Order Flow

Reading the Orderbook: Flow Analysis

7 min readTrading Reference Guide

What is Orderbook?

Orderbook = Real-time list of all buy and sell orders at different prices. Shows the "order flow" - who is buying/selling and at what prices.

Orderbook - Bullish ImbalanceASKS (Sell)100@ 2.50275@ 2.50150@ 2.500Total: 225BIDS (Buy)1500@ 2.4991200@ 2.498900@ 2.497Total: 3600Imbalance Ratio: 3600 / 225 = 16:1✓ STRONG BID IMBALANCE✓ More buyers than sellers✓ Price likely rises (BUY signal)

Orderbook Signals

Bullish Imbalance: Large bids, small asks = more buyers than sellers = price likely rises