Definition
A sell wall is a concentration of offers that stands out against nearby selling interest. The displayed total can combine many orders, so a large wall does not necessarily identify one large holder. A cumulative depth chart often presents it as a sharp rise on the ask side.
How It Works
Buy orders reaching the level trade against its available quantity. If the offers remain, buyers must absorb them before transactions can move through to higher asks. Traders may therefore describe the area as potential resistance. Other sellers can also place orders below the wall, changing the distribution of visible supply.
Key Considerations
The wall can disappear through cancellation as well as execution, and fresh orders may replenish it. Its presence does not guarantee that the market will fall or remain below that price. A displayed order is not completed selling. Distinguish changes caused by actual trades from removed orders, and consider whether the chart groups several prices into one displayed level.