What Is Order Book Imbalance?

Order book imbalance compares the displayed resting buy quantity with the displayed resting sell quantity.

For example:

Buy orders: 8,000 contracts

Sell orders: 4,000 contracts

The displayed book shows greater buying-side depth.

But does that guarantee price will rise?

Absolutely not.

Orders can be cancelled, modified, or replenished. Aggressive executions can also change the situation instantly.

Order book imbalance is information about displayed liquidity, not a prediction of future price.

Do you trust order book imbalance as a directional indicator?