The Role of Order Flow Imbalance in Predicting Reversals
Order flow imbalance compares aggressive buying with aggressive selling. This article explains why changes in that balance, not the buy/sell ratio alone, often show up before a reversal.
Articles tagged "Order Flow"
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What Is a MEV Sandwich Attack? What It Really Costs
A MEV sandwich attack extracts measurable value from DeFi trades by exploiting transaction ordering and the slippage tolerance you set before confirming.
How Exchange Deposit Flows Predict Price Direction Before Candles Form
Exchange deposit flows often precede price moves by minutes to hours, because moving coins to an exchange is a structural prerequisite for selling, while candles only register the trade itself.
How Exchange Infrastructure Shapes Price Discovery
Matching engine design, order routing, and API latency all shape how quickly and accurately a price forms - and why identical assets briefly diverge across venues.
How Order Book Depth Predicts Price Direction
Order book depth reveals where liquidity is stacked, and price tends to move toward the side with less resistance. This article breaks down how to read that imbalance without over-relying on it.
What Happens When a Crypto Exchange Goes Down
What happens when a crypto exchange goes down? Price doesn't freeze - it splits across venues. Here's the mechanical chain reaction every major outage sets off.
How MEV Affects Price Discovery in DeFi
How MEV affects price discovery in DeFi: block ordering and priority gas auctions set the clearing price before supply and demand ever reach the pool.
How a Crypto Order Book Works
How a crypto order book works: bids, asks, and the matching engine that turns resting orders into price - and why book depth decides how far a trade moves.
Why Support Breaks Follow Large Candles
Large candles exhaust the buyers defending a support level before price even touches it. When support finally gets tested, there's nothing left to hold it.
How Market Makers Distinguish Signal from Noise
Market makers don't react to price - they classify order flow as informed or uninformed. That distinction drives every quote, hedge, and withdrawal decision.
About this tag
Order flow is the live sequence of buy and sell orders hitting the market, and it is the mechanism every price change actually runs through. Not sentiment, not headlines, not chart patterns - those things change what participants intend to do, but price moves when the orders land. The distinction that matters is aggression. Every trade has a buyer and a seller in equal number, so the question is never who is more numerous. It is who is initiating, crossing the spread to fill right now, and who is sitting passive on a resting bid or ask waiting to be hit.
A directional move is an imbalance in that aggression. Market buys consume resting asks at each level until the cheap ones are gone and price climbs to find the next sellers. Market sells do the reverse. Depth decides how far each wave travels - a deep book absorbs flow without moving, a thin book lets the same size push price several percent. This is why low-liquidity altcoins lurch on modest volume, why walls hold until they are pulled, and why volume alone misleads when both sides cancel out.
These notes collect observations on how that flow behaves and who reads it. How aggressive orders interact with resting liquidity to set price. How market makers classify flow as informed or noise and widen spreads or step away when toxicity rises. How whales fake the signal through spoofing and engineered walls in thin books, and why news arrives after the flow has already positioned.
The framing is mechanical, not directional. Order flow does not forecast the next move - it describes the imbalance producing the current one. Notes here track aggression at the book, the informed-versus-noise split, and the moments liquidity providers retreat. Read it as field notes, not signal.