Order Flow & Market Phase

Order Flow & Market Phase is a market analysis indicator designed to help traders understand how price behaves when significant participation enters the market.
The script focuses on the interaction between volume, price structure, volatility, and market phases, rather than producing isolated buy or sell signals.

This indicator is built around the idea that meaningful price movements are usually preceded or accompanied by changes in participation, volatility, and structural behavior. Instead of relying on a single method, the script combines several analytical components into one unified framework, where each component serves a specific role.

Core analytical components

Order Flow and Volume Pressure
The script evaluates volume relative to price movement and range expansion to identify imbalances between buying and selling pressure. This helps highlight moments where one side of the market becomes dominant, as well as potential absorption scenarios where large activity fails to move price significantly.

Market Structure and Phase Context
Price structure is analyzed to determine trend continuation, structural breaks, and changes of character. These structural observations are then placed within broader market phases such as accumulation, distribution, markup, markdown, or neutral conditions. The goal is to provide context, not predictions.

Liquidity and Reaction Zones
The script identifies areas where price briefly moves beyond recent extremes and then rejects, suggesting possible liquidity-driven moves. These events are filtered using volume and volatility conditions to reduce random noise.

Supply and Demand Zones
Potential supply and demand areas are detected using price compression, expansion, and volume confirmation. Zones are managed dynamically and filtered by quality factors such as freshness, volume reaction, and higher-timeframe alignment.

Multi-Timeframe Confirmation
When enabled, higher-timeframe data is used to confirm directional bias and participation, allowing lower-timeframe observations to be evaluated within a broader market context.

Adaptive Market Regime Filtering
Volatility and trend conditions are measured using ATR-based normalization and directional metrics. Based on the detected regime, signal strictness is automatically adjusted so that the script behaves differently in trending, ranging, high-volatility, or low-volatility environments.

How to use the indicator
This script is intended as a context and confirmation tool, not a standalone trading system.
It can be used to:

• Filter low-quality trade setups
  
• Align entries with stronger market structure and participation
  
• Understand whether price movement is driven by momentum, accumulation, or distribution
  
• Improve timing and risk awareness when combined with an existing strategy
  

The dashboard summarizes market regime, phase, order flow conditions, and signal quality to help traders make informed decisions without focusing on a single signal.

Important notes

• All calculations are non-repainting and based on confirmed data.
  
• The indicator does not predict future price movements.
  
• Performance metrics shown are session-based and are not a historical backtest.
  
• Works across markets and timeframes, with clearer behavior on liquid instruments.