Futures Order Flow

At minimum: Platform showing delta bars and cumulative delta. Better: Footprint charts and volume profile. Professional: Add DOM (depth of market) and time & sales. Start simple with delta/CD.

No. While often used for scalping, order flow works on any timeframe. 5-15 minute for day trading, 1-4 hour for swing trading. Larger timeframes show bigger picture flow patterns.

Compare to recent bars. A large delta is significantly above the average delta for recent bars. Context matters - what's large in one market may be normal in another.

Yes. SGX futures like Nikkei 225, China A50, Nifty 50 have good volume for order flow analysis. You need data from your broker or a third-party vendor. Most liquid during underlying market hours.

Price action shows what happened. Order flow shows WHY it happened - the actual buying/selling. It's like seeing behind the curtain. Two candles may look the same but have very different order flow.

Absorption: Flow absorbed WITH price stability - Level holds; Trend may continue. Exhaustion: Flow spike WITH price reversal - Trend ending. Absorption shows strength; Exhaustion shows weakness.

Delta divergence is one of the most reliable order flow signals. Price making new highs with less buying (lower delta) or new lows with less selling (higher delta) often precedes reversals. Always confirm with price action.

Value Area is the range containing approximately 70% of traded volume. It represents where price 'accepted' value. VAH (Value Area High) and VAL (Value Area Low) act as support/resistance.

Look for price levels where bid and ask volume differ by 300%+ (3:1 ratio). Example: 150 bid | 500 ask = Buy imbalance. Stacked imbalances (multiple levels) are very strong signals.

Not always. Trading with strong delta is generally good. BUT at key levels, absorption (opposite delta absorbed) can be a reversal signal. Context is key - delta at a random spot vs delta at major support/resistance.

Signs: Same price keeps filling despite being hit repeatedly; Large volume at price vs small display size in book; Footprint shows disproportionate volume. Icebergs reveal institutional interest and create strong S/R.

Price sweeps beyond obvious level (taking out stops, creating delta spike), then flow is absorbed, and price reverses. Institutions trigger retail stops for liquidity, then trade opposite direction. Enter on reversal confirmation.

Accumulation (buying): Selling absorbed at lows, CD rising or not falling, higher lows in range. Distribution (selling): Buying absorbed at highs, CD falling or not rising, lower highs in range. Volume often picks up.

Time & Sales shows every trade. Pros watch for: Large prints (size), Speed of tape (momentum), Price of execution (at bid vs ask), Clusters of activity. It's the fastest way to see flow, but requires practice.

Yes, but challenging. Delta and CD are straightforward. Footprint imbalances can be coded with threshold rules. Absorption/exhaustion requires more complex logic. Major challenge: Subjective elements are hard to quantify.