Automated Market Makers (AMMs) adjust prices based on order flow, which includes:

1. Order size: AMMs take into account the size of each trade, adjusting prices accordingly.

2. Order frequency: AMMs consider the rate at which orders are being placed, reflecting market sentiment.

3. Buy/sell ratio: AMMs analyze the balance between buy and sell orders, adjusting prices to reflect market demand.

4. Order type: AMMs distinguish between different order types, such as limit orders, market orders, and stop-loss orders.

By analyzing order flow, AMMs can:

1. Identify market trends

2. Assess market sentiment

3. Adjust prices to reflect changing demand

4. Maintain a fair and efficient market

AMMs' ability to analyze order flow enables them to provide liquidity, stability, and accurate pricing, making them a crucial component of modern markets.