Overview
Net Longs measures the net long bias extracted from order book depth data. It quantifies how much buying interest (bid-side depth) exists relative to a baseline, giving you a read on passive buyer positioning before trades actually execute. Unlike trade-based indicators (CVD, Delta), Net Longs shows intent — orders sitting in the book waiting to be filled.How It Works
The indicator analyzes order book snapshots at regular intervals and computes the net long bias at a configurable depth bucket. ThedepthIndex parameter selects which depth level to analyze — higher indices look deeper into the book, capturing larger passive orders that are further from the current price.
Chart Type
Settings
Depth Index
ThedepthIndex parameter controls how deep into the order book the indicator looks:
Lower depth indices show more volatile, frequently changing positioning. Higher indices capture larger passive orders that change less often and may reflect institutional intent.
Interpretation
Rising Net Longs
Increasing long positioning in the order book suggests growing buying interest. When this precedes a price rally, it can indicate informed positioning.Declining Net Longs
Passive buyers pulling their orders is a sign of weakening conviction. If this happens while price is still elevated, it may foreshadow a pullback.Divergence from Price
Net Longs falling while price rises suggests that passive buyers are not supporting the move — the rally may be driven purely by aggressive market orders and could run out of fuel.Practical Examples
- Bid stacking: Net Longs rising sharply below a key support level — passive buyers defending the zone.
- Trap detection: Net Longs high at resistance while price fails to break — buyers may be trapped if the level holds.
- Pre-move signal: Net Longs building during consolidation — potential breakout to the upside.
Related Indicators
- Net Shorts — the sell-side counterpart
- Net Longs/Shorts — combined overlay of both
- Open Interest — total outstanding positions