The Most Important Order Flow Lesson: Effort Versus Result

One of the most useful principles in order flow analysis is comparing effort with result.

Consider two situations:

Situation 1: Heavy aggressive buying produces strong upward movement.

Situation 2: Heavy aggressive buying produces almost no upward movement.

The same buying effort creates two completely different outcomes.

The second situation deserves attention because opposing liquidity may be absorbing the buying pressure.

This principle can also be applied to aggressive selling.

Never analyse volume without analysing the price movement it produces.

What matters more to you: trading activity or the result of that activity?