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Todayâs class: ORDER BOOK
You know that thing full of numbers flashing on the exchange that a lot of people look at and pretend they understood? Well, thatâs it. Today youâre going to understand what that represents and why itâs so important for understanding whatâs happening in the market.
The order book is basically where buy and sell intentions for an asset are recorded at an exchange.
đ„On one side, we have buy orders (Bids): participants waiting for specific prices to buy.
đ„On the other, we have sell orders (Asks): participants waiting for specific prices to sell.
And why does this matter?
Because price doesnât move just because a green or red candle appeared. It moves as orders are placed, filled, canceled, and executed.
A big concentration of orders can show an important liquidity zone. But hold on, Ninja, thereâs a catch there. đ
Itâs not because a giant wall shows up in the order book that that player will actually execute all of it. They can place the order and simply cancel it before execution.
So donât look at that giant order and think: âthere, I found where the market is going.â The order book also has bluffing. Thatâs why we never analyze isolated information.
What really makes the reading interesting is observing:
Order book + executed trades + volume + price behavior.
Thatâs where we start separating intention from execution. And remember this, Ninja: the order book alone doesnât predict the market.
Today I just wanted you to understand the basics. Later we start complicating things. đ
Want to know more???
Weâll continue during the week⊠in this same channelâŠ
Leave a like
#ThaiTraderOficial
#SECSaysBuybacksUpgradesDontMakeTokenSecurity
#BinanceSquare
Todayâs class: ORDER BOOK
You know that thing full of numbers flashing on the exchange that a lot of people look at and pretend they understood? Well, thatâs it. Today youâre going to understand what that represents and why itâs so important for understanding whatâs happening in the market.
The order book is basically where buy and sell intentions for an asset are recorded at an exchange.
đ„On one side, we have buy orders (Bids): participants waiting for specific prices to buy.
đ„On the other, we have sell orders (Asks): participants waiting for specific prices to sell.
And why does this matter?
Because price doesnât move just because a green or red candle appeared. It moves as orders are placed, filled, canceled, and executed.
A big concentration of orders can show an important liquidity zone. But hold on, Ninja, thereâs a catch there. đ
Itâs not because a giant wall shows up in the order book that that player will actually execute all of it. They can place the order and simply cancel it before execution.
So donât look at that giant order and think: âthere, I found where the market is going.â The order book also has bluffing. Thatâs why we never analyze isolated information.
What really makes the reading interesting is observing:
Order book + executed trades + volume + price behavior.
Thatâs where we start separating intention from execution. And remember this, Ninja: the order book alone doesnât predict the market.
Today I just wanted you to understand the basics. Later we start complicating things. đ
Want to know more???
Weâll continue during the week⊠in this same channelâŠ
Leave a like
#ThaiTraderOficial
#SECSaysBuybacksUpgradesDontMakeTokenSecurity
#BinanceSquare