Resting Liquidity vs. Executed Volume

Resting liquidity and executed volume tell different stories.

Resting liquidity refers to limit orders waiting in the order book.

Executed volume represents trades that have actually occurred.

For example, the DOM might display a large sell order above the current NQ price. That order represents displayed liquidity, not completed selling.

If the order is cancelled before buyers reach it, no trade occurs against that displayed quantity.

This distinction is important because some traders treat every large DOM number as a firm barrier.

I prefer to separate what is displayed from what actually trades, and then study how price reacts.

The order book shows available orders. The tape shows executions. Neither reveals every participant's intentions.