Order Flow Trading Indicators
Price indicators like moving averages and MACD describe what already happened. Order flow indicators look at who is pushing right now — resting depth, imbalance, spread and volume. Here is how the ones in Depth Desk work, what they can and cannot tell you, and how to combine them.
What is real, and what is modeled
Depth Desk uses real best bid, best ask, spread, last price and volume. Deeper order book levels are modeled from those inputs, because full Level 2 depth requires licensed exchange data. Treat deeper levels as an estimate of shape, not as actual resting orders.
Order book imbalance
Compares resting bid size with ask size across the top levels: (bid − ask) / (bid + ask). Readings persistently above +0.3 suggest buyers dominate the visible book; below −0.3, sellers. A single tick is noise — look for persistence.
Spread behavior
A tight, stable spread means liquidity is healthy. A spread that widens repeatedly means market makers step back — often around news or thin depth. Compressing spread with rising volume is a common continuation cue.
Volume spikes and buy/sell pressure
Volume relative to the normal pace shows participation. Combined with where prints occur (near bid or ask), it gives a buy/sell pressure reading that Depth Desk refreshes every 30 seconds.
Depth Desk Score (DDS)
DDS combines trend, momentum, RSI, pressure and liquidity into one 0–100 reading, so you can compare tickers quickly. It is a summary, not a signal to buy or sell.
Bull flags, bear flags and bull traps
Flag patterns are consolidations after a sharp move. A bull flag can precede continuation up; a bear flag or a bull trap warns that a bounce may fail. Depth Desk flags them when detected or discussed in the analysis.
Example reading
Imbalance +0.42 held for a minute, spread compressing from 3 to 1 tick, volume 1.8× normal. Read: buyers are urgent and liquidity is returning. A disciplined trader still waits for price confirmation and defines a stop beyond the level.
Order flow vs. lagging indicators
| Indicator | Based on | Character |
|---|---|---|
| Moving averages, MACD | Smoothed past prices | Slow, confirms trends |
| RSI (Wilder, 14) | Past gains vs losses | Overbought/oversold context |
| Imbalance, spread, pressure | Current supply and demand | Fast, noisy, short horizon |
What would you like to do next?
New to order books?
The beginner tutorial explains the order book, spread, buy/sell pressure and trend signals step by step.
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Answers about data sources, trend signals, pricing and what the app can — and cannot — do.
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Depth Desk is a research tool. Nothing on this page is investment advice. Trading involves risk of loss.