What it shows
Bid Efficiency divides bid volume by total volume; Offer Efficiency divides ask volume by total volume. Both use a simple moving average. Defaults are orange for bid and cyan for offer.
How to read it
- The higher line indicates the larger smoothed volume share.
- Compare shares with price direction. More aggressive buying does not guarantee upward progress.
- Values are proportions, not success probabilities or price movement per contract.
Settings that matter
Look-Back Period defaults to 14. Longer periods smooth more; shorter periods respond faster. Colors and line appearance are adjustable in Subgraphs.
Example sequence
The offer line rises above the bid line while price stalls: a larger offer-side volume share without matching upward progress.
What to keep in mind
Requires bid/ask data. The calculation averages per-bar ratios, rather than dividing accumulated volume over the full window. This differs from the newer Delta Efficiency & Response event study.