Passive Seller

Order Flow Analysis Glossary

A participant who rests a limit order to sell at or above the current offer and lets the market come to them. Passive selling is inferred from the footprint by large ask volume at a high that fails to produce further price advance — aggressive buyers lift the offer repeatedly, but the resting institutional seller absorbs every buy and caps the market. The bid volume at the same price is typically small, because aggressive selling is not what is driving the activity.

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