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. The depthIndex 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
| Property | Value |
|---|
| Type | Subchart |
| Position | Below main chart |
| Data source | Order book depth snapshots |
Settings
| Parameter | Description | Default |
|---|
| color | Bar/line color | #22c55e |
| depthIndex | Depth bucket to analyze (0-9) | 3 |
| displayMode | Rendering style | columns |
| highlightAnomalies | Flag statistical outliers | false |
| anomalyThreshold | Standard deviation multiplier | 2.5 |
| anomalyPeriod | Lookback period for anomaly stats | 30 |
| gradientIntensity | Fill gradient strength (0-1) | 0 |
Depth Index
The depthIndex parameter controls how deep into the order book the indicator looks:
| depthIndex | Typical Range | Use Case |
|---|
| 0-2 | Near best bid | Scalping, short-term positioning |
| 3-5 | Mid-depth | Swing trading, general analysis |
| 6-9 | Deep book | Institutional positioning, macro view |
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.
Compare Net Longs with Net Shorts for a complete view of market positioning. When both are elevated, expect volatility. When one dominates, the market has a directional bias.
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.