/biz/ - Business & Finance

How can you tell, from a depth chart, which direction the price is moving?

So is there any way judge liquidity for buying and selling, or is it not a public info?

Is there anywhere I can see depth chart like this for stocks?

>>14740646
>A whale crashed the price to 8c Jan 1st+ with 100,000 coins.

>>14740646
>A whale crashed the price to 8c Jan 1st+ with 100,000 coins

so, according to you (i didn't check but doesn't matter), a whale crashed the price to $0.08 in jan. well, so what? soon after, it was back up. it's been $0.20, it's been $0.40, it's been all over the place since then on steadily increasing volume.

but how many times can these secret whales do that to the price, in your estimation? they just keep having unlimited amounts to dump forever? "crash the market and buy it back cheap!!" you say. you just don't understand markets yet. you might be capable of it, but you're not there. i'll help you.

most people don't understand order books. i see that you understand a tiny little bit, because i know you are the same guy who wrote the comment about italian war heroes yesterday, and i'm slowly understanding your particular brain disorder that you call way of thinking. so good for you, but you need to keep thinking it through.

when a whale "crashes the price".. he doesn't actually. he just crashes the price at a certain volume, or put a better way, he just consumes some high-price buy orders at low volumes. and he also creates high uncertainty about what the correct price is, which is fundamentally unknowable (everyone is just sending price signals to each other through the order book to figure it out). if you have ever tried to play a whale in a market, you know that by dumping/buying, all you can do is increase the spread temporarily. some of the time, the spread recovers quickly and other times more slowly, but afterwards the order book quickly resembles everyone's best estimate of the true value and volatility of the instrument. in the interim, the spread is too wide for you to get your position back, except at a loss.

Is it fair to say that when trade volume is rapidly changing (bullrun, coin crash) the depth chart is more or less useless?

People are market buying FOMOing in or panic market selling FUDing out.

The resistance/support levels only matter if the order numbers are significantly larger than the volume/time times your trading period.

In other words depth charts are only useful during periods of sideways trading to accumulate.