What does the large order ratio indicator mean?

The large order ratio indicator in finance refers to the ratio of the number of large orders (typically defined as orders that are significantly larger than the average order size) to the total number of orders placed in a given period of time. This indicator is used to assess the level of institutional or large investor participation in the market. A high large order ratio may indicate that institutional investors are actively participating in the market, potentially signaling increased interest or confidence in a particular stock or market sector. On the other hand, a low large order ratio may suggest that retail investors are driving market activity, which could have different implications for market dynamics and price movements. Traders and analysts often use the large order ratio as one of many factors to gauge market sentiment and potential price movements. It can provide insights into the composition of market participants and their trading behavior, which can be valuable information for making investment decisions. Overall, the large order ratio indicator offers a way to monitor the activity of large investors and institutions in the market, providing valuable insight into market dynamics and potential future price movements.