# order flow

## What Is It?

The Order Flow pillar measures the net buying or selling pressure on an asset using **Cumulative Volume Delta (CVD)**. For each bar, it estimates how much volume was driven by buyers vs. sellers — then aggregates this over time to reveal the dominant force in the market.

It appears as **green bars** (buying pressure) and **red bars** (selling pressure) centered at the 50 midline on the oscillator panel.

> **UI name:** "Enable Order Flow" in the settings panel. The bars are labelled "Order Flow" in the Style tab (Color 0 = bullish green, Color 1 = bearish red).

***

## How Order Flow Is Calculated

For each bar, the indicator estimates buy/sell volume using the High-Low-Close relationship:

* **Buy fraction** = (Close − Low) / (High − Low)
* **Sell fraction** = (High − Close) / (High − Low)
* **Delta** = Volume × (Buy fraction − Sell fraction)

This delta is summed over a 21-bar rolling window to get the raw Order Flow value.

### Z-Score Normalization

The raw value is normalized using a 300-bar rolling z-score:

```
Order Flow Z = (Raw Value − Mean) / Std Dev
```

This ensures the Order Flow reading is **comparable across assets and timeframes**, regardless of absolute volume levels. The z-score is then scaled and soft-clamped at ±60 to prevent outliers from dominating the display.

The final value is shifted to center at 50, so:

* **Above 50** = net buying pressure
* **Below 50** = net selling pressure

***

## Multi-Exchange Volume

By default, Order Flow aggregates volume from three spot markets simultaneously:

| Exchange | Symbol            |
| -------- | ----------------- |
| Binance  | `BINANCE:BTCUSDT` |
| Coinbase | `COINBASE:BTCUSD` |
| Kraken   | `KRAKEN:BTCUSD`   |

This gives a much more representative picture of true market activity than a single exchange's volume alone.

{% hint style="warning" %}
These symbols are hardcoded for BTC. If you are using this indicator on an **altcoin or non-BTC asset**, the Order Flow bars will reflect BTC volume data. This is intentional for macro market structure context — BTC volume often correlates with broader crypto market direction — but be aware of this when analyzing alt signals. Consider disabling Order Flow if you find it misleading for your specific asset.
{% endhint %}

***

## Role in Signal Generation

### Long Gate (Order Flow approves a long)

Order Flow approves a long signal when:

* The Order Flow value has been **rising** over the last 5 bars (buying pressure is building)

### Short Gate (Order Flow approves a short)

Order Flow approves a short signal when:

* The Order Flow value has been **falling** over the last 5 bars (selling pressure is building)

This is deliberately simple — the key question is just: is buying or selling pressure trending right now?

***

## Reading the Bars

| Bar Color                   | Meaning                                   |
| --------------------------- | ----------------------------------------- |
| 🟢 Green (above 50 midline) | Net buying pressure — buyers in control   |
| 🔴 Red (below 50 midline)   | Net selling pressure — sellers in control |
| Tall bar                    | Strong directional pressure               |
| Short bar near midline      | Weak or balanced buying/selling           |

Look for **growing green bars** during a long setup and **growing red bars** during a short setup. When bars shrink back toward the midline, Order Flow is neutralizing — be cautious.

***

## Settings

| Setting           | Location in UI     | Description                                        |
| ----------------- | ------------------ | -------------------------------------------------- |
| Enable Order Flow | Order Flow section | Enables or disables the Order Flow pillar entirely |

The internal Order Flow parameters (z-score window, normalization period, clamp) are fixed and calibrated for crypto markets on 1H–4H timeframes.

***

## Tips

* **Order Flow divergence** is one of the most powerful setups available. If price makes a new low but Order Flow makes a higher low, sellers are losing steam even as price drops. The divergence system can automatically detect and score this.
* On **illiquid assets or small-cap coins**, volume data may be sparse or unreliable. Consider disabling Order Flow for these assets.
* In ranging markets, Order Flow bars often alternate between small green and red near the midline with no clear conviction. The Chop Zone filter on the Momentum pillar usually handles this — but watching bar height is an additional visual confirmation of conviction.
* The bar colors in the Style tab are labelled **Color 0** (bullish/green) and **Color 1** (bearish/red) — you can customize these colors to your preference.


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