Lesson / WY-A-2
The limit order book shows currently visible resting buy and sell orders. The best bid and quantity are buying quotes; the best ask and quantity are selling quotes; deeper levels show visible limit volume farther from the market. Resting orders are public instructions to trade under specified conditions and may be changed or canceled before execution. Book quantity is therefore neither executed volume nor supply/demand guaranteed to remain. The same aggressive buy quantity may fill at one level against thick offers but lift successive trade prices after sellers withdraw into a thin book. Replenishing offers may absorb later aggressive buying, producing high volume with little displacement. Cancellation and replenishment change what subsequent aggressive orders can consume, so impact depends on volume, contemporaneous depth, and update sequence. Rapidly added and withdrawn orders may reflect changing intent, market-making updates, algorithmic management, or deception; the display alone cannot establish why.
Course content is for learning and research only. It is not investment advice.
Read the Chapter ↗Timestamps
6 lessons · Chapter contents
01I. Distinguish Orders, Quotes, and Trades↗02II. How Aggressor Classification Is Produced↗03III. Bid×Ask in Footprint Charts↗04IV. The Precise Meaning of Delta and Cumulative Delta↗05V. Two Main Explanations of Price–Delta Divergence↗06VI. Using Local Trading Responses in Wyckoff Events↗Observe the market: start with context and place price within its structure.
Understand structure: compare supply and demand, and let evidence support or revise your hypothesis.
Form a view: define risk limits and know when to reassess.
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