Trade Flow

Trade Flow

Trade Flow refers to the continuous stream of executed trades and incoming orders in the market. It reflects whether buying or selling pressure is dominant and helps traders analyze short-term sentiment, momentum, and liquidity conditions.

Trade flow is often used alongside order flow and volume to understand the real-time behavior of market participants.

How Trade Flow Works

Tracks executed trades (buys vs sells)

Identifies whether aggressors are buyers or sellers

Measures the strength and direction of market pressure

Helps reveal momentum shifts before they appear on charts

Can be combined with depth and volume to evaluate execution quality

Trade flow shows what traders are actually doing, not just what they’re planning.

Why Trade Flow Matters

Predicts short-term price direction

Helps detect trend reversals or breakouts

Highlights aggressive buying or selling

Reveals market sentiment in real time

Assists market makers in adjusting liquidity provision

Provides deeper insight than price charts alone

Summary

Trade flow is the real-time analysis of buy and sell pressure in the market, helping traders understand momentum, sentiment, and execution quality.