Stacked Bids

Stacked bids describe a DOM configuration where significant buy limit orders are resting at multiple consecutive price levels below the current market price. Rather than a single large bid at one level, bids are layered across a range: for example, 200 lots at 5,240.00, 180 lots at 5,239.75, 150 lots at 5,239.50.

What stacked bids suggest

At face value, stacked bids signal strong passive buying interest below market price. The market would need to consume all of this limit order volume to push price lower, which requires sustained, committed selling.

For tape readers, genuine stacked bids indicate:

• A price level or zone that well-capitalized buyers want to defend
• A floor below the current market that makes selling into it higher risk
• A potential support zone for long entries on pullbacks

The spoofing caveat

Stacked bids are one of the most commonly spoofed DOM configurations. Algorithmic participants place large visible bids to create the appearance of support: attracting buyers: then pull those orders before price reaches them, leaving buyers trapped.

Signs that stacked bids may be genuine vs spoofed:

• Genuine: bids hold as price approaches and absorb actual selling, visible in T&S as sell prints being absorbed without price dropping
• Spoofed: bids disappear as soon as price gets close, or immediately after a price uptick (the intended effect has been achieved)

Stacked bids vs buy absorption

These are related but different:

• Stacked bids: passive buy orders visible in the DOM before price reaches them
• Absorption: the event of those orders (or others) actually taking the other side of aggressive selling at that level

Stacked bids are a prediction of support; absorption is the confirmation of it.