Traders frequently make basic mistakes when attempting to understand order flow charts. These include over-analyzing data and misinterpreting trends, confirmation bias that distorts conclusions, ignoring the larger market backdrop and basic impacts, and having a narrow emphasis on recent data.

Traders could ignore psychological elements that affect market movements, erroneously believe that order flow directly causes price movements, display excessive confidence, and disregard crucial risk management.

The value of technical analysis is ignored when only looking at order flow, and lack of experience might result in misinterpretation.

Trading well necessitates a well-rounded strategy that incorporates various studies, risk management techniques, and the understanding that order flow is but one element within the overall market environment.