Order flow is the most fundamental and direct manifestation of market activity; like the lifeblood of the market, it carries the intentions, emotions, and capital flows of participants. Understanding order flow is akin to exploring the source and current of a river, enabling us to grasp the market's pulse more profoundly. Traditional chart analysis methods, such as the familiar candlestick charts, record the open, high, low, and close (OHLC) prices within a specific period in a concise and intuitive manner. Candlestick charts undoubtedly outline for us the macroscopic contours of price movements, helping to identify trends, patterns, and key support and resistance levels. However, candlestick charts themselves are more of a presentation of the "results" of price action. They tell us how prices have moved over a period, but regarding the "process" driving these movements—that is, at each specific price level, how the forces of buyers and sellers compare, which side is more aggressive, and how volume is distributed—the information provided by candlestick charts is relatively limited. We only see the shape and color of a candlestick, but it is difficult to directly perceive the true trading dynamics hidden within. It is precisely to bridge this information gap, to enable traders to "see through" the market's internal microstructure more deeply, and to investigate the true drivers behind price changes, that order flow analysis methods and their visualization tools came into being. Market participants are no longer content with merely observing the superficial rise and fall of prices, but rather aspire to understand, at every subtle fluctuation in price, how buyers and sellers specifically contend, and what their intentions and balance of power are. Driven by this demand, a series of analytical tools aimed at revealing the details of order flow have been developed. Among these, the Order Flow Footprint Chart is a highly representative and powerful example. It attempts to present abstract, rapidly scrolling order flow data to traders in a more structured and easily interpretable manner, thereby providing a more solid data foundation for market analysis and decision-making.
Overview of CoinGlass Legend Footprint Charts
Order flow footprint charts, as the name suggests, build upon traditional candlestick (or bar) charts by displaying the "footprints" left by market participants at each price level. These footprints represent the actual volume of buy and sell orders that have been executed. Within the body or wicks of each candlestick, and corresponding to every price level it spans, two key volume figures are clearly indicated numerically: the seller-executed volume and the buyer-executed volume.
Seller-Executed Volume (Volume at Bid / Sell Volume): At a given price level, this represents the volume transacted when aggressive sell orders (such as market sell orders or limit sell orders hitting the bid) are matched with passive buy orders (limit orders resting on the bid).
Buyer-Executed Volume (Volume at Ask / Buy Volume): At a given price level, this represents the volume transacted when aggressive buy orders (such as market buy orders or limit buy orders hitting the ask) are matched with passive sell orders (limit orders resting on the ask). These two figures are typically displayed side-by-side at the corresponding price level, for example, with seller-executed volume on the left and buyer-executed volume on the right (often referred to as a Bid x Ask format).
Point of Control (POC): Within a single candlestick/bar, this is the price level with the highest transacted volume. It is generally considered the price level where market engagement was most intense and value was most accepted during that period.
Additionally, CoinGlass Legend also provides a Volume Delta display. At each price level, this shows the difference between buyer-executed volume and seller-executed volume (Buy Volume - Sell Volume). A positive Delta indicates that buyers were more aggressive at that price level, while a negative Delta suggests the opposite. The total Delta for the entire candlestick/bar is also a significant reference indicator, reflecting the overall balance of aggressive buying versus aggressive selling pressure during that period.
Through the combination of these elements, order flow footprint charts clearly reveal the granular trading activity that was previously obscured within standard candlestick charts. Traders are no longer limited to observing that the price has reached a particular price point; instead, they can see, at that specific price level, whether buyers or sellers were the dominant force behind executed trades, how volume was distributed, and the presence of any significant imbalances in trading pressure.
Market Dynamics Revealed by CoinGlass Legend Footprint Charts
In an uptrend, if the footprint chart for each bullish candlestick shows healthy buyer-executed volume (especially at key breakout points), and the Delta consistently remains positive, it indicates strong buyer conviction, and the trend is likely to continue. However, if a bullish candlestick appears at high price levels with diminishing internal buyer-executed volume, a decreasing or even negative Delta, or if significant seller-executed volume emerges while the price stagnates (volume accumulating at the top), it could be an early signal of trend exhaustion.
When the price approaches a historical support level, if the footprint chart shows significant seller-executed volume near the support, but the price fails to break down decisively, and instead, substantial buyer-executed volume emerges, gradually absorbing the selling pressure (high seller-executed volume met with high buyer-executed volume, and the Delta potentially shifting from negative to positive or neutral), this may indicate genuine buying interest stepping in at that support, rather than just a random bounce after the price touches it. The converse is true for resistance levels.
When one side (e.g., sellers) actively pushes the price, but the other side (buyers) absorbs these aggressive orders with a large volume of passive orders at a specific price level, causing the price movement to stall or slowly reverse. On the footprint chart, this would appear as high volume from one side at a price extreme, met by high volume from the opposing side, with the price failing to continue its advance/decline. For instance, during a price decline, if a significant amount of seller-executed volume appears at a certain level, but this is immediately or concurrently met with a notable increase in buyer-executed volume, preventing further price decline.
When the market moves in one direction, but the volume of aggressive orders driving that move gradually diminishes, it indicates that the driving force is becoming exhausted. For example, if the price makes a new high, but the footprint chart shows that the aggressive buyer-executed volume is considerably less than during previous upward waves, and the Delta also weakens, this may signal that buying power is nearing exhaustion, increasing the risk of a reversal.
When the price attempts to break out of a significant consolidation area or a key resistance/support level, the footprint chart can provide clues as to whether the breakout is "genuine." An effective upward breakout is typically accompanied by sustained, strong buyer-executed volume and a positive Delta at and above the breakout price. If the volume is sparse during the breakout, or if buying strength is insufficient (a weak or negative Delta), it might be a false breakout.
When using CoinGlass Legend order flow footprint charts for market analysis, integrating them with other analytical tools and technical indicators can significantly enhance the understanding of market dynamics. Of particular note is the combination of order flow footprint charts with liquidity heatmaps. Order flow footprint charts precisely reveal the volume of buyer-executed and seller-executed orders that have actually transacted at each price level within a specific period, reflecting the true trading interplay and balance of power. Liquidity heatmaps, on the other hand, dynamically visualize the distribution of open limit orders in the current order book, intuitively highlighting areas of high liquidity, which represent potential support or resistance zones.
By comparing these two types of information—executed order flow (from footprint charts) and unexecuted limit order intentions (from heatmaps)—analysts can gain deeper insights into the market's true behavior at key price levels. For example, one can observe whether actual transacted volume aligns with strong liquidity zones displayed in the order book, or whether large resting orders are being effectively absorbed or breached. This combined analysis helps to more comprehensively understand the actual state of market liquidity, the distribution of order book pressure, and anticipate potential price action, thereby providing a more multifaceted and refined data basis for trading decisions. In addition to heatmaps, footprint charts can also be combined with Volume Profile, classic chart patterns, and other traditional technical analysis methods to use micro-level order flow data to validate or refine macro-level judgments.
