.
Delta– It is the net difference between the Ask and Bid in that respective time window. It is
calculated by subtracting the market order volumes transacted at the bid price from the
market order volumes transacted at the ask price.

Cumulative Delta – In this case, the ‘Delta’ of every selected timeframe is added to the
current window, and it will be displayed. It is the total volume of market orders traded till
that time.

It provides the broader dimension of the delta as it spans over the entire day. So,
irrespective of your timeframe, the software totals the entire delta across the total time
interval and displays a running total. When cumulative delta is positive, it reflects the
aggressive buyer’s strength over the course of the session. When cumulative delta is
negative, it indicates the aggressive seller’s strength over the course of the session.
Cumulative delta should never be studied in isolation. Up move in price with an increase in
Cumulative delta’s positiveness indicate upmove supported by aggressive buyers. Thus you
can believe the uptrend. However, a fall in Cumulative delta with upmove in price indicates
long liquidation or profit booking. Similarly, if prices fall with increasing negative cumulative
delta, that indicates a fall in prices supported by aggressive sellers. However, if market prices
fall without an increase in negative cumulative delta, it indicates short-covering and profit-
booking by bears.

Cumulative Delta/Volume– In this case, cumulative Delta is represented as a percentage of

Volume – It shows the total volume for the selected period.

Cumulative Volume – In this case, the volume of every period is added to the current
window, and it will be displayed.
Image - 30-minute bar in an order flow chart

The above picture shows the order flow chart for the last 30-minute timeframe. In this case,
the price range is from 27490 to 27525.

If a market buy order is hit, then the OFA is printed on the buy-side where the seller had a
limit order, and if a market sell order is hit, then the OFA is printed on the sell-side where
the buyer had limit order.

On the left side, you can see all the executed ‘Sell’ orders at different price levels. Similarly,
on the right side, you can see all the executed ‘Buy’ orders. The price has seen the close
below 27490 which indicates sellers were active in this time frame.

It can also be seen on the chart. In this case, sell orders are more (even at first look) and a
negative delta of 9440 and -5.2% cumulative delta indicates sellers are in precise control
with the clear fall in price action.

Delta Divergence occurs when prices are moving up, but Delta is coming down or vice
versa. It is similar to the RSI divergence concept. If prices are going up and Delta reducing, it
is an early indication of exhaustion of uptrend and reversal can happen anytime. Similarly, if
prices are falling and Delta is decreasing, it is the first indication of exhaustion of
downtrend, and reversal can happen anytime. By catching divergent moves, you can avoid
getting trapped by a false move.
A word of caution - Use Orderflow as a confirmation tool, but don’t use this to initiate
a new trade!

I hope this detailed explanation helps!

It provides the broader dimension of the delta as it spans over the entire day. So, irrespective of your
timeframe, the software totals the entire delta across the total time interval and displays a running total.
When cumulative delta is positive, it reflects the aggressive buyer’s strength over the course of the
session. When cumulative delta is negative, it indicates the aggressive seller’s strength over the course
of the session. Cumulative delta should never be studied in isolation. Up move in price with an increase
in Cumulative delta’s positiveness indicate upmove supported by aggressive buyers. Thus you can
believe the uptrend. However, a fall in Cumulative delta with upmove in price indicates long liquidation
or profit booking. Similarly, if prices fall with increasing negative cumulative delta, that indicates a fall in
prices supported by aggressive sellers. However, if market prices fall without an increase in negative
cumulative delta, it indicates short-covering and profit-booking by bears.

Cumulative Delta/Volume– In this case, cumulative Delta is represented as a percentage of total

Volume – It shows the total volume for the selected period.

Cumulative Volume – In this case, the volume of every period is added to the current window, and it will
be displayed.

Image – 30-minute bar in an order flow chart

The above picture shows the order flow chart for the last 30-minute timeframe. In this case, the price
range is from 27490 to 27525.

If a market buy order is hit, then the OFA is printed on the buy-side where the seller had a limit order,
and if a market sell order is hit, then the OFA is printed on the sell-side where the buyer had limit order.
On the left side, you can see all the executed ‘Sell’ orders at different price levels. Similarly, on the right
side, you can see all the executed ‘Buy’ orders. The price has seen the close below 27490 which
indicates sellers were active in this time frame.

It can also be seen on the chart. In this case, sell orders are more (even at first look) and a negative delta
of 9440 and -5.2% cumulative delta indicates sellers are in precise control with the clear fall in price
action.

Delta Divergence occurs when prices are moving up, but Delta is coming down or vice versa. It is similar
to the RSI divergence concept. If prices are going up and Delta reducing, it is an early indication of
exhaustion of uptrend and reversal can happen anytime. Similarly, if prices are falling and Delta is
decreasing, it is the first indication of exhaustion of downtrend, and reversal can happen anytime. By
catching divergent moves, you can avoid getting trapped by a false move.

A word of caution - Use Orderflow as a confirmation tool, but don’t use this to initiate a new trade!

I hope this detailed explanation helps!