Order Flow (OF): the leg that started the move

6 min 55 XP

What Order Flow is

Order Flow (OF) is the last impulsive move before a reversal — the leg that actually started the new direction. In a market about to rise, the last selling move before the rise is the Bullish Order Flow. In a market about to drop, the last buying move before the drop is the Bearish Order Flow. It needs at least two candles, and you mark its full range — that becomes a demand (bullish) or supply (bearish) zone.

Order Flow vs Order Block

Think of Order Flow as the whole origin LEG of a move, and the Order Block (next lesson) as the single most important candle inside it. OF is the zoomed-out zone; the OB is the refined, precise entry candle within it.

Un-mitigated OF ✅

Price has not yet returned to the leg.
A live demand/supply zone.
The first return is the high-probability trade.

Mitigated OF ❌

Price already returned and reacted off it.
Used up — one-time use only.
No edge on the second visit.

OF = the last opposing impulse before a reversal (min 2 candles).
Bullish OF = last selling leg before a rise (becomes demand).
Bearish OF = last buying leg before a drop (becomes supply).
Trade the FIRST return into an un-mitigated OF.
OF is the leg; the Order Block narrows it to one candle.

Praxis.

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Level 2: Technical Analysis

M7 · Order Blocks · Lesson 124/144