Order Flow Trading Glossary
Definitions of key terms used in order flow trading and market microstructure analysis. Whether you are new to order flow or looking to sharpen your understanding, this glossary covers the concepts that power professional trading.
A
Absorption
When large resting limit orders absorb aggressive market orders without significant price movement. Indicates strong support or resistance. Visible on cluster charts as high volume at a single price level with minimal price change.
C
Cluster Chart
A chart that breaks down each candlestick into individual price levels, showing buy and sell volume transacted at each price. Reveals the microstructure hidden inside traditional OHLC bars. Also called a footprint chart. See cluster charts in Trading Glass.
Cumulative Volume Delta (CVD)
The running total of buy volume minus sell volume over time. Rising CVD indicates net buying pressure; falling CVD indicates net selling. Divergence between CVD and price often signals reversal. Related to delta.
D
Delta
The difference between buy volume and sell volume within a single bar or price level. Positive delta means more aggressive buying; negative delta means more aggressive selling. See also Cumulative Volume Delta (CVD).
Depth of Market (DOM)
The order book showing resting limit orders at each price level. Displays available liquidity and where large orders are stacked. In Trading Glass, depth is visualized as a 3D surface behind the price chart. Explore the 3D order book.
E
Exhaustion
When momentum fades at a key price level, visible as declining volume and delta at successive bars in a trend direction. Often precedes reversals. Trading Glass marks exhaustion events with triangle overlays on cluster charts.
I
Iceberg Order
A large hidden order that only shows a small visible portion on the order book. The full size is revealed as the visible portion gets filled and auto-replenishes. Detectable through order flow analysis as repeated fills at the same price. Related to Depth of Market.
Imbalance (Order Flow Imbalance / OFI)
A significant difference between buy and sell volume at a price level, indicating directional pressure. High imbalance zones often act as support or resistance. Trading Glass calculates OFI as a real-time indicator. See order flow indicators.
L
Liquidity
The availability of resting orders at various price levels. High liquidity means large orders can be filled with minimal price impact. Liquidity pools are visible on the order book depth visualization.
M
Market Microstructure
The study of how orders, trades, and prices interact at the most granular level. Includes order book dynamics, trade execution, and price formation mechanics. The foundation of order flow analysis. Learn more in the Trading Glass Academy.
P
Point of Control (POC)
The price level with the highest traded volume within a given period or range. Acts as a magnet for price and a key reference for support/resistance. Displayed on volume profile.
S
Spoofing
Placing large orders with the intent to cancel before execution, creating a false impression of supply or demand. Illegal in regulated markets. Detectable through rapid order book changes.
T
Tape Reading
Analyzing the time and sales feed (trade tape) to understand real-time buying and selling activity. In Trading Glass, the tape displays as a real-time scrolling list of executed trades with size, price, and aggressor side. See the live trade tape.
Tick Size
The minimum price increment for a trading instrument. In Trading Glass, tick size controls the granularity of cluster chart grouping — smaller tick sizes show more detail, larger tick sizes aggregate more volume per cell.
V
Volume Profile
A histogram showing total volume traded at each price level over a defined period. Identifies high-volume nodes (areas of acceptance) and low-volume nodes (areas of rejection). Available as both an indicator and a drawing tool in Trading Glass. See also Point of Control (POC).
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