Q: Does the indicator draw correctly?
When changing the Plot type mode in Liquidity migration in the mzMarketDepth indicator, the color of the displayed values changes to the opposite, that is, for one Plot type, the red color prevails in the indicator depending on the number of Bid and Offer, and for another Plot type value, the prevalence is already drawn by another color with the unchanging amount of the same Bid and Offer, but only calculated by the delta (Plot type = OfferBidDelta).
A: The indication is correct.
OfferBid plots are overall Offer Migrations line and overall Bid Migrations line.
The red line means the migration is on offer. Offer migration is positive, it is resistance to price movement upwards, therefore the color is red.
OfferBidDelta = Offer Migration – Bid Migration
In this case, we see a large positive candle.
This is possible in 3 cases.
1) A large amount of liquidity has been added on offer
2) A large amount of liquidity was removed from bids
3) 1 and 2 at the same time
In all cases, this is a growing resistance on the offers.
It is indicated in green because you have selected green color for Up-candles. The meaning of the coloring here is different. The pressure side determines in which half-plane with respect to 0 there is a candle. If in positive – pressure is on offers, negative – pressure is on bids.
In this particular case, there was a sharp pressure on the offer at the end of the swing. The price has sharply discarded. The timing (no more than 5 seconds) is very similar to the spoofing in the DOM.