Order book imbalances directly trigger changes in stock prices
the verdict
SUPPORTED
the evidence backs this
confidence 81/100
Multiple studies in market microstructure confirm that order book imbalances exhibit a strong positive correlation with future returns and can be used to model and predict short-term stock price movements.
Evidence for · 3
Impact of High-Frequency Trading with an Order Book Imbalance Strategy on Agent-Based Stock Markets
2023 · cited by 8
Paper [0] highlights the established positive correlation between order book imbalance and future returns.
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More for · 2
The Price Impact of Order Book Events from a Dimension of Time
2021 · cited by 1
Paper [6] demonstrates that order imbalances and order execution imbalances directly explain price movements and improve price prediction models.
An Efficient deep learning model to Predict Stock Price Movement Based on Limit Order Book
2025 · cited by 1
Paper [8] notes that utilizing order flow imbalance features helps deep learning models effectively predict stock price movements based on limit order books.