Order Flow Strength
- Indicators
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Vincent Jose Proenca
I’ve been a trader for over ten years, mainly specializing in CFDs. What I love about trading is the logic, the discipline, and the process of creating tools that simplify decision-making. Since I couldn’t find indicators that fit my approach, I started coding them myself, first out of necessity - Version: 1.0
- Activations: 5
Order Flow Strength (OFS)
Description:
An indicator measuring the strength of order flow by analyzing where the close lies within each candle’s range, weighted by volume. Displays buying pressure (green) and selling pressure (red) in a separate panel.
Formula
Order Flow Strength = Close − Low High − Low × Volume \text{Order Flow Strength} = \frac{\text{Close} - \text{Low}}{\text{High} - \text{Low}} \times \text{Volume} Order Flow Strength=High−LowClose−Low×Volume-
Close: candle closing price
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High: highest price of the candle
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Low: lowest price of the candle
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Volume: traded volume during the candle
This formula combines the relative position of the close (near the high or low) with the trading volume to measure the strength of market movement.
Features
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Raw mode
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Displays absolute volume-weighted values.
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Useful for observing actual buying and selling pressure without normalization.
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Normalized mode
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Converts values into z-scores over a configurable period.
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Helps detect statistical anomalies and compare candles regardless of volatility.
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Interpretation
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OFS > 0.5: buying pressure (close near high)
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OFS < 0.5: selling pressure (close near low)
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Practical Use
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Identify accumulation / distribution zones
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Confirm directional moves
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Detect divergences between price and volume pressure
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Validate breakouts and spot potential reversals
Particularly useful for traders who want to combine price analysis with real order flow, providing a clearer view of market dynamics.
