Can you tell where the market is going by looking at the buy and sell orders?

[CryptoMouse]

Hi,

on binance, in the basic exchange mode, you'll have to your left a red sellers column and a green buyers column. Is there a particular technique that you use with the volume and prices to determine whether it's good to buy or sell? How do you read this and get an idea where the currency is heading? Anything particular you are looking for when viewing these buys, sales and placed orders?

 

[tommcginnis]

In any mass of players like that, market movement depends on the net -- the summed effect of all.
That mix of players changes with every tick, and thus the net effect is subject to change with every tick.
The closest we can get to market *direction* is to assess how much the pattern in front of us -- and from the last X minutes -- MIGHT hold for the *next* few minutes. That is, how much the current mix of players (and their trading agendas) will hold for the *next* few minutes.

This is a Forest-For-The-Trees issue: if you look too close, the details will be *fascinating*, but irrelevant. Getting the sense of larger/*longer* market agendas can really benefit from telescoping OUT, not in.

Food for thought.

 

[murray t turtle]

Hi,

on binance, in the basic exchange mode, you'll have to your left a red sellers column and a green buyers column. Is there a particular technique that you use with the volume and prices to determine whether it's good to buy or sell? How do you read this and get an idea where the currency is heading? Anything particular you are looking for when viewing these buys, sales and placed orders?

%%
Something like thaT;
except i use actual price data more=cant cancel or get surprised by fines/fake orders, in stocks anyway.....................................................................................................

 

[bone]

There is so much “spoofing”, flipping, order-crossing and gamesmanship going on with electronic order books that only a fool would try to interpret anything from depth-of-market.

 

[BloodSweatTears]

LOL!

 

[CryptoMouse]

That mix of players changes with every tick, and thus the net effect is subject to change with every tick.

What would be the effect of a sell wall/buy wall on this?

This is a Forest-For-The-Trees issue: if you look too close, the details will be *fascinating*, but irrelevant. Getting the sense of larger/*longer* market agendas can really benefit from telescoping OUT, not in.

Food for thought.

Looking at the 7 days and monthly chart development would be a good start to get a better picture?

actual price data

That would be transactions that happened in the past right?

There is so much “spoofing”, flipping, order-crossing and gamesmanship going on with electronic order books that only a fool would try to interpret anything from depth-of-market.

Is that because of bots?

 

[tommcginnis]

What would be the effect of a sell wall/buy wall on this?

Can you specify what you mean?

Looking at the 7 days and monthly chart development would be a good start to get a better picture?

I use 1min/4hr; 1hr/7day; 1day/6mon candles, usually. And a small-but-important mix of T/A.

 

[bone]

Is that because of bots?

There have been deceptions, falsehoods, and games being played in depth-of-market order books long before bots came on the scene.

Reading some of the CFTC Spoofing Cases - I’m sure that some bots have been programmed for nefarious order book deception; but this didn’t start with bots.

 

[murray t turtle]

What would be the effect of a sell wall/buy wall on this?



Looking at the 7 days and monthly chart development would be a good start to get a better picture?


That would be transactions that happened in the past right?



Is that because of bots?

%%
''Because of bots??" C Mo asks?? Maybe partly; elephant tracks, turtle tracks, bear tracks[so to speak]=every one votes in price data, by eod [end of day],
200 days or 10 years tells much more than 7 days ; NOT a prediction.

 

[HolyGrailSeeker]

You can tell. But its on a very short term effect, like probably seconds or minutes at most. On the mid or longer term the current buy/sell orders has little to no effect.
Another way is to look at the speed of the buy or sell orders being taken up.

Like others have said they could be fake buy/sell walls.
I dont really use depth of market because its too fleeting and very short term.