: A central strategy involves identifying price levels where many stop-loss orders are likely clustered and exploiting the liquidity "vacuum" that occurs when they are hit. Liquidity & Depth
: Unlike Level 2 data, which only shows where people intend to trade (and can be faked), order flow focuses on real-time execution —the trades that actually happened. Key Lessons from the "Order Flow" Story order flow trading for fun and profit pdf 2021
: Markets exist to facilitate trade by finding a balance point between buyers and sellers. Price moves to find liquidity. : A central strategy involves identifying price levels
Delta is the net difference between volume traded at the Ask price (Buys) and volume traded at the Bid price (Sells). Price moves to find liquidity
It requires intense focus and is best suited for day trading or scalping rather than passive investing.
These are aggressive orders executed immediately at the best available price. They consume market liquidity.