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29528273 No.29528273 [Reply] [Original]

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

>> No.29528383

>>29528273
You cant you can tell which direction has more resistance. But ultimately you can know which way people actually exicuting trades will push the price.

>> No.29528471

>>29528273
>>29528383
What can we reach with calculating the area of each on that type of chart?

>> No.29528473

>>29528273
look into order flow analysis if you think it's doable. maybe if you zoom out to $100 price groupings for btc for instance but even then it's all noise to me.
walls being pulled and back in all the time. hidden orders. constantly moving. this is a bot's job now.

>> No.29528526

>>29528273
If there is more area under the red than the green, what does it signify?

>> No.29528585

>>29528526
>>29528471
Same question.

>> No.29528824

>>29528526
at $3940 there are approximately 150 limit orders to sell.
at ~$3945 it jumps and there are 220 available for sale. that's a "sell wall"

>> No.29529418

The depth chart is nothing but a curiosity, it is way too incomplete and can change so quickly that it's essentially meaningless. Muh big support and muh big resistance can and do move, appear, and disappear in a moment.

>> No.29529432

>>29528824
Whats the significance of a vertical line, like at $3945 from 160 up to 230's and whats the significance of area under the green vs area under the red?

>> No.29529518

>>29529418
Are there any better indicators?

>> No.29529547

>>29529432
Stop trading.

>> No.29529596
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29529596

depth chart is boring
pic related however i

>> No.29529677

>>29529432
More red = more sellers
More green = more buyers
Straight line on the red side = resistance, will have trouble moving past that price
Straight line on green side = support, price will struggle to dip below that support

As other anons have said, all of this is meaningless. I think all this stuff only serves as a barrier to entry to make “trading” look like an over complicated science, exclusively to Wall Street’s benefit. It only makes for good memes

>> No.29529785

>>29529677
>>29529596
Honestly look at this and take my conclusions. Also has a bar chart there for visual comparison for walls.

>> No.29529989

>>29529547
I don't trade, I HODL, but I see these graphs shown all the time on this forum.

>> No.29530066

>>29529677
Thanks. This explains it all.
>>29529596
Name of this chart/list?

>> No.29530135

>>29530066
Order Book

>> No.29530156

>>29529677
What about when the red overlaps into the green side and vice versa?

>> No.29530220

>>29528273
The exact opposite of what you intuit and what any online resource will tell you. This is forbidden knowledge, use it wisely.

>> No.29530311

>>29528473
>this is a bot's job now
this.
unless you are hodling long (weeks or longer), realistically a human can no longer trade properly in the short game. Depth charts are useful for a few seconds because of the bots. All those orders are stops/limits and the violent movements you see are bots setting and canceling their positions dozens of times a minute to squeeze out 1% out of every price change. a human cannot realistically spend 18 hours a day reading charts and calculating their last buy with fees and their next sell with fees and maintaining a minimum of 1-3% gains per price movement while keeping their cost averaging goal within limits.
>playing the long game? trade yourself
>want to min/max your losses/gains? develop or buy a bot.

>> No.29530359

>>29530156
Doesn’t happen. Where the lines meet is the current price. Green overlapping onto the red side would mean that someone is willing to buy at a higher price than they need to. If that was the case the order would get filled immediately and it wouldn’t even show up on the chart

>> No.29530487

If you have two piles of sand spilling into the center, bigger sand wins

>> No.29530583

>>29530359
I see it constantly on live coin watch.

>> No.29530701

>>29530359
For example, these are overlapping now:
https://www.livecoinwatch.com/price/RepublicProtocol-REN

>> No.29530958

>>29530487
crude but good to illustrate the general idea of using the depth chart.
shame >>29530311 is right and its futile in the long run. might help you spot a few swings, it did for me a couple times but also burnt me as well. it's pretty much a gamble trusting only the depth/order book at this point.

>> No.29531047

>>29528273
It doesn't, but it does show current supports and resistances "in the exact moment".

You have good support at 3.875.
You have strong resistance at 3.945.

>> No.29531146

>>29530701
Is live coin watch good in comparison to trading view?

>> No.29531513

>>29531146
Well, I don't "trade" I just HODL so I really just wanted a basic understanding since so many people on this forum throw these graphs up and talk about sell walls, etc. You have all helped me grasp a better understanding of what I am looking at.
>>29530311
>>29530135
>>29529677
Thank you all.

>> No.29531624

>>29528471
The strength of the buyers and sellers.