ANALYTICAL WORKFLOW
Order-Flow Heatmap Analysis — Connecting Liquidity with Execution
A liquidity heatmap is most useful when resting orders are evaluated alongside what actually trades and how price responds.
Three questions to ask
- Did the displayed liquidity persist, move, or disappear as price approached?
- Was meaningful volume executed at the level, and did delta confirm or conflict with the move?
- Did price accept beyond the level or reject it, and what evidence would invalidate the interpretation?
Avoid single-signal conclusions
A bright band can represent genuine interest, temporary quoting, or a level that will be consumed. Use sequence, execution, and response instead of brightness alone.