📍 Core Concept

Order Flow

Reading the tape and understanding buyer/seller aggression.

APOLLO ENCYCLOPEDIA

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What It Is

Order flow analysis examines the actual buying and selling activity at specific price levels in real-time. It goes beyond chart patterns to show you who is in control — are aggressive buyers lifting offers, or are sellers hitting bids?

Key insight: Every chart pattern, every candlestick, and every indicator is a derivative of order flow. Order flow is the raw data. When you see a hammer candle, order flow shows you the actual aggressive buying that created it. This is as close to the 'why' of price movement as you can get.

In crypto, order flow tools include the order book (Level 2), time and sales (tape reading), footprint charts, and heatmaps showing where limit orders sit. Each reveals a different aspect of how liquidity and aggression interact.

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Reading Order Flow

Absorption

Large sell orders being filled without price dropping indicates strong buyers absorbing the supply. This is bullish — someone with deep pockets wants price at this level. The reverse (large buys being absorbed) is bearish.

Aggressive vs. passive orders

Market orders are aggressive (they cross the spread to execute). Limit orders are passive (they wait at a price). When aggressive buyers overwhelm passive sellers, price moves up. Track the balance.

Strategy 3

Order flow is an advanced skill that takes months to develop. Start by watching the tape at key support/resistance levels during high-volume periods. Look for abnormal activity that confirms or denies what the chart is telling you.

💡Pro Tip

Apply this concept in combination with others. No single concept tells the whole story - confluence is key.

Master Order Flow

The Academy teaches this concept through structured lessons with real chart examples.

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