5 Mistakes When Using Order Flow (OF)
It's 10:15 AM ET. Your algorithm has already executed two trades based on order flow signals. Meanwhile, other traders are still trying to interpret the...
It's 10:15 AM ET. Your algorithm has already executed two trades based on order flow signals. Meanwhile, other traders are still trying to interpret the messy volume bars on their charts. The difference? You're not just watching price action—you're seeing the battle between buyers and sellers in real time. Key fact: Delta is the difference between aggressive buying (Ask) and aggressive selling (Bid) at each price level. Positive delta indicates buyer dominance and negative delta indicates selling pressure. (Source: Footprint Order Flow Indicator in NinjaTrader Guide) Delta is the difference between aggressive buying (Ask) and aggressive selling (Bid) at each price level. It reveals whether buyers or sellers are dominating the market at specific price points. Many traders mistakenly treat delta as a simple oscillator that tells them when to enter trades, rather than understanding its true meaning. Key fact: Reviewing delta changes helps the trader detect the strength or weakness of a price move before continuation or reversal. (Source: Footprint Order Flow Indicator in NinjaTrader Guide) In futures markets, delta provides critical insight into who is in control.