Definition

Withdrawal

The reduction of liquidity caused by a participant choosing to cancel their orders rather than have them consumed.

Full Explanation

Withdrawal is invisible. A participant who had limit orders at a level simply decides to cancel them — not because aggression consumed them, but because they changed their mind. The level looks exactly the same on the chart. The orders that were there are gone. When price returns, there is nothing to absorb it, and it breaks through. Withdrawal is one of three reasons a level that held before may break, alongside consumption and scaling aggression. The chart cannot tell you which one caused a break — all three look identical from the outside.

In the Book 1 chapter

Chapter 4 · The Mechanics

The Living Order Book

There’s a belief that floats around trading communities, stated so often it’s become assumed wisdom: if a level has been tested multiple times, it’s getting weaker. The idea is that each visit to a level chips away at the liquidity sitting there — buyers or sellers getting used up — and eventually there won’t be enough left to hold, and the level breaks.