Order Flow

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Order flow analysis studies the stream of buy and sell orders hitting the market to determine whether buyers or sellers are in control and where price is likely to move next. Reading order flow through the tape, Level 2 quotes, and time-and-sales data gives active traders an informational edge that traditional chart patterns alone cannot provide. Understanding order flow dynamics helps traders time entries more precisely, avoid getting trapped in false breakouts, and identify when large institutional orders are being executed.