Chapter 3: Market Microstructure

Trade Signing and the Lee-Ready Algorithm intermediate

Trade direction is usually missing from market data, but many microstructure features only make sense after you reconstruct it.

Trade direction is usually missing from market data, but many microstructure features only make sense after you reconstruct it.

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References

Market Microstructure: A Practitioner's Guide
Ananth Madhavan (2002) — Financial Analysts Journal
Inferring trade directions in fast markets
Simon Jurkatis (2022) — Journal of Financial Markets
Inferring Trade Direction from Intraday Data
Charles M. C. Lee, Mark J. Ready (1991) — The Journal of Finance