How do you detect order flow trading?


Active Trader
Jun 26, 2017
I have red about order flow trading. To summarize: Institutions with big money can't place all their orders once, they would unbalance the market.

So they seek for liquidity points, such as stop losses or take profits in that way they let stop loss trigger moving the market trought them. My question is:

Since stock market (differently by forex) is centralized, with an orderbook,,, how do you detect the order flow trading by reading the orderbook?
Which tecniques do you use?

Or do you go just by speculation: ''Since this is an important point of support, I ASSUME/speculate that institutional will hunt for stop losses and they will make a stop loss cascade happen''...

do you go with this generic assumption, or do you go with somenthing more detailed, when trading trought orderflow tecnique?

Could you share some specific link /resoruce/software where I can get all the informations about big orders and how to detect Iceberg orders?

Thank you very much, and sorry for a ''newby question''


Staff member
Nov 30, 2008
I have not read Anna Coulling's books on Volume Price Analysis (because I focus more on Forex trading), but many traders recommend them. For example, A Complete Guide To Volume Price Analysis.

Trading and Exchanges: Market Microstructure for Practitioners by Larry Harris can also get you started with volume/orders analysis in non-Forex markets.

If you want to dive deeper, there is Coping With Institutional Order Flow, which explains the other side of the trading (how exchanges integrate big orders into their infrastructure).