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Volume and order flow basics
Explain what volume confirms and what a footprint chart shows.
Candles show you where price went. Volume shows you how much effort it took to get there. Order flow goes 1 step further and shows who was doing the pushing.
What volume is
Volume is the number of contracts traded in a given period. On most charts it appears as bars along the bottom, 1 bar per candle. A tall bar means many contracts changed hands. A short bar means few did.
Volume tells you how many traders are taking part. A move with lots of participation has more fuel behind it than a move that happens while everyone is watching.
What volume confirms
- Breakouts: a break of a key level on rising volume is more trustworthy. Many traders agree with the move.
- Weak breakouts: a break on low or falling volume is more likely to fail and snap back into the range.
- Trends: in a healthy trend, volume tends to be higher on moves in the trend direction and lighter on pullbacks.
Example: NQ pushes through the prior day high at 10:05am ET. The breakout candle has the tallest volume bar of the morning, and the next 2 candles hold above the level. That is a breakout with participation behind it. If the same push came on a tiny volume bar and price slipped back under the level, it would be a warning sign.
Volume follows the clock
Remember lesson 4: volume is naturally highest around the 9:30am ET open and lowest overnight and midday. Compare a candle's volume with what is normal for that time of day, and you will avoid reading too much into a quiet lunch hour.
Order flow: inside the candle
A regular volume bar tells you how many contracts traded. It does not tell you whether buyers or sellers were more aggressive. Order flow tools do.
Every trade has a buyer and a seller. Order flow looks at which side was in a hurry: buyers lifting the offer or sellers hitting the bid. That aggression is what moves price.
What a footprint chart shows
A footprint chart opens up each candle and shows, price by price, how many contracts traded on the bid and how many on the ask. It lets you see things a normal candle hides:
- Where heavy buying or selling happened inside the bar
- Whether aggressive buyers are getting absorbed by sellers at a level
- The difference between buying and selling volume, often called delta
Footprint charts take practice to read. Start by simply watching them at the key levels from lesson 6 and noting what happens before price turns.
ATAS for BluSky traders
BluSky traders get ATAS order flow tools free. ATAS includes footprint charts and other volume tools built for futures. The guide linked below explains what is included and how to get started.
Keep it in proportion
Volume and order flow are confirmation tools. They work best alongside levels and a clear plan. Use them to judge whether a move has real participation, and let your setup decide when to act.
Key takeaways
- Volume shows how many traders are taking part in a move.
- A breakout on rising volume is more trustworthy than one on falling volume.
- Order flow tools like footprint charts show the buying and selling inside each candle.
Free ATAS order flow tools for BluSky traders
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Flight School is educational content only and is not financial advice. Futures trading involves substantial risk of loss and is not suitable for every investor. Past performance does not guarantee future results.