Western Digital Corporation (WDC) gave traders an interesting lesson in momentum reversals on January 9, when a key technical signal preceded a sharp intraday rally.
At 10:17 AM EST, WDC triggered what's called a Power Inflow alert at $187.86. Here's why that matters: the stock had been sliding for the previous hour, down nearly 3%, when suddenly both institutional and retail order flow flipped decisively to the buy side. By 2:45 PM EST, shares had climbed to $197.90, a gain of more than 5% from the signal price.
This kind of move is exactly what order flow enthusiasts live for. The stock was weakening, sentiment looked negative, and then the underlying buying pressure revealed something the price hadn't caught up to yet.
What's a Power Inflow Signal, Anyway?
The Power Inflow alert is a proprietary indicator developed by TradePulse, designed to flag significant shifts in buying activity during the first two hours of trading. The idea is straightforward: when order flow data shows a strong trend toward accumulation, especially from both retail and institutional players, that often precedes upward price movement for the remainder of the session.
Order flow analytics go deeper than just watching price and volume tick by tick. They examine the timing, size, and nature of orders in real time, distinguishing between retail and institutional activity. This gives traders a more granular view of what's actually happening beneath the surface, beyond what shows up on a basic price chart. Think of it as seeing who's buying and selling, not just that buying and selling is happening.
How Western Digital Performed
The numbers tell the story pretty clearly. When the Power Inflow signal fired at $187.86, Western Digital was in retreat mode. But the order flow data suggested something different was brewing. By mid-afternoon, the stock hit $197.90, marking a 5.34% gain from the signal price.
For traders paying attention to order flow, this represented a textbook setup: a stock declining on the surface while buying interest was quietly building underneath. Anyone who entered a position shortly after the alert captured a meaningful intraday move, illustrating why some traders swear by this type of real-time data.
The WDC example shows how order flow analytics can potentially identify momentum shifts and reversals before they become obvious in the price action. It's not a crystal ball, but it does offer a different lens for understanding market dynamics, especially for those looking to capitalize on intraday volatility.
Of course, not every Power Inflow signal leads to immediate gains, and past performance doesn't guarantee future results. But for traders who incorporate order flow into their toolkit, days like this validate the approach. The data showed buying pressure when the price action suggested weakness, and the stock followed through accordingly.
This article is for informational purposes only and does not constitute financial advice, investment recommendations, or a solicitation to buy or sell securities. The analysis is based on stock order flow data, but accuracy is not guaranteed. Investing involves risk, including possible loss of principal, and past performance is not indicative of future results. Please consult a licensed financial advisor before making any investment decisions.