Market Order Driven Order Flow Identifies the Hidden Buyers and Sellers

The commercial institutions do not enter the market using limit orders. Instead, they pulsate their orders into the market using market orders. Cumulative Delta Volume Analysis captures these market orders as they are initiated (which constitute 70% of the commercial institutions’ order flow). Then we can use the Cumulative Delta Volume distributional patterns created by the market order driven order flow to identify the prominent levels in the delta that we can index.