What Is Order Flow Confirmation?
Order Flow Confirmation means using actual buying and selling activity to support a trading idea.
Suppose price reaches a major support zone.
Instead of buying immediately, you observe:
- Aggressive selling losing effectiveness.
- Buyers absorbing incoming sell orders.
- Delta beginning to improve.
- Price reclaiming an important level.
These observations may provide stronger confirmation than simply touching support.
Location gives you the opportunity. Order flow helps you evaluate the reaction.
Do you wait for confirmation before entering?