Limit Order Average Size

Overview Limit Order is an order to buy or sell a security at a specified price. Primary goal of submitting a limit order is to ensure price however execution of your trade is not guaranteed. These participants are known as market makers or passive order. Market and limit orders are constantly being placed at all times during market hours. Studying executed orders can help users understand activity at different price levels whereas resting orders can help identify future potential interest. In this section we will be focusing on executed orders (orderflow). For more information on resting orders you can look at our Orderbook section. This indicator shows the count of buy trades, sell trades, total trades, and delta during a specific time period, represented by a candlestick on a chart. You can access the indicator on the Main Chart product under the Orderflow & Open Interest.

Indicator Description The limit order average size indicator is another technical analysis tool that shows the average size of resting orders that got executed during a specific time period (candlestick). You can access the indicator on the Main Chart product under the Orderflow & Open Interest.

This indicator can we filtered by the the count of buy trades, sell trades, total trades, and delta during the time period. Buy: Count of executed limit buy orders Sell: Count of executed limit sell orders Total: Count of executed limit Buy Orders + Count of executed limit Orders Delta: Count of executed limit Buy Orders – Count of executed limit Sell Orders This indicator can be key understanding market sentiment and is an additional way to breakdown buyer and seller activity:

• Identifying periods of high trading activity can indicate a potential reversal, a strong support/resistance zone, and other market movements.

• High limit order size can possibly indicate areas of absorptions

• High limit order size can indicate activity is coming from institutions and low size can represent retail.