Hidden Order Flow Divergence

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Description:

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Indicator Overview

The Hidden Order Flow Divergence indicator computes a smoothed oscillator capturing divergences between Bitcoin’s price momentum and volume-weighted order flow, using a 14-day EMA on volume deltas normalised against price ranges over the same window, with final smoothing adjustable via SMA (default 10-day). Positive values indicate hidden bullish accumulation (coloured on a green gradient from neutral to bright lime at extremes around +800), while negative readings signal bearish distribution (red gradient to bright red at -800). This reveals potential institutional or “hidden” activity not apparent in price alone, with Bitcoin’s logarithmic price overlaid for context, helping detect regime shifts in market internals.

How To Use

Bullish divergences (green spikes above zero) suggest underlying accumulation and potential upside reversals, ideal for timing long entries during consolidations, while bearish ones (red dips below zero) warn of distribution and downside risk, useful for exits or shorts near highs. Monitor zero-line crossings for momentum changes, upward breaks confirm strengthening buyers, downward ones indicate seller dominance. Extremes beyond ±500 often precede major turns, aiding in risk management; combine with price action for confirmation in volatile Bitcoin cycles.

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