Bid/Ask Imbalance Ratio
Measure the balance of resting buy versus sell orders in the order book — revealing whether passive supply or demand dominates before trades even execute.
What is Bid/Ask Imbalance Ratio?
Bid/Ask Imbalance Ratio calculates the ratio of total bid volume to total ask volume in the order book, displayed as a time-series indicator below the price chart. A reading above 1.0 means there are more resting buy orders (bids) than sell orders (asks) — passive demand exceeds passive supply. A reading below 1.0 means there are more resting sell orders than buy orders — passive supply exceeds passive demand.
This indicator works with fundamentally different data than taker-based indicators like Vol Delta or Taker Ratio. Those measure aggressive orders (market orders that cross the spread). Bid/Ask Imbalance measures passive orders (limit orders resting in the book). Together, aggressive and passive flow paint the complete picture of market dynamics. Aggressive orders move price; passive orders define the boundaries.
The data is sourced from Hyperliquid’s on-chain order book, providing a transparent and manipulation-resistant view of resting liquidity. Each data point represents a snapshot of the live order book’s bid/ask balance at that moment in time, allowing you to track how the supply/demand landscape shifts across candles.
Key Concepts
- Ratio > 1.0: More bid volume than ask volume — passive buying interest exceeds selling interest. The order book is structurally supportive of higher prices
- Ratio < 1.0: More ask volume than bid volume — passive selling interest exceeds buying interest. The order book is structurally resistant to higher prices
- Ratio = 1.0: Perfect balance between bids and asks — neither side has a passive advantage
- Bid Wall: A concentrated cluster of large bid orders that creates a visible support level in the order book. Shows up as a high ratio spike
- Ask Wall: A concentrated cluster of large ask orders that creates resistance. Shows up as a low ratio reading
- Passive vs Aggressive: Bid/Ask ratio measures intent (where traders are willing to buy/sell) while taker data measures action (where trades actually executed)
How to Use Bid/Ask Imbalance Ratio
- Open Chart from the sidebar and navigate to the indicator settings
- Enable the Bid/Ask Imbalance Ratio indicator — it will appear in a sub-chart below the main price chart
- The 1.0 midpoint represents balance — readings above indicate bid dominance, below indicate ask dominance
- Track the trend of the ratio over time to identify shifts in passive order book positioning
- Compare the ratio reading with current price action to detect agreement or conflict between passive positioning and actual price movement
What to Look For
- Bullish signals: A rising bid/ask ratio during a price pullback indicates that passive buyers are stepping up as price declines — strong hands are placing bids into weakness, building a floor. Ratio spiking above 1.5 or 2.0 signals an unusually heavy concentration of bid-side liquidity that will likely act as support. When the ratio transitions from below 1.0 to consistently above 1.0, the order book regime has shifted from supply-heavy to demand-heavy — a structural change that often precedes price recovery.
- Bearish signals: A declining bid/ask ratio during a price rally means passive sellers are stacking orders above — supply is building ahead of price, creating a wall that the rally must break through. Ratio dropping below 0.5 indicates severe ask-side dominance — the order book is heavily loaded with sell orders, making upside progress difficult. When the ratio transitions from above 1.0 to consistently below 1.0, supply has overwhelmed demand in the book — a structural headwind for price.
- Key patterns: Bid/ask ratio divergence from price is a leading signal. If price is rising but the ratio is declining, passive sellers are quietly building positions above the market — the order book is setting up resistance that price will eventually hit. If price is dropping but the ratio is rising, passive buyers are absorbing the selling — the order book is building support. Sudden ratio spikes followed by their disappearance can indicate “spoofing” — large orders placed and canceled to create a false impression. These are less common on Hyperliquid due to on-chain transparency but still worth watching. The ratio often compresses toward 1.0 before major moves, as passive liquidity balances out before a breakout in either direction. Monitor for ratio breakouts from this compressed state.
- Combine with: Limit Order Delta for the directional view of limit order flow, Vol Delta Histogram for the aggressive flow to compare passive positioning with actual execution, Depth Heatmap for a visual representation of the same order book data across price levels and time, Limit Order Heatmap to see exactly where the large passive orders are resting
Supported Exchanges
| Exchange | Status |
|---|---|
| Hyperliquid | Supported |
Bid/Ask Imbalance Ratio uses Hyperliquid on-chain order book data collected via the L1 node, providing transparent and real-time liquidity metrics.
Tips
- The order book is dynamic — large orders can appear and disappear. Use the ratio’s trend over multiple candles rather than reacting to a single reading
- A high bid/ask ratio near a key support level significantly increases the probability that the level holds — it means passive capital is committed to defending that price
- Compare this indicator with taker-based flow indicators (Vol Delta, Taker Ratio). When both passive positioning (high bid/ask ratio) and aggressive flow (positive delta) align, the signal is strongest
- Order book data is forward-looking (intent) while trade data is backward-looking (execution). Use the bid/ask ratio to anticipate where the market wants to go, and taker data to confirm that it is actually going there