Order Book & Market Depth

Understanding market depth and order book data for better trading decisions

Documentation

Understanding the Order Book

The order book displays all pending buy and sell orders for USDT/THB, showing real-time market depth and liquidity. Understanding how to read and interpret this data is crucial for effective trading and market timing.

Real-Time Data

Live updates of all buy and sell orders with instant price changes.

Market Depth

Visualize liquidity levels and potential support/resistance zones.

Market Sentiment

Gauge market sentiment through buy/sell order imbalances.

Order Book Components

Bid Side (Buy Orders)

The left side shows all pending buy orders, typically displayed in green.

Bid Information

  • • Bid price (what buyers are willing to pay)
  • • Order size (amount of USDT)
  • • Cumulative size
  • • Number of orders at each level

Market Implications

  • • Higher bids indicate buying pressure
  • • Large bid walls can act as support
  • • Bid depth shows demand strength
  • • Best bid is the highest buy price

Ask Side (Sell Orders)

The right side shows all pending sell orders, typically displayed in red.

Ask Information

  • • Ask price (what sellers want to receive)
  • • Order size (amount of USDT)
  • • Cumulative size
  • • Number of orders at each level

Market Implications

  • • Lower asks indicate selling pressure
  • • Large ask walls can act as resistance
  • • Ask depth shows supply strength
  • • Best ask is the lowest sell price

Spread and Market Price

The difference between the best bid and best ask prices.

Key Metrics:

  • Spread: Best Ask - Best Bid
  • Mid Price: (Best Bid + Best Ask) ÷ 2
  • Last Price: Most recent trade execution
  • Mark Price: Fair value for margin calculations

Reading Market Depth

Liquidity Analysis

High Liquidity Signs

  • • Tight bid-ask spreads
  • • Large order sizes at multiple levels
  • • Consistent depth on both sides
  • • Quick order replenishment

Low Liquidity Signs

  • • Wide bid-ask spreads
  • • Small order sizes
  • • Gaps between price levels
  • • Slow order book updates

Support and Resistance Levels

Support Identification

  • • Large bid walls below current price
  • • Accumulation of buy orders
  • • Historical price levels with volume
  • • Round number psychological levels

Resistance Identification

  • • Large ask walls above current price
  • • Accumulation of sell orders
  • • Previous high price levels
  • • Technical indicator levels

Trading Strategies Using Order Book

Order Flow Trading

Use order book dynamics to predict short-term price movements.

Bullish Signals

  • • Large bids appearing below price
  • • Ask walls being consumed quickly
  • • Bid-ask ratio favoring buyers
  • • Aggressive buying through asks

Bearish Signals

  • • Large asks appearing above price
  • • Bid walls being consumed quickly
  • • Bid-ask ratio favoring sellers
  • • Aggressive selling through bids

Optimal Entry and Exit Points

Entry Strategies

  • • Place limit orders at support levels
  • • Use market orders when breaking resistance
  • • Scale in near large bid/ask walls
  • • Wait for order book imbalances

Exit Strategies

  • • Take profits before large walls
  • • Exit when order flow reverses
  • • Use stop-losses below support
  • • Scale out at resistance levels

💡 Order Book Analysis Tips

  • • Watch for sudden changes in order book structure
  • • Pay attention to the size and frequency of orders
  • • Look for patterns in order placement and cancellation
  • • Consider the time of day and market conditions
  • • Use order book data alongside technical analysis
  • • Practice reading order books in different market conditions

⚠️ Order Book Limitations

  • • Large orders can be hidden or split across multiple levels
  • • Fake walls may be placed and quickly removed
  • • High-frequency trading can create misleading patterns
  • • Order book only shows current intentions, not future actions
  • • Market orders can quickly change the entire structure
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