Market Order Aggression

Market Order Aggression refers to the tendency of traders to use market orders to execute trades immediately, regardless of the price, to ensure their position is filled. This behavior is considered "aggressive" because it consumes liquidity from the order book rather than adding to it.

High levels of market order aggression are typically seen during periods of high volatility or when traders are rushing to enter or exit positions. It is a key indicator of market sentiment, as it reflects the urgency and conviction of market participants.

By monitoring the ratio of market to limit orders, traders can gauge the directional pressure on the price. Understanding this aggression is crucial for identifying when a trend is gaining strength or when it is likely to exhaust itself.