#Definition
Flow refers to the directional movement and velocity of capital, orders, or information in prediction markets. Analyzing flow helps traders identify trends, sentiment shifts, and potential mispricings. The term can refer to order flow, capital flow, or information flow.
#Types of Flow
#Order Flow
The stream of buy and sell orders hitting the market. Traders analyze order flow to understand supply and demand dynamics.
#Capital Flow
The net movement of money into or out of specific markets or outcomes. Large capital flows often precede significant price movements.
#Information Flow
The speed and direction of new information reaching market participants. Markets with good information flow are more efficient.
#Why Flow Matters
Traders who can identify and interpret flow have an edge:
- Spot emerging trends before price reflects them
- Identify informed vs. uninformed trading
- Detect accumulation or distribution patterns
- Anticipate price movements
Full article coming soon.