The OrderFlow Ratio (OFR) was created by VantageCrypto and we believe will become a leading market indicator for order flow analysis along side other current mainstream indicators. The indicator is quite simple in that it is a single percentage representation indicating if there is more or less buying or selling volume (xBids or xAsks) and how much more or less of which one, relative to the assets total order flow volume.
For example a +25% OFR would indicate that the xAsks represent 25% more of the total order books than the xBids. Where as a -10% OFR would indicate that the xBids represent 10% more of the total orderflow volume than the xAsks.
OFR may provide different signaling for different assets based on an array of factors. Dont expect the Bitcoin order flow signal the same as some low liquidity Ethereum Dapp
We are charting out (and offering via API) the following OFR data sets
- Real Time, updated by the minute
- 1 hour average, updated by the minute
- 3 hour average, updated by the minute
- 24 hour average, updated by the minute
We offer short term averages as they are more appropriate in relationship to the usefulness of order flow data and provide the following value.
- Smooth trendlines
- Avoids impact from single anomolous market spike
- Provides easier to decipher trends
- Provides ability to track the crossing of multiple short term moving averages