Aggressive versus passive: who moves price

Two families of orders, and the tension between them is the entire mechanics of the market.

Passive orders (limit orders) are placed in the book and wait for someone to come and execute against them. They add liquidity. They are what the heatmap colors. Patient, they defend a price.

Aggressive orders (market orders) cross the spread to execute immediately against the passive side. They remove liquidity and move price. They are what the Volume Bubbles display.

The rule of the balance of power

• Up move = aggressive buyers dominating the passive offer.
• Down move = aggressive sellers dominating the passive bid.
• The speed of price depends on the ratio between aggression (bubbles, CVD) and the passive wall in front of it (heatmap).