Flow Pressure

Quick Reference

Property	Value
Dimension	signal
Category	order_flow
Version	v0.9.0 (Beta)
Output Column	flow_pressure

Flow pressure: rolling_sum(signed_volume, window) - net directional execution force over a rolling horizon

Formula

rolling_sum(signed_volume, window)

CDM Inputs

Column	CDM Table	Description
signed_volume	cdm_*	CDM source table

Parameters

Parameter	Type	Default	Description
window	integer [1, 1000]	50	Rolling window size for flow accumulation

Output

Column: flow_pressure

Rolling sum of signed volume over the specified window

Market Intuition & Trading Rationale

Flow pressure measures net directional capital flow over a rolling window: rolling_sum(signed_volume, window). It aggregates signed_volume (trade size × direction) over time, producing a cumulative measure of whether more capital has been committed to buying or selling. Strong positive flow pressure means aggressive buyers have dominated the recent window; strong negative means sellers have dominated.

This is one of the most direct measures of institutional activity. Large institutions can't hide their flow — their orders leave footprints in signed volume that accumulate into persistent flow pressure. A gradual buildup of positive flow pressure (steady buying over minutes) is the signature of an institutional accumulation program. A sudden spike in flow pressure (massive buying in seconds) is the signature of a news-driven impulse.

Unlike OFI (which measures resting order changes — intent), flow pressure measures executed trades — action. OFI leads, flow pressure confirms. When both point the same direction, conviction is highest.

Usage Cases

• Institutional accumulation detection: Rising flow_pressure over minutes with minimal price movement = stealth accumulation. The institution is buying without pushing price up — a strongly bullish signal. Enter long; the institution's remaining orders will provide continued buying pressure.
• Exhaustion detection: flow_pressure peaks and reverses = the dominant side has exhausted. If positive flow pressure was driving a rally and suddenly drops, the buying program is complete — prepare for a pullback.
• Volume-confirmed breakouts: Price breakout + strong flow_pressure in the breakout direction = genuine. Price breakout + weak flow_pressure = suspect (low participation, likely false breakout).

YAML Definition

name: flow_pressure
description: 'Flow pressure: rolling_sum(signed_volume, window) - net directional
  execution force over a rolling horizon'
category: order_flow
version: v0.9.0 (Beta)
dimension: signal
status: Pre-release
required_inputs:
  - signed_volume
output_column: flow_pressure
output_description: Rolling sum of signed volume over the specified window
parameters:
  window:
    type: integer
    description: Rolling window size for flow accumulation
    required: false
    default: 50
    constraints:
      min: 1
      max: 1000
formula: rolling_sum(signed_volume, window)