Spoofing and layering, shown one order at a time. This pattern can only be seen at the level of the order book.
Every order below is synthetic and scripted, not observed. Order identifiers, sizes, and timestamps are constructed to show the pattern an analyst looks for: a resting order much larger than the orders around it, cancelled just before the market would have reached it, rather than to reproduce a real venue's feed. Spoofing places one outsized order; layering spreads the same effect across several smaller orders at once. The toggle below switches between them on the same order book.
Companion to: Reading the signal and Ten stocks in one session
Keep an eye on the banner below as you scrub or play. It is where the pattern gets flagged, in three stages.