Trading with OrderFlow is one often a misunderstood concept in markets. In this thread, we’ll break down: - What OrderFlow actually is (and isn’t) - The 4 primary tools used - And how you can use them to better understand market activity Let’s start with the basics 🧵

What is OrderFlow? OrderFlow is simply the flow of buy and sell orders through the market. Buyers and sellers interacting = transactions. Those transactions = price movement. Studying OrderFlow means using tools that let you observe those interactions in real-time.

The 4 primary OrderFlow tools: DOM (Depth of Market) Time and Sales Footprint Charts Volume Profile These are the only tools that actually show you the behavior of buyers and sellers as it happens.

The DOM is the order book. This is where you see: Resting liquidity (bids/offers) Orders being added or pulled Shifts in supply/demand in real-time If someone places 500 contracts on the offer, it instantly shows up here. This is the most real-time view of orderflow.

Time and Sales Think of this as your receipt at CVS — every trade that actually happens is printed here. While the DOM shows resting orders, T&S shows executed orders. If someone hits the bid or lifts the offer, it shows up here immediately.

A Footprint takes a candlestick and injects the Time and Sales data into it. Now you can see how much traded at each price within each candle. This helps you analyze past orderflow in a structured format — for example, seeing absorption zones.

Volume Profile This plots how much volume occurred at each price. It shows you where traders were most and least interested in doing business — which is incredibly useful both in real-time and historically. This is the landscape of participation.

You can also break this down further using Delta Profiles — measuring buying vs selling at each price to analyze: Absorption Aggressive initiative buying/selling Reversals at key spots

I've written more about using delta profiles and footprint charts for absorption.

Misconceptions about OrderFlow ⚠️ “I can see OrderFlow in candlesticks.” Not really. Price candles show where price moved — not how it got there. Only with these tools can you actually observe real buyer/seller activity.

So, is OrderFlow complicated? OrderFlow is just a lens that lets you see the market clearly. It’s not about watching every tick — it's about understanding key moments where: Buyers get aggressive Sellers absorb Liquidity shifts Momentum shifts & using that info for execution.

Is OrderFlow the holy grail? Nope. No such thing. But it does give you clarity and confidence — especially when combined with: Price action Auction theory Contextual analysis OrderFlow is just a piece of the puzzle — but it's one that brings the picture into focus 🔍

Well will dig into more nuances and ideas on how to use orderflow data for trade ideas in future threads.

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